Cross Staking Technology

How does it work?


Staking is the process of storing or locking cryptocurrencies in a target wallet for a certain period of time in exchange for rewards and passive income in cryptocurrencies in order to verify transactions on PoS blockchains.

These tools help maintaining security and provide maintenance of certain blockchains. Cross Staking is a second level (L2) protocol designed to be used by staking platforms to stake cryptocurrencies based on proof-of-work consensus (e.g. Bitcoin, Litecoin, Monero, etc.).

How does it work?

The technology is intended for implementation on platforms of large staking providers. It works like this:

  • — A staking provider using Cross Staking technology which is a layer 2 protocol deploys a sidechain based on improved proof-of-stake (PoS) consensus.
  • — It then binds it with a two-way connection to the consensus algorithm of proof-of-work (PoW) parent blockchain.
  • — With the help of this connection, it performs staking of cryptocurrencies.
How does it work?

Staking process

Let’s briefly describe how the staking process works:

  • — The process begins with the transfer of assets from the main blockchain by sending coins to a special user address.
  • — At a special user address these coins are blocked. Аfter checking the security of the operation by both blockchains, the corresponding amount of coins is allocated on the PoS sidechain.
  • — The deployed PoS sidechain uses two-way connection which allows the staking provider to transfer user assets from the main chain to the side chain and vice versa.
  • — Once the coins have been converted they become available for staking.
  • — Depending on the chosen tariff the user can stop staking when he sees fit or he will need to wait until the end of the staking period.
  • — Interest will be accrued until the client gives a request to withdraw his tokens from the network or until the staking period ends, according to the tariff.
  • — After the end of staking tokens are withdrawn from the sidechain and the corresponding amount is returned to the user on the main network.
Staking process

Scalable transactions

Only two transactions are recorded in the main blockchain: to enter coins into the additional network and to withdraw them back to the main network. However, many different transactions can be performed on the additional coin network.

Passive income

In the process of making various transactions, for example, transferring tokens from one type to another, generating interest from staking, transferring coins to a certain type of staking, withdrawing tokens and fixing profits, a certain commission is charged.
Due to the technical features of the PoS sidechain the cost of transactions is much lower than in the main network and their speed is higher. These factors allow the staking provider to charge an increased commission during the staking process, distribute the reward in the form of interest and receive income accordingly.


Cross Staking technology guarantees the security of transactions. The main chain (L1) is responsible for security and decentralization and acts as the data availability layer for the secondary chain. If the main network goes down L2 will go down as well. However, if L2 fails all funds will be safe and protected by L1. The main chain is also responsible for the availability of data, and the sidechain built on top of it is responsible for accruing rewards to users. Cross Staking serves to combine the protection of the main and secondary chains, thus ensuring the safety of both chains.

Ecological aspects

As per scientists at the University of Cambridge, annual consumption of electricity is estimated as 97.9 terawatts / hour during bitcoin mining. This is more than some states consume per year. The classic PoW blockchain is hardly a technological revolution with such power consumption. CROSS STAKING is designed to bring real innovation to the Internet economy while significantly reducing the power consumption of the crypto industry. At the same time, in the future it is possible that the energy consuming mining of cryptocurrencies will no longer be relevant. The sidechain deployed by CROSS STAKING technology is based on an improved proof-of-stake consensus algorithm which minimizes its impact on the environment.


As a result, the introduction of CROSS STAKING technology will solve many problems that the classic blockchain has, namely:

  • — improve network scalability and its performance;
  • — increase the level of security;
  • — will reduce the energy costs of blockchain projects by several times thereby increasing energy saving and developing a “green economy”.

Cross Staking technology is undergoing constant development, modernized and improved over time adapting to the ever-changing conditions of the post-industrial economy.