Staking generally refers to a process in which one supports a crypto network by depositing coins. To do this, users can deposit their coin holdings in a wallet and thus generate a return. To clarify the concept, one should first know the terms Proof of Work and Proof of Stake: <\/p>\n
Proof of Work is a so-called trial-and-error method. Translated, this means something like proof of work. This mechanism is used to find an agreement in the respective network and to agree on an identical blockchain. The miners in the ecosystem must prove that they are providing a certain amount of work. The Proof of Work mechanism is applied through mining. The crypto miners use their computing power to solve mathematical puzzles. If they are successful, they receive Coin Rewards. Proof of Work is the basis of many networks. Many experts criticize the high energy consumption and the resulting electricity costs. In the Bitcoin network, approximately 66 percent of the total hash rate now comes from China. <\/p>\n