Crypto Staking
The term is used for cryptocurrencies that run on a Proof of StakeThe proof of stake consensus model was proposed in 2012 in r... More blockchainA blockchain is a shared digital ledger, or a continually up... More. Contrary to Bitcoin’s Proof of WorkProof of work is a consensus model in blockchain technology ... More consensusConsensus is a mechanism, usually used by most nodes on the ... More mechanism, in which the nodes (participants) are required to solve a difficult mathematical problem requiring energy intense computer resources, being incentivized via the block rewardA block reward is the reward a miner gets for solving the cr... More, 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.