Binance.United states of america, the U.S. cryptocurrency trading platform of major crypto exchange Binance, will introduce staking rewards in February.

According to an announcement published by Binance.The states on Jan. 29, staking rewards will be made available for Algorand (ALGO) and Creation (ATOM) starting next calendar month.

Staking support for more than coins to come

Furthermore, the exchange announced plans to add other Proof-of-Stake (PoS) coins afterward. The announcement explains that an easy way to access staking "allows more people to earn rewards for contributing to the network by promoting network security, reducing validation costs."

Furthermore, Binance.US claims to be the first United States market to offering staking rewards for users' Cantlet and ALGO holdings. The firm's CEO Catherine Coley said:

"Staking is merely one of the many attractive means we are bringing new people into the digital asset marketplace. Nosotros consider this some other footstep towards achieving our goal of financial inclusion for an e'er-growing pool of people."

Staking centralization?

The annunciation follows the launch of a dedicated staking platform by Binance's principal cryptocurrency trading platform at the end of September 2022. Staking is an activity possible on PoS-based blockchains that allows the network'due south nodes to validate blocks past holding cryptocurrency as collateral.

While in the case of Bitcoin (BTC), a 51% attack requires a barrage of processing power, in the instance of a PoS blockchain, a 51% attack requires the aggressor to concur a not bad number of the coin that they are attacking. As Cointelegraph recently reported, Bitcoin Gold's (BTG) blockchain suffered a 51% attack resulting in over $70,000 worth of BTG being double-spent.

The initiative, often referred to as staking-as-a-service, attracted some criticism from the cryptocurrency community. Dovey Wan — founding partner of blockchain-based investment company Archaic Ventures — has commented at the time of the announcement:

"That'due south why RIP for all StakingaaS Exchanges gonna eat it, custodial wallets gonna eat it, fifty-fifty Prisoner of war pool gonna eat it, and then the remaining is a race to the bottom Bad business, just bad."