What Is Staking in Cryptocurrency? How the Proof of Stake (PoS) Algorithm Works

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  • Math

  • High School

  • 12th grade

  • Calculus and Advanced Math Concepts

  • English

Author's Instructions

The Proof of Stake (PoS) algorithm, by introducing staking as a means to enhance blockchain security and functionality, offers an eco-friendly solution that also conserves energy.

Staking is a form of passive income generation from cryptocurrency assets where block information is verified and validated without the need for mining systems.

However, like any other type of investment, this method also comes with risks such as Price Volatility Risk.

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