Staking
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Description
Blockchain for Good:
"Staking involves a user immobilizing and locking tokens in a smart contract. The protocol randomly assigns one of the participants the right to validate a block of transactions and receive a token reward.
The "proof-of-stake" mechanism encourages users to lock up their tokens, as the probability of being chosen to validate a block of transactions is proportional to the number of tokens locked. The more tokens a user has locked, the higher the probability of being chosen to validate the transaction.
If a user attempts to write false transactions into a block, they lose their locked tokens and are banned from the network."