What Is ‘Staking’ in the Context of Proof-of-Stake?
Staking is the act of locking up a certain amount of cryptocurrency in a wallet to participate in the network's consensus mechanism. By staking, a participant becomes a validator, responsible for proposing and attesting to new blocks.
Validators are rewarded with new coins and transaction fees for honest behavior, and penalized (slashed) for malicious or negligent actions. It is the economic commitment that secures the PoS network.
Glossar
Transaction Fees
Fee ⎊ Transaction fees, inherent in cryptocurrency, options, and derivatives markets, represent the cost of executing trades and utilizing network infrastructure.
Solo Staking
Stewardship ⎊ Within the evolving landscape of cryptocurrency and decentralized finance, solo staking represents a paradigm shift towards individual responsibility in network validation and reward generation, aligning closely with principles of environmental and social stewardship.
Staking
Yield ⎊ Staking, within cryptocurrency ecosystems, represents a mechanism for participants to earn rewards by actively participating in the operation of a blockchain network, typically by locking up their crypto assets for a defined period.
Economic Commitment
Capital ⎊ Economic commitment represents the quantifiable financial resource a participant dedicates to entering and maintaining a position in a derivatives contract.
Cryptocurrency
Architecture ⎊ Cryptocurrency, within the context of derivatives and trading, represents a decentralized ledger technology fundamentally altering asset representation and transfer mechanisms.