Some blockchain conventions permit members to procure extra cryptocurrency (rewards) by adding to the organization. So, these rewards can be earn in a variety of ways, including stacking and inflation. However, Coinbase earn participates in these networks and distributes prizes to eligible customers who chose stacking or inflation.
How does Coinbase Prize Money work?
Some protocols give asset holders the ability to earn rewards through Proof of Stake, which means you can earn rewards for keeping a minimum balance. Rewards are calculate based on the amount of cryptocurrency you have in that particular wallet. This means that the more cryptocurrencies you hold, the more Coinbase can participate on your behalf; And you will be reward as much as possible.
Rewards are influence the frequency of blocks produced. But, that cryptocurrency network. Coinbase helps connect deserving customers with those platforms to receive rewards from those protocols.
Depending on the assets, you may have to accept certain conditions or choose stacking.
What is staking?
Stacking is the process of actively participating in a proof-of-stack (PoS) blockchain to legitimize transactions (such as mining). In this blockchain, anyone can verify a transaction with the minimum-require balance of a particular cryptocurrency and earn a stacking reward.
How does staking work?
1. When the minimum balance is met, a node stores that amount as a stack in a cryptocurrency network (similar to a security deposit).
2. The size of a segment is directly proportional to the probability of selecting that node to form the next block.
3. If the node successfully creates a block, the verifier receives a reward, similar to the way a miner is reward in a work chain.
4. If they try to double sign or attack the network, legitimacy will lose part of their partnership.