Crypto Staking

The term is used for cryptocurrencies that run on a Proof of Stake blockchain.  Contrary to Bitcoin’s Proof of Work consensus mechanism, in which the nodes (participants) are required to solve a difficult mathematical problem requiring energy intense computer resources, being incentivized via the block reward, with proof-of-stake, users validate transactions according to how many coins they contribute, or stake. In return for staking more coins, users have a higher likelihood of being chosen to validate transactions on the network and earn a reward.  This reward can include an annual percentage yield, and the exact percentage depends on which blockchain is used.

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