Users who stake (provide funds) are ‘locking up’ their funds by depositing them onto the blockchain, which allows for it to be secure and functional. Typically, users who stake to a blockchain network earn a reward for helping to secure the network.

Staking is a very common practise with blockchains that use the Proof of Stake (PoS) consensus mechanism. After originating as a Proof of Work (PoW) platform, Ethereum became a PoS blockchain with The Merge. Many other blockchains, such as Avalanche, Cardano, and Solana, are all currently using some form of PoS.

Learn more about Ethereum staking.

Key Takeaway

Staking is the process of providing funds to a blockchain network in return for interest.

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