Staking is a process used in blockchain networks to secure the network, validate transactions, and earn rewards by locking up a certain amount of cryptocurrency as collateral. Participants, known as validators or stakers, contribute their cryptocurrency holdings to the network to perform tasks such as validating transactions and creating new blocks. In return for their contributions, validators receive rewards in the form of additional cryptocurrency tokens. Staking plays a crucial role in proof-of-stake (PoS) and other consensus mechanisms that rely on the participation of network participants to maintain network security and integrity. Staking provides an alternative to traditional cryptocurrency mining, which typically involves intensive computational tasks and high energy consumption. Staking allows cryptocurrency holders to earn passive income by supporting blockchain networks while reducing their environmental impact compared to mining.
