STAKING LAND

What is staking?

Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards. 

How does staking work?

  • When the minimum balance is met, a node deposits that amount of cryptocurrency into the network as a stake (similar to a security deposit). 
  • The size of a stake is directly proportional to the chances of that node being chosen to forge the next block. 
  • If the node successfully creates a block, the validator receives a reward, similar to how a miner is rewarded in proof-of-work chains. 
  • Validators lose part of their stake if they double-sign or attempt to attack the network.