Staking is widely used on networks that adopt the Proof of Stake (PoS) consensus mechanism to produce and validate new blocks. This allows networks to produce blocks without relying on mining hardware, as validators are selected based on the number of coins they stake (users who stake more coins have a higher chance of becoming the next block validator).
Earn rewards on crypto
Staking coins use PoS to produce blocks because it’s a more scalable method than other methods, which is why the Ethereum network will migrate from Proof of Work (PoW) to Proof of Stake (PoS) during the Casper upgrade. When the upgrade is complete, stakers will be able to earn rewards on crypto by staking Ethereum.
