In the future, the blockchain could make the figure of the notary obsolete

According to ISTAT, there is a profession that is paid three times as much as the others: we are talking about the notary, a job that many believe could one day be replaced by the blockchain. We don’t want to get into this dispute, but there is no doubt that there are overlaps: both the notary and the blockchain are entrusted with an enormous responsibility, namely to certify the validity of the transactions. Without it, the risk of scams or errors would be exponentially higher.

Imagine, for example, that you want to buy a house: how much is it worth having the certainty that whoever is selling it to you is the real owner? Well, a lot! This type of security plays a huge role in so many transactions, which is why the notary gets paid so handsomely.

But the advent of blockchain is creating automated verification solutions, supported by a technological infrastructure and mathematical algorithms. All this makes the verification process:

1. faster;
2. cheaper;
3. accessible to all, even turning it into an earning opportunity.

If the reasons for the first two points are clear enough, it is more interesting to delve into the third. The big evolution is that the blockchain allows to democratize the verification process: if until now it was the exclusive competence of a small circle of people, the notaries, now it is accessible to all. All that is needed is to have some capital and make it available to the blockchain we want to contribute to.

To date, the most used processes are two. On the one hand the system “Proof of Work,” used for example by Bitcoin; on the other the system “Proof of Stake,” instead used by Ethereum.

The former is a process that uses computer power to verify the validity of transactions; the second instead exploits the blocked capital as a guarantee, together with the resolution of some algorithms. We don’t want to bore you with excessively technical details, but we would like to focus on this second model which, in addition to being the most popular, is also the one that offers the greatest earning opportunities.

Indeed you must know that There are no special requirements to participate in the transaction verification process in a Proof of Stake model. All you need is to have any capital, buy the token of the blockchain you want to support, and finally delegate those funds.

Specifically, the funds are delegated to a validator, i.e. an entity that makes the necessary technology available to the infrastructure to guarantee the validity of a transaction. Each blockchain has several validators, and each user is free to choose who to delegate to in exchange for a portion of the rewards generated by this process. A bit like notaries, validators are paid for their work and distribute these earnings to all users who have participated.

But that is not all. Thanks to DeFi, we can introduce a new level that allows us to make our capital work in a more efficient and profitable way. The limit of the process described up to now is that, once delegated, we no longer have the capital; this reduces our ability to access credit or generate additional income. In order to solve this problem, the so-called were created “liquid staking” protocols, i.e. applications that allow us to delegate our tokens, but at the same time receive a usable receipt within the DeFi world. Thus, it is possible not only to earn rewards from the verification process, but also to retain the ability to apply for loans and adopt more advanced trading strategies.

The combination of blockchain and DeFi opens the door to unexplored opportunities up to now, even if it should be emphasized that the process is still ongoing and will take time: let’s talk about an experimental technology that brings with it risks that should not be ignoredwhich is why it is always a good habit to investigate and verify what you are going to use, even if it might seem like “a bargain.”