In Ethereum, staking refers to the process of participating in the network's consensus mechanism to validate transactions and secure the blockchain.

  1. Validator Nodes: Instead of miners competing to solve cryptographic puzzles (as in PoW), validators are responsible for proposing and validating new blocks in the PoS system.

  2. Staking Ether: Validators must deposit a certain amount of cryptocurrency, in this case, Ether, into a smart contract as a stake or collateral. This stake acts as an incentive for validators to behave honestly, as they stand to lose their stake if they attempt to validate fraudulent transactions.

  3. Block Proposal and Validation: Validators take turns proposing and validating blocks based on the amount of Ether they have staked. Validators with larger stakes have a higher probability of being chosen to propose and validate blocks.

Last updated