Staking is the process used by Proof-of-Stake (PoS) blockchains to verify and secure transactions on their networks. Participants put up or “stake” their crypto for a chance to validate transactions and earn staking rewards.
Staking is a more energy-efficient way to secure a blockchain network than Proof-of-Work (PoW), which is the consensus mechanism used by Bitcoin and many other cryptocurrencies. In PoW, miners compete to solve complex mathematical problems in order to add new blocks to the blockchain. This process requires a lot of computing power and energy. In PoS, validators are chosen to add new blocks to the blockchain based on the amount of cryptocurrency they have staked. This means that there is no need for miners to compete to solve complex problems, which makes PoS more energy-efficient.
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