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Staking
Staking is the process of locking up a cryptocurrency in a blockchain network to support its operations, such as validating transactions and securing the network, in exchange for rewards. It is a key component of Proof of Stake (PoS) and its variations (e.g., Delegated Proof of Stake or DPoS). When users stake their crypto, they are selected to validate transactions and add new blocks to the blockchain, earning rewards in the form of the native cryptocurrency. Staking is viewed as an alternative to mining in PoW systems. For example, Ethereum 2.0 will allow users to stake ETH and earn rewards, contributing to the network's security and scalability.
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