Note Book 1.0

Staking & Finance

Staking is a blockchain-based service that allows you to earn additional digital assets by locking in your existing holdings. Like interest models in traditional finance, staking returns vary depending on how long you lock in your funds. Staking is rewarded because the act of staking contributes to a vital part of the blockchain network.
Cet article vise à améliorer votre compréhension du staking.
Staking is a mandatory requirement of blockchains that operate using the Proof-of-Stake (PoS) consensus mechanism. This particular consensus mechanism relies on individuals to become validators by staking tokens. Validators have the right to vote for the governance of the network and are essential for processing transactions on the network.
Those who participate financially have an incentive to behave properly and maintain the completeness of the network, as bad actors could decrease the value of their participation.
Transaction validators are chosen differently by network. Most networks give more preference to those with higher stakes. This is because they consider larger bettors to be more committed.
The advantages of Staking
Staking is popular because it gives crypto holders the opportunity to earn while supporting the networks they are interested in. It promotes greater transparency, security and more.
Passive Income
By Staking the crypto-currency, you will earn rewards at the end of the lock-in period. Investing via Staking is a low-risk activity, as you will only lose if you misbehave or try to game the system.
Reduce the ecological impact
Proof-of-work (PoW) uses large amounts of energy to keep the network running. Consensus alternatives such as Proof-of-Stake (PoS) aim at a less energy consuming consensus.