This year has been full of technological movements that pose to completely shift the way we live our lives on the internet. With the explosive rise of DeFi, Web3, and other groundbreaking protocols, members of the cryptocurrency community have been able to explore the future of blockchain and trading. DeFi, or decentralized finance, is an alternative to traditional finance that avoids the middlemen by utilizing trustless protocols built on blockchain technology. According to Forbes, the total value locked in DeFi contracts is around a whopping $8 Billion.
That being said, the future has been looking particularly bright for certain areas of DeFi, with one sector particularly ready for evolution. Proof of Stake (PoS), the validation frenemy of Proof of Work (PoW), has been rapidly developing under certain networks and protocols. Most notably, a project named KIRA has taken the transformation and technological democratization of PoS into their own hands.
KIRA will change the way we use crypto
KIRA introduces a new kind of DeFi network that allows users to have an improved relationship with staked assets and their respective markets. The network allows users to trade and stake tokens from independent blockchains, which is better known as Interchain Exchange. The KIRA Network has an embedded Interchain Exchange Protocol (IXP) that allows users to stake any kind of digital asset while maintaining liquidity and earning revenue. Normally, PoS is a validation method in which users freeze or “stake” a digital asset in order to be chosen to help confirm a transaction on a blockchain. Ultimately, the user is rewarded for contributing to the network.
Though users avoid the incredible energy suck and necessary hardware that traditional PoW provides, PoS also prevents one from staking assets from other networks or trading whatever has been staked because the assets are essentially temporarily frozen. One of the main determinants that PoS unfortunately carries is that the larger the stake, the higher likelihood of being chosen for validation. This means that whoever stakes the largest value of a digital asset, the more likely they will ultimately be rewarded for their service. This is where KIRA’s liquid staking comes into play.
KIRA offers the most robust staking solution
The Multi Bonded Proof-of-Stake (MBPoS) works on KIRA’s radical Interchain Exchange Protocol (IXP) that allows users to stake any digital asset – be that digital real estate, non-fungible tokens (NFTs), cryptocurrencies, or stablecoins. The IXP does not require permission from a third party, and is built on cross-chain ecosystems like Cosmos and the highly anticipated Web3 platform Polkadot. When users stake a digital asset, such as Bitcoin, they are given the staking derivative sBTC so users can continue to trade while also earning block and fee rewards. This is an impressive diversion from current staking protocols, which normally only allow users to earn revenue from these rewards while trading an asset – staking usually is the only method of earning rewards from the network. The sheer diversity in stakable assets, as well as the latitude the MBPoS provides, is surprisingly still quite unique to DeFi and decentralized exchanges.
Staked assets can still be traded on the IXP. Therefore, there’s no need for users to unstake their assets in order to engage in trading. This means a more liquid network and more flexibility on the users’ end. KIRA truly embodies the ethos and overall purpose of DeFi – flexibility over personal assets while maintaining strong security.
KIRA recently raised $2.2 million in a private fundraising round and had a successful seed round with contributions from Acensive Asset Management and Alphabit Fund. The project is looking to empower users to utilize a versatile platform that is truly decentralized and allows a level of personal adaptability that had not been fully realized in the decentralization revolution.
KIRA is building a network that empowers the individual as well as the entire ecosystem; not to mention encourage the crypto community to rethink the foundation of staking and a better self-sustaining environment. Milana Valmont, a co-founder of KIRA, is looking to change the paradigm of validation altogether. “KIRA uses a utilitarian, greater good approach to consensus,” Valmont says.
Disclaimer: The writer has a working relationship with KIRA and used his role to access information for this article. The Daily Chain encourages you to carry out your own research before you make any form of investment and educate yourself about how to stay safe in the crypto space.