The new proposal introduces a staking mechanism within the Bitcoin network specifically tailored for BRC-20 tokens or Bitcoin.
OKX, one of the world’s largest crypto exchanges and Web3 platforms, has announced that its multi-chain wallet will support “Bitcoin staking”.
Usually, staking is a feature of proof-of-stake blockchains such as Cardano and Ethereum, and it involves verifying transactions on the network in exchange for a reward (typically in the form of more crypto). Unlike Bitcoin mining, which uses high-powered computers to solve complex mathematical equations, staking requires holders to lock up their crypto as collateral in a smart contract.
OKX’s Bitcoin staking is different to staking PoS coins like Ethereum, since it doesn’t involve consensus validation. It does however enable users to lock up their BTC or BRC-20 in exchange for a reward in the form of BRC20-S tokens.
“With the introduction of BRC20-S, users can now stake their own BRC-20 tokens or bitcoin and receive BRC20-S tokens in return,” the announcement stated.
BRC20-S tokens are an “extension of the functionality of BRC-20 tokens”, but they have an added description of the staking protocol. “In this way, BRC-20 token holders can be rewarded for putting their digital assets to work, demonstrating their commitment to the community, and participating in the Bitcoin network.”
Related: What is crypto staking? | Staking made simple
This new capability is made possible by the implementation of OKX’s open-source BRC20-S protocol, which enables users to earn BRC20-S tokens via the OKX Web3 DeFi aggregator.
OKX Chief Innovation Officer Jason Lau said: “OKX Wallet is the first multi-chain wallet that enables staking for Bitcoin and BRC-20 tokens. We have heard from OKX Wallet users that they want more opportunities to participate in the ecosystem, and we are thrilled to deliver that for them.”
He added, “We are constantly listening to feedback and look forward to sharing additional feature launches later this month.”
OKX is a longstanding supporter of Bitcoin, and it was one of the first exchanges to fully integrate the Bitcoin Lightning Network into its centralised exchange in 2020. Binance followed suit on July 17, integrating the network to enable cheaper and quicker Bitcoin transactions.
Read more: What is the Bitcoin Lightning Network and how can I access it?
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