What is staking?
Staking is the act of holding and locking up a certain amount of coins to receive rewards. These coins can be locked in wallets or nodes of a Blockchain project for a period of time. The reward will be based on the effort the user has put in including: amount of coins staked & stake duration.
For blockchains that use the Proof of Stake (PoS) consensus mechanism, participants stake their coins into the network to validate transactions and create new blocks. Rewards (including block rewards and transaction fees) will be given to PoS participants as an incentive for their contributions.
Note: Some people often translate stake or staking as betting. However, this usage of the word is not entirely accurate. Staking is the act of locking coins/tokens into the blockchain's smart contract to receive rewards. In this action there is no betting nature to predict win or loss, right or wrong. Therefore, we should not use the above translation. For a concise and accurate presentation, Coin98 Insights will use the correct term "stake" or "staking".
Staking classification
Here I also want to clarify two concepts:
Staking in PoS consensus mechanism
That is, a certain amount of coins will be staked to ensure a certain task. In the PoS mechanism, you stake coins to ensure and prove your ability to process transactions and create blocks, and receive rewards for your efforts. This staking directly impacts the Blockchain network.
Typical examples are Blockchain Platform projects such as TomoChain, IOST, OneLedger (OLT), WAX, Tron (TRX),...
