Staking, What Is


The best-known cryptocurrency generation method is mining, which consists of using a very advanced computer to solve a logical problem necessary to validate a new block ("document" of transaction registration). Then the miner who generated the new block is rewarded with new cryptocurrencies.


Staking replaces the previous method (Proof of Work) so that it is only necessary to have a certain amount of cryptocurrency to be rewarded (Proof of Stake), that the bigger it is, the better. Not all cryptocurrencies implement this option to obtain new tokens. It is crucial to bear in mind that to make staking, it is likely that it is required to leave the cryptocurrencies blocked without the possibility of making transactions with them for a while.


From the above, derived Staking Pool. It allows an increase of the number of cryptocurrencies in a single Stake, the pool, so the possibility of having profits increases. Everything obtained by the pool is distribatok proportionally to the amount deposited by each investor.


ULand, learning from the crypto world

Author 2021-07-03