What is staking?

Staking is the process in Proof-of-Stake where a node operator (validator) freezes a part of their balance so that they are granted the right to verify upcoming transactions. The amount staked serves the purpose of a security deposit which is lost if the validator performs malicious acts harmful to the blockchain. Once granted the right, validators can begin verifying pending transactions, in return, they receive rewards based on the amount staked.

Last updated