Staking Unbound: Yield Beyond Proof-of-Stake Basics
Staking cryptocurrency has emerged as a popular method for earning passive income in the decentralized finance (DeFi) space. This process allows users to participate in the operation of a blockchain network while earning rewards in the form of additional cryptocurrency. As digital assets gain further mainstream adoption, understanding staking becomes increasingly crucial for anyone looking to maximize their crypto investments.
What is Cryptocurrency Staking?
The Basics of Staking
At its core, staking involves holding cryptocurrency in a digital wallet to support the operations of a blockchain network. Specifically, staking is used in blockchains that employ a Proof of Stake (PoS) consensus mechanism. Instead of relying on miners to validate transactions (as in Proof of Work systems like B...