DEF- Staking

Staking

Staking is when you lock up your coins on a Proof of Stake blockchain to help secure the network and earn rewards.

Quick Reference:

Validators Lock Coins. Lose Coins if Dishonest. Rewarded Over Time.

Expanded Explanation:

In staking, you comming your coins to support a network’s security. In return, you earn rewards, similar to earning interest on your fiat currency. The more coins staked, the greated the chance of being chosen as a validator. Staking is less energy intensive than mining and is becoming standard for new blockchains. Of course, bad actors have their coins taken and/or destroyed when discovered.