Ethereum’s Merge Will Introduce Staking Rewards
Ethereum, a major blockchain, will allow users to earn rewards through proof-of-stake.
Developers behind Ethereum—a major Bitcoin competitor—are preparing for a milestone called the “Merge.”
The Merge, which will be activated in September, will fully introduce staking on Ethereum. It will reduce energy consumption while also providing users with a new way to earn rewards.
Staking Will Offer Rewards, Reduce Energy
The main selling point of staking is the promise of block rewards to those who stake funds on Ethereum. Participants are expected to earn about 5% annually on their staked Ether tokens.
Behind the scenes, the introduction of staking will see Ethereum transition away from its previous consensus mechanism and reward system: proof-of-work (aka “mining”).
Though mining is still used by major blockchains such as Bitcoin, it has become controversial in recent years due to its high energy consumption. Collectively, large mining facilities around the world consume as much electricity as small nations to mine Bitcoin and Ethereum.
Companies that invest in Bitcoin, such as Tesla and Microstrategy, have committed to solving the power consumption problem by promoting sustainable energy.
However, Ethereum will solve the issue differently. Instead of promoting sustainable energy, Ethereum will rely on proof-of-stake, which uses very little energy to begin with. Ethereum’s proof-of-stake model semi-randomly awards the right to validate transactions to those who deposit, lock, or “stake” their cryptocurrency on the Ethereum network.
Though various other blockchains have used proof-of-stake in the past, Ethereum is the highest-ranking blockchain to do so. The upgrade is the next step to helping Ethereum increase its transaction throughput and scale up to meet increasing demand from cryptocurrency users.
Other Ways to Earn Rewards
Traditional financial services do not have any functions that resemble staking, as there is no need for users to help those services process transactions.
However, there are a few ways in which users of traditional finance can earn rewards on their money. Though these options are not the same as staking, many banks offer interest-bearing accounts, while some payment cards offer cashback rewards or points programs.
At Payset, we offer a partner program that allows promoters to earn rewards on referrals. Participants can earn up to 20% on the deposits of merchants that they successfully refer to Payset. To find out more, visit our partner program page.
We make cross-border banking easy, affordable, and secure. Choosing Payset for your multi-currency account means choosing personal service, advanced security, and modern convenience.
Frequently asked questions
What is a multi-currency account/virtual IBAN?
A Payset multi-currency account allows you to receive money in 34 different currencies and send money in up to 38 currencies, all within the same account.
You can deposit and withdraw funds, convert currencies at competitive exchange rates, and hold your chosen currencies to capitalize on market movements.
A Payset multi-currency account allows startups and business owners to receive payments from clients virtually anywhere in the world and pay suppliers, staff, and contractors quickly and affordably in their chosen currency.
- Funds can be deposited and withdrawn from the account for a small fee.
- Account holders can send and receive money with other Payset users for free.
- Depending on your region, you can use various payment networks from your Payset account, including SWIFT, SEPA, ACH, Fedwire, Faster Payments, BACS, and CHAPS.
- Once you register an account, you will be provided with a Virtual IBAN (International Bank Account Number), which makes all of these transfers easy.
- We provide you with local payments and collections. For example, transactions in USD, EUR, CAD, and GBP are processed through the local payment networks, which is far cheaper and takes minutes as opposed to days
Are there limits on the amount of money I can send and receive?
No, there are no transaction limits on Payset multi-currency accounts.
However, higher-volume transactions may require additional anti-fraud verification. If you plan to make a large transaction, contact us in advance to avoid verification delays.
Which currencies can I send and receive in my account?
Payset allows you to receive payments in 34 currencies. You can send payments from your account in 38 currencies. For more details, check our payment guide.
How do I add money to my account?
You can add money to one of your Payset currency balances in one of three ways:
- Provide the account information to any person or company to pay you funds into the account from any bank account in the world.
- Send money to your account from another one of your accounts in another financial institution.
- Ask another Payset user to send you funds internally.
How do I send money from my account?
Once you have opened your verified IBAN account and added money to a balance, transferring funds is simple.
Simply log in into your account and add a beneficiary, then simply “make a transfer” in your preferred currency to that beneficiary.
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