BTCS Inc. (“BTCS” or the “Company”), a blockchain technology-focused company, announces the addition of Kava (“Kava”) to its blockchain infrastructure operations. Growing from a $3M Initial Exchange Offering in 2019, Kava is now a $913M layer-1 blockchain protocol with a decentralized lending platform at its core.
Latest Aithority Insights: Contract Lifecycle Management Platform IntelAgree Joins Cloud Security Alliance
What is Kava?
Kava is the native token of the Kava.io platform, which allows users to borrow the stable coin, USDX, and deposit a robust variety of other digital assets to earn a high yield. Kava uses price oracles to maintain the USDX price with the U.S. dollar. Price oracles can be thought of as data feeding bridges that are able to receive pricing information from the outside world and bring that data to a network.
In addition to decentralized lending, Kava is used for validator rewards that are distributed for maintaining the network. Kava can also be staked to earn voting rights that can determine proposal outcomes such as expansion decisions, new crypto asset support, and new features on the platform.
Kava’s Unique “One Network, Two Chains” Approach
Kava takes a cross-chain approach to decentralized finance (“DeFi”). Upon its launch, it became the first DeFi project deployed on the Cosmos blockchain. Instead of just relying on one cryptocurrency, Kava allows its users to leverage and hedge almost any asset that they want, supporting a multitude of different assets. Yet, despite being built on Cosmos, Kava supports Ethereum by enabling Ethereum’s developers and decentralized applications to build on the Kava platform. To this end, Kava founded a $750M initiative called Kava Rise aimed at onboarding developers to its platform.
“Kava’s cross-chain infrastructure speaks to a major part of the BTCS mission because it runs on two different Proof-of-Stake blockchain networks already supported by our infrastructure operations – Cosmos and Ethereum,” Michael Prevoznik, Chief Financial Officer of BTCS, said.
Browse The Complete News About Aithority: Empower Your Students to Thrive in a Multilingual World with Infobase Transparent Language Online
In addition to holding 250,543 Kava with a fair market value of approximately $1.3M, the Company secures Ethereum’s consensus layer by running 240 Ethereum validator nodes, which is similar to Bitcoin mining, and has staked 8,213 ETH. Further, the Company has staked 83,716 ATOM, the native token of Cosmos.
BTCS Kava Validator Node Generating Revenue
In addition to generating revenue by running a Kava validator node, BTCS has completed the technical work to integrate Kava into its planned staking-as-a-service platform once launched. The process of blockchain validation includes special intellectual property (IP), technical know-how, and regular maintenance to ensure efficiency. Staking allows users to generate an annual percentage yield (“APY”) on their staked assets whereas validator node operators charge a fee on users’ staked asset rewards in addition to earning an APY on staked crypto. The highly scalable nature of both staking Kava as well as allowing users to stake Kava to earn token rewards is the premise behind BTCS’ Staking-as-a-Service platform that is currently being developed.
Read More About Aithority News : Panaya ForeSight Introduces a Holistic Approach for Converting Old Salesforce Automations to Flow
[To share your insights with us, please write to sghosh@martechseries.com]
Comments are closed.