Definition
The process of locking cryptocurrency in a blockchain network to support operations like validating transactions. Stakers earn rewards in return for their contribution.
Why It Matters
Staking allows cryptocurrency holders to earn passive income while contributing to network security. It's a key feature of Proof of Stake blockchains.
Example
A user stakes 10 ETH through Lido and earns approximately 4% annual staking rewards.
Related Terms
Proof of Stake
Validator
DeFi