Blockchain and Crypto Blog

Ivan on Tech Academy provides latest insights and reports about the blockchain industry.

crypto staking cryptocurrency staking guide to staking

A Brief Guide to Understanding Cryptocurrency Staking

Written By Ivan on Tech

May 28, 2020

Cryptocurrency staking is a central concept for cryptocurrencies. In essence, it is the process of parking funds in a cryptocurrency wallet to support a blockchain network's functionalities and operations. It usually consists of cryptocurrency locking so that the user can receive rewards. In most cases, the entire process depends on the users participating in the blockchain activities through any personal crypto wallet, something on the lines of Trust Wallet. The concept of cryptocurrency staking draws parallel to the Proof of Stake Mechanism (PoS).

Background to Cryptocurrency Staking

Proof of Stake and Staking were introduced by Sunny King and Scott Nadal back in 2012. Initially, the concept was based on a hybrid PoW/PoS mechanism, but it later snapped out of this and embraced the Proof of Work (PoW) platform. With this, users were able to mine and support the project well in its early stages without the need to become entirely dependent on the PoS system. Later in 2014, the...

Continue Reading...
Close

Get our Free Ebook

Enter your email and we will send it to you!