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What is staking and how does it work?
What is staking and how does it work?
Alex avatar
Written by Alex
Updated over a week ago

Staking means locking cryptocurrencies in order to secure the underlying blockchain network and receive rewards for that. It is an essential part of the Proof of Stake (PoS) consensus mechanism, which is a much more energy efficient alternative to Proof of Work mining.

Consensus happens when all computers on the network agree on the account balances and transactions happening between them. For processing network messages and verifying them until consensus is reached, the computers (Validators) are rewarded by the protocol.

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