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Staking

Staking is a process of locking up cryptocurrency in order to participate in the validation of transactions on a blockchain network. In return for staking their cryptocurrency, stakers are rewarded with cryptocurrency.

How Staking Works

In a Proof-of-Stake (PoS) blockchain network, stakers are randomly selected to validate transactions. The probability of being selected as a validator is proportional to the amount of cryptocurrency that is staked. This means that stakers with more cryptocurrency have a greater chance of being selected to validate transactions.

When a validator validates a transaction, they are rewarded with cryptocurrency. The amount of cryptocurrency that is rewarded is typically proportional to the amount of cryptocurrency that was staked.

There are many different PoS blockchain networks that allow users to stake cryptocurrency. Some popular examples include Ethereum, Cardano, and Tezos.

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