What is staking?

If you’ve been around the blockchain space for a minute it is likely you already heard about staking.

But what is this staking thing everyone talks about?

Don’t worry, we’ll make it make sense.

Imagine a magic coin jar where people can deposit their money for safekeeping, and while inside, the money actually multiplies. That’s staking in a nutshell.

How does it work? By how much does it multiply? It all depends on each specific jar, the amount of money you deposit and how much time you leave it there.

Some jars have specific amounts of time you can leave your money inside, while others are more flexible and allow you to come and go freely, whenever you please. What they all have in common though is that when you decide to withdraw your money, you will receive more than you initially deposited.

There are different jars for different assets, each with their own type of rewards. You can stake anything from tokens to pictures of cows for example. In return, you can receive a specific token, or more, or maybe a picture of another cow. Each jar has its own terms.

As a coin jar collects more money, it becomes more trustworthy and so it attracts even more stakers.

What’s got everyone buzzing? Easy. Staking allows people to keep their money safe, support the projects they like and help them build trust, and earn rewards in the process. It’s a win for everyone involved.

So, what do you think? Are you joining the staking party?