To understand staking, you first need to know about “blockchain” and “proof-of-stake (PoS)” consensus mechanism. Proof-of-stake is a method used by some blockchains to agree on which transactions are valid and trustworthy. Unlike proof-of-work, which relies on computational power to secure the network, proof-of-stake selects validators based on the number of tokens they hold and "stake" (lock up) as collateral. You can only stake cryptocurrencies that operate on a proof-of-stake or similar consensus protocol.
When you stake your crypto, you become a validator (or delegate your stake to one) who helps secure and maintain the blockchain by locking your tokens in the network. This process helps to validate new transactions and add new blocks to the chain. In return for your participation and stake, the network rewards you with additional cryptocurrency - often distributed as staking rewards or interest - typically paid periodically (e.g., daily, weekly, or per block) depending on the blockchain’s rules.
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