πŸͺ™
What is staking?
For any blockchain to work correctly they need to ensure the validity of transactions. They can either be based on Proof of Work (PoW) or Proof of Stake (PoS). Proof of Work implies using computer power to solve complex cryptographic mathematical equations. In Proof of Stake the users stake their coins for the right to validate new block transactions.
Proof of Stake: Individuals must stake an arbitrary number of governance tokens in order to act as a β€œnode” validating transactions and receiving rewards. The problem with Proof of stake is that transactions can become expensive and slow at scale.
Wait, wait. DoesnΒ΄t WAX work with Proof of Stake? Didn't it have no fees and over 23 million transactions per day? That’s correct, and it is because WAX runs under a Delegated Proof Of Staking to solve these problems.
Delegated Proof of stake: It is similar to POS but instead of letting anyone with governance tokens to act as transaction validators, DPoS assigns these tasks to established well-known and reputable nodes (a node is a set of data in which blockchain data is stored and updated consistently). Thus, stakers will continuously vote to delegate this task to the nodes, in that way verification of transactions will always rely on the most trustworthy nodes in the ecosystem.
Copy link