The Proof-of-Work (PoW) protocol was convenient for us. But due to the increasing energy demand, we needed a better option. That’s why we now have Proof-of-Stake. However, Bitcoin and some other cryptocurrencies still use PoW.
Crypto staking is a procedure for staking crypto assets to support the blockchain network and validate transactions. This protocol is also known as Proof-of-Stake (PoS). It is a better option because it reduces the energy demand and keeps the blockchain secure.
Many cryptocurrencies like Ethereum have now adapted this protocol. As the number of digital currencies is increasing, they have decided to use PoS to protect the environment.
In this article, we will explain PoS in detail. We will also tell you about the best staking options.
PoS is a consensus mechanism in crypto. It is used to validate transactions. Nodes on the blockchain must agree on the current state of the network and the actual transactions.
PoS is known for its efficiency. It also allows participants to earn money by validating transactions and receiving staking rewards.
Staking is the process of adding new transactions to the blockchain network. Participants must stake their coins, and the protocol selects validators. More staked coins increase your chance of becoming a validator.
Validators earn rewards in crypto (often the same token). Coins are not lost during staking but can be temporarily locked. Unstaking takes time and failing to confirm transactions may result in losing some coins.
If you’re interested in staking, here are a few options:
We also support staking in our platform — not only in CSW and CSWD coins, but also in NFTs.
Simply stake your NFTs in our dashboard and receive rewards in CSW. These will be locked until the game is released.
You will be able to check your rewards via the Dashboard after the launch.
Keep in mind, staking is different from mining, though both carry risks. With staking, there’s no need for expensive equipment. But if you're not confident in the long-term value, don’t stake your coins.