Staking

Staking is the process of locking up cryptocurrencies to support the operation of a blockchain network and earn rewards. It is a key component of the Proof of Stake (PoS) consensus mechanism and its variants, where participants help secure the network, replacing the energy-intensive mining process used in Proof of Work. Users who stake their tokens contribute to transaction validation and network security, receiving cryptocurrency rewards in return.

Staking can be done in several ways—individually (by running a validator node), through staking pools, or via cryptocurrency exchanges that offer simplified staking solutions. The main benefits of staking include passive income and support for decentralized networks, but it also carries risks such as fund lock-up periods, price volatility, and potential losses in case of network attacks.