Staking involves locking up cryptocurrency in a proof-of-stake (PoS) blockchain to help secure the network and validate transactions. In return, participants earn rewards, typically paid in the same native token.
The amount of reward received depends on several factors: how much you stake, the duration of the stake, and the network’s overall participation. Popular staking networks include Ethereum, Solana, and Cardano.
Staking is a key innovation over proof-of-work mining because it requires less energy and allows more users to participate in securing the network. It also introduces the concept of “slashing,” where bad actors can lose part of their staked funds for dishonest behavior.
