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Staking and pool de staking

Staking and pool de staking
Staking cryptocurrencies is a process by which users deposit their coins into a staking pool which is a program offered by some cryptocurrency broker in order to validate transactions and maintain network security. In return, these users receive rewards in the form of interest.

Imagine that you are a guardian of a medieval castle. The castle is the cryptocurrency network and you are responsible for keeping it safe. For this, you need soldiers (users who do staking) who are willing to deposit their weapons (their coins) to defend the castle. The more weapons you have, the safer the castle will be and the greater the reward for the guardians (the users who do the staking).

To do staking, users need to have a minimum amount of coins (usually called a "stake amount") in their digital wallets. These currencies are locked for a period of time (usually called a "stake period"), during which users cannot move them. When the stake period ends, users can withdraw their coins and rewards.

Rewards are generated by the validity of transactions, which is performed by users who stake. When a transaction is validated, users who stake receive a reward in the form of new currencies. This reward is proportional to the amount of coins each user has in their wallet.

In addition, because the network is maintained by multiple users, the network is less likely to be attacked or failed, ensuring the security of users and transactions.

In conclusion, cryptocurrency staking is a process in which users deposit their coins in a staking pool in order to validate transactions and maintain network security in exchange for rewards in interest. It's a way to actively participate in the network and earn rewards while helping to keep the network secure.

26/01/2023
 Ontorus Editorial
Posted by: Ontorus Editorial
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