Locking up coins to help run a proof-of-stake blockchain, in return for rewards paid in more of those coins.
Crypto Reviewed by Keshav Aggarwal · Updated
In simple words
Imagine putting your money in a piggy bank that a club uses to keep its games fair. Because you help, the club adds a few coins to your piggy bank now and then.
If you break the rules, the club can take some of your coins. That is staking.
The technical side
On proof-of-stake networks such as Ethereum (since the Merge in September 2022), Solana and Cardano, validators lock coins as a security deposit and are chosen to propose and confirm blocks. Honest work earns rewards; going offline or cheating can be punished by losing part of the stake (slashing).
Running an Ethereum validator needs 32 ETH, so many people stake through exchanges or liquid staking services instead. Rewards are not guaranteed, and staked coins may take time to unlock.
Staking kya hai?
Staking mein tum apne coins lock karte ho taaki blockchain safe chale. Badle mein thoda reward milta hai, par coins kuch time ke liye band rehte hain.
Not investment advice. Crypto tokens can lose all their value. Read the risk disclaimer.
Related terms
- Proof of StakeCryptoA way for a blockchain to agree on new blocks where validators lock up coins as a deposit instead of using mining power.
- BlockchainCryptoA shared record of transactions, copied across many computers, where each new block of entries is linked to the one before it.
- Crypto WalletCryptoAn app or device that holds the keys to your crypto, letting you send, receive and use coins on a blockchain.