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Friday, December 17, 2021

Crypto Staking

Language is big barrier of entry into the Crypto universe.
Crypto staking is the process of locking up crypto holdings in order to obtain rewards or earn interest. Cryptocurrencies are built with blockchain technology, in which crypto transactions are verified, and the resulting data is stored on the blockchain. Staking is another way to describe validating those transactions on a blockchain.
Source: https://www.sofi.com/learn/content/crypto-staking/
Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Source: https://help.coinbase.com/en/coinbase/trading-and-funding/staking-rewards/staking-inflation

What is my take on stake? It is the process of loaning your fiat currency to an institution that is not FDIC insured.

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