Start-Up
Staking
Staking is the process of participating in the proof-of-stake (PoS) consensus mechanism of a Blockchain by locking up a certain amount of Cryptocurrency to support the network’s operations, such as validating transactions and securing the network. In return, participants earn rewards, typically in the form of additional Cryptocurrency.
Examples and Cases
- Ethereum 2.0: As Ethereum transitioned from proof-of-work to proof-of-stake, users can stake ETH to earn rewards and help secure the network.
- Cardano: Users can delegate their ADA to a Staking pool, allowing them to earn rewards without needing to run a full node.
- Tezos: Users can participate in ‘baking’ by Staking their XTZ, earning rewards for validating transactions on the Tezos Blockchain.