Open blockchain platform Harmony announced that it will now support staking along with sharding, aiming to create a blockchain infrastructure that attains high scalability.
On May 19, 2020, Harmony claimed it is the first to ever integrate staking into a blockchain network also utilizing sharding to attain high transaction throughput.
Nick White, Harmony co-founder said:
“You will not find another chain that can support the same throughput, same speed of settlement, same extremely low cost, and the same level of decentralization. This puts us in a sweet spot for growth.”
Staking is the process (utilized in Proof-of-Stake blockchain protocol) where users on the network stake their cryptocurrency holdings to support network operations.
The network then rewards the users for their contribution, the larger the amount at stake, the bigger the reward.
Harmony CTO Rongjian Lan said that the convergence of staking and sharding was an “order of magnitude more complex to build and design.”
However, with its new staking mechanism namely “Effective Proof-of-Stake”, Harmony claims it will strike a balance between large and small scale stakers.
How to Optimize your Staking Rewards: Our novel #Staking mechanism “EPOS” is capping the rewards of large stakers & boosting the rewards of smaller stakers. If your stake is > than the upper threshold of Median Stake, you should add more BLS or delagate to another validator. pic.twitter.com/fslzqLLmMk — Harmony (@harmonyprotocol) May 17, 2020
Basically, the network will cap the reward processed to those with higher stakes and boost it for those with a relatively smaller amount.
Harmony also intends to increase the number of public nodes from 320 to more than 1,000 by the end of this year. They also aim to further decrease the network settlement time and bring it below 8 seconds.
Harmony CEO Stephen Tse said that, after making the network more scalable and decentralized, they will look towards solving the harder challenge, i.e. adoption:
“We will shift gears to pursue adoption with the same nonstop execution.”