A blockchain is an immutable, distributed ledger of transactions which is maintained by a peer-to-peer network rather than a centralized authority. It can be thought of as a distributed database that gets synchronized as soon as changes are made.
Blockchain technology utilizes powerful consensus mechanisms (such as Proof-of-Stake) alongside crypto-economic incentives to verify the authenticity of transactions, secure the peer-to-peer network, and nominate nodes (special peers in the network) to generate blocks.
Proof-of-Stake (PoS) is a consensus algorithm used for the generation of new blocks. It requires validators (special nodes running the blockchain) to stake the network's native token in order to propose and/or validate new blocks and ultimately earn rewards. A stake may be slashed by the network and thus disincentives bad behavior.
Validators are special nodes in PoS-networks, more precisely delegated Proof-of-Stake networks. They operate the blockchain infrastructure, propose and validate new blocks, and receive rewards (in the form of new tokens) for doing so.
Token holders who want to stake their tokens but do not want to run a validator node, are called delegators. They can still contribute to the networks' security and earn rewards by delegating their tokens to a validator of their choice and thus use the validator’s infrastructure instead of setting-up and maintaining their own servers. For some networks, in the event of a validator misbehaving according to the protocol, delegators of the respective validator will also be penalized by the blockchain network in proportion to their staked assets. We therefore advise you to carefully choose your validator infrastructure.
Similar to validators, nope operators are special participants within blockchain networks. For the different networks across the Web 3.0 tech stack, that we work with, we differentiate our role between validator and node operator. The former allows us to accept delegations by token-holders, whereas we do not accept delegations in the network in which we function as a node operator. In these networks, we provide services to the network such as data indexing or providing off-chain data as an oracle.
Web 3.0 is also referred to as the "Internet of Value" or the "Stateful Web" and is considered as the next evolution of the internet after Web 2.0 and Web 1.0. Web 3.0 is the result of technologies such as AI, IoT, or blockchain converging. Blockchains play an important part as they allow for an alternative to the client-server model in which data is centrally controlled and managed by trusted institutions. This has oftentimes led to privacy issues, monopolistic tendencies, hacks, and data breaches. In the current internet, it is not possible to transact value in a digital native manner. Cryptography and game theory, used in blockchain networks, allow for an alternative to the current architecture of the internet. One that is powered and secured through decentralized infrastructure. Blockchain technology provides a "clearinghouse" and settlement layer to the internet, overcomes single points of failure, allows for digitally-native assets, as well as collaboration and coordination on a global scale. We are pioneering this new digital frontier. Join us on this exciting journey!
Non-custodial staking refers to the process of using a validator’s infrastructure by delegating the capability to work for the blockchain and provide infrastructure to the blockchain and ultimately earn rewards by the blockchain network for doing so to someone else. This applies to every Proof-of-Stake token. Delegating tokens is not the same as sending tokens, because delegators do not transfer ownership in the token itself. The original holder remains the legal owner of the tokens at all times. Hence, the holder does not give up custody of his/her token.
Proof-of-Stake blockchains are inflationary as new tokens are rewarded for generating and validating new blocks. Token holders who are not engaging in the staking process - either by operating as a validator themselves or by delegating their tokens to validators and thus using the validator’s infrastructure - stand to lose out on rewards and see their assets getting diluted over time.
Since we offer non-custodial delegation services for our networks, we never have control over your assets. Rest assured, you are always in full control of your assets and can withdraw the delegation at any time. By delegating to us, your assets are virtually added to our stake. The blockchain network automatically transfers rewards to your blockchain address and we keep a small fee as a consideration for operating the infrastructure you use. We offer a transparent service and operate industry-grade architecture in order to achieve our goal to always meet the protocol’s service levels (e.g. no double signing; going offline etc.) and to avoid slashing. Please visit the subpage of the respective protocol for more details. For general information about risks refer to our terms which you accept by delegating tokens to our validator.
Further risks include: key/asset mismanagement by the enduser resulting in loss of funds; protocol errors; or attacks against the network.
Our validation services are non-custodial. We therefore have no access to your tokens at any point in time. It is simply impossible from a technical perspective. You maintain full control over your tokens at all times.