Crypto.Org Chain Staking, everything you need to know (Mainnet)

crypto.com recently launched the crypto.org chain 
mainnet marking another huge milestone for the   platform this launch introduced a list of changes 
and maybe the most interesting one together with   their new blockchain is the new way of staking you 
can now become a validator or a delegator and earn   up to 20 interest on your cro all this while 
keeping custody of your tokens meaning your keys   your crypto at the time of this video staking on 
the crypto.org chain is still very new so there's   not a lot of people doing it yet meaning the 
interest is a lot higher currently it's around   60 per year the more people that start to join and 
do the staking as well the more this number will   decrease but i will go into more detail about 
this later as stated on the crypto.com website   they aim for a yield of about 20 per year in this 
video i'm going to tell you everything you need   to know about staking from picking good validators 
to explaining how it works and finally showing you   how you can start earning interest on your cro 
i'm going to start with a little bit of theory   which will be essential to understand if you 
want to maximize your returns but if that's not   interesting for you you can skip directly to the 
staking i'll leave timestamps in the description   so you can skip it on the crypto.org chain you 
can earn interest by becoming a validator or a   delegator all of this is part of the tendermint 
consensus engine but don't worry i'll keep the   explanation high level and understandable if we 
compare this to bitcoin which uses a proof of   work system where miners use computer power to add 
transactions to the blockchain well the crypto.org   chain will use a proof of staking system in this 
system the validators act as miners but instead   of using computing power to add transactions to 
the blockchain they use a stake of coins to do   this work it may be a little bit difficult 
in the beginning to grasp this concept but   don't worry the further we progress in this video 
the more clear everything will become at least i   hope so let's take a closer look at validators as 
i've mentioned before it's a validator's job to   make sure the blockchain so the cro transaction 
list stays up to date and secure validators add   transactions to the transaction list which is 
called the blockchain and if they do a good job   they will be rewarded with block rewards and fees 
so they get rewarded for the work that they do   and that's why we get interest if we stake cro on 
the other hand if the validator does a bad job by   staying for example inactive for a while he can 
get punished by the network but more on this later   in order to become a validator you need a computer 
with 16 gigabytes of ram one terabyte of storage   space and you also need to stay online 24 7 so 
you also need a decent internet connection there's   currently no minimum amount of cro that you need 
to have in order to become a validator but the   more owned crow you have the more trustworthy 
you will be as a validator so more people will   delegate their cro to you which means that you 
will have more chance to be selected as an active   validator basically the more zero you have the 
more chance you will get to earn rewards this   video however will be focused on delegating but if 
you like to learn how to become a validator which   is a little bit more advanced please check out the 
following link and that brings me to delegators if   you don't have the required hardware or a big bag 
of cro or you just want to get interest without   any hassle you can always become a delegator as 
i've mentioned before the more cro a validator has   the more likely it will be that he will be 
selected by the network to do validator work   if he does a good job then he will get rewarded in 
the form of cro as a delegator you can support a   validator by delegating your cro to him which 
makes his position stronger the network looks   at the total amount of cro a validator has which 
means his own stake plus the amount he gets from   all the delegators that state their coins to him 
so as a delegator where this video is focusing on   your job is to support a validator you do this 
by basically lending coins which adds to their   stake the validator's stake and don't get me 
wrong these coins always stay under your control   if you've picked a good one so validator that 
does a good job you're supporting him you will   share in the rewards but if you pick a bad one so 
a validator that doesn't do a good job you might   share in the punishment and that brings me to 
jailing and slashing an example of doing a bad job   or bad behavior is inactivity or aliveness faults 
there will be a minimum amount of blocks an active   validator has to sign if he fails to do so if he 
fails to complete this task then a punishment will   be triggered the amount of blocks that need to 
be signed is variable and depends on the network   this is why it's important that a validator has 
decent hardware and a good internet connection   another example of bad behavior is byzantine 
fault this basically means that a validator is   attempting to sign multiple blocks at the same 
time to for example double spends so these were   two examples of bad behavior which a validator 
could do and that brings me to the punishments   if a validator makes a liveness fault so for 
example they don't sign enough blocks in the set   amount of time they can become jailed this means 
that they lose their active validator status and   won't be receiving any more rewards until they 
are unjailed if a validator makes a more severe   fault like the byzantine fault the double 
spent thing then part of his funds can get   slashed this means that part of the stake can get 
removed the exact amounts that will get slashed is   calculated using a formula which uses parameters 
like the amount of blocks that was signed etc you   might be wondering i've mentioned before that this 
video is focused on delegators so why do validator   punishments matter to us well the thing is that 
validators and delegators are on the same boat   with that i mean even if you as a delegator you 
delegate to a validator that shows bad behavior   and he gets slashed for example so part of the 
funds will be taken away you as a delegator will   also share in this punishment there is however a 
really important nuance here that i have to make   so don't get scared i just want to make it very 
clear that you shouldn't be too worried about   this everybody in the network is incentivized 
to show good behavior it's much more logical for   a validator who has a lot of expenses for the 
hardware and he needs to put up a huge amount   of own steak so he has a lot of cro at stake if 
he does bad behavior he doesn't want to lose his   stake that's basically throwing away money so 
just to be clear it's much more logical for a   validator or basically everybody who's a member 
of the network to do a good job you get such a   huge reward 20 like i've mentioned before if you 
do a good job so why would you try to mess this up   that being said it's still very important that you 
take your time if you select a validator there are   multiple parameters that you can use or basically 
a checklist to check if a validator is good or not   and we will go over this in a little bit so that 
was it for the theory it took a little bit longer   than i anticipated but now everything should be 
clear what a validator is what a delegator is   and what the potential risks are if you didn't 
really understand everything don't worry because   luckily there's two ways to stake a really easy 
one where you can just stake with a couple clicks   of a button and a more advanced one where the 
theory will where it will be important that you   understand the whole theory surrounding it the 
benefit of the more advanced one is that you can   select your validators manually which means you 
could potentially earn more interest but the   downside is that it's a lot less user friendly 
you need to understand all the concepts that   i explained earlier in this video and well 
that can be quite intimidating for a new user   so i'll start with the easy way for this one you 
need to download the crypto.com define wallet it's   available both on android and ios so once you've 
downloaded the app you get to the following screen   here you can create a new wallet or import an 
existing one i'll just fly over this process   really quickly just for the completeness of this 
video after you've selected to create a new wallet   you'll be prompted to confirm create a new six 
digit passcode after you've done that you can   press done on this screen which will bring you to 
the recovery phrase and this is really important   the recovery phrase is a 12 word seat that will 
act as basically yeah the recovery of your wallet   if your phone dies or it gets stolen or whatever 
you don't have access to your wallet anymore   you can always download the app again on 
new wallet and then instead of creating   a new wallet you select import existing one there 
you will be prompted to give the recovery phrase   so it's really important that you write it down 
and keep it away from everybody else basically   anybody who has access to this 12 word seat has 
access to your wallet and your funds so after   you've written down the 12 words you can continue 
and finally you arrive at your wallet you can send   cro to this wallet by clicking on cro and then 
you press on receive on this screen if you select   cro you will be sending over the crypto.oracle 
blockchain well if you pick erc20 you will be   sending over ethereum if the wallet where you're 
sending from supports the cro network for example   if you send from the crypto.com wallet or app then 
you'll be able to send over the crypto.org chain   which means the fees will be really small well 
if you send to erc20 then you'll have to pay a   larger fee once you have your funds in this wallet 
then you can press earn in the bottom right corner   you then press start earning you choose cro and 
you choose the amount you want to delegate let's   pick one cro for example then you confirm the 
stake and you get the following pop-up in order   for you to stake on the crypto.org chain you will 
have to bond your cro tokens this means that if   you want them back and to withdraw them you will 
first have to unbond them which takes 28 days   this however is nothing new if you compare this to 
polka dot for example where you can also stake on   chain it's exactly the same if you want to unstake 
i mean unbond you will have to wait 28 days so   after that you press proceed and basically that's 
it your transaction however will first have to be   submitted and confirmed but after that you'll 
start earning interest that's it for the easy   methods and that brings me to the advanced methods 
like i mentioned before this is a little bit less   user-friendly because you have to select your 
own validators you have to pick them yourself   but the advantage here is that you could 
potentially earn more interest so how do we start   well the first thing we need to do is download the 
crypto.org chain desktop wallet which is currently   in beta it's available both on windows and mac 
and you can find it through the following link   i'll also put it in the description the basics 
are the same as the default wallet you just create   a password and you write down the word phrase 
also make sure that you select the mainnet when   asked not the testnet once you've done all that 
congratulations you got your very own crypto.org   desktop wallet you start off by sending your cro 
to this wallet and you do that by pressing receive   and this is your address well this is mine but 
when you do it on yours you'll see your address   important to note here is that this address has 
cro as prefix as you can see it starts with cro   so then you know it's the new crypto.org 
blockchain wallet in order to stake with   this wallet you go to staking and then you select 
delegate funds here you enter a validator address   and stake amounts so like i mentioned before the 
big difference with the d5 wallets is that you   here have to manually select your validators and 
that brings me to the following segments where   can i find the validator list and how can i know 
if a validator is good or not you can find a list   of validators through the following url and the 
list looks like this but what's really important   is how can we tell if validator is good or not 
well there are four principles we have to take   into account the more cro a validator bonded from 
his own stash the more he has to lose so basically   a validator with a huge own stake will be more 
likely to do a good job so that's a very important   parameter to take into account the second 
parameter is the amount of delegated cro this   is basically the combination of the validator's 
own stake which we discussed in point one plus the   amount of all the delegators have given a stake 
in support for this validator the bigger the total   amount of cro a validator has the more likely it 
is that the network will select this validator to   become an active validator do work and receive 
rewards the third point is the commission rate   being a validator is a very costly operation you 
have to make sure your hardware stays online 24 7.   so a validator can charge a commission so 
basically a percentage of the rewards make   sure that this percentage this commission isn't 
too high because if it's 100 for example if you   delegate to this validator you won't receive any 
rewards the fourth and last point we have to take   into account is the track record of the validator 
basically this is one of the most important ones   it's the history of the validator has he shown any 
bad behavior in the past does he go offline a lot   we would as a delegator we would prefer a 
validator that has a clean sheet and has done   a good job in since he started so let's test our 
strategy on a real validator let's pick the first   one out of the list which is called pegasus this 
one has the largest amount of voting power this   means that the total amount of his own stake plus 
the stake of all his delegators is the highest in   the network that's a very good sign on top of that 
he has an own stake of 33 million cro which is   huge again another good sign a commission rate of 
0.1 this basically means that the commission is 10   so of all the rewards that are gonna get shared 
he's gonna keep ten percent which is okay don't   get me wrong a low commission rate is really 
good um but with a validator like this the   plus points are he has a very huge own stake 
so he has a lot to lose and he's been active   for a long period of time as we see here he's been 
doing the validated work since the genesis block   which is the first block so a commission rate 
of 10 is a small price to pay for security and   certainty that you will earn rewards if you 
look to his history we see that he's been   active for a very long time no bad behavior so 
far so this would be a perfect validator the only   thing you could say is 10 might be a bit on the 
high side depending on who you ask but then again   the security and certainty that a validator like 
this will bring to a delegator might be worth it   depends on how who you ask so for the sake of this 
video imagine that you wanted to delegate to the   pegasus validator then you would copy the operator 
address then you go back to your wallets you   copy paste the operator address in the validator 
address you choose a delegation amount and then   you press review after that your transaction will 
have to be submitted and confirmed and once all of   that is done you will be actively staking with the 
pegasus validator sharing the rewards so that's   basically the process you would go through if you 
do the advanced way of staking as you can see the   simple way through the default wallet just takes 
a couple of clicks while this one takes requires a   little bit of research so it's up to you to decide 
what you prefer so that was it for this video it   was a little bit longer than normal but i really 
wanted to cover all the aspects of staking with   crypto.com i can imagine that a lot of people will 
have questions feel free to leave a comment i will   try to answer them and maybe other people could 
help as well i also have a discord server where i   talk about cryptocurrency and investing in general 
we can discuss stakingwithcrypto.com further there   for example i'll leave a link to it in the 
description i want to thank you for watching   if you enjoyed this video please leave a like and 
subscribe it really helps promoting my channel and   makes the video more visible to more 
people again thanks for watching and bye

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