Staking

Staking is the process of participating in a Proof-of-Stake (PoS) consensus mechanism to validate transactions and secure a blockchain network, in exchange for rewards. Instead of using powerful hardware to solve cryptographic puzzles like in mining, participants "stake" or lock up a certain amount of their cryptocurrency holdings as collateral. This commitment gives them a chance to be selected by the network to validate new blocks of transactions. If they successfully validate a block and adhere to network rules, they earn new coins as a reward, similar to interest.