How does simple staking work?
Simple staking differs from more complex forms (such as running your own validator node) in that it is maximally simplified for the average user. You do not need to have deep technical knowledge.
If you want to earn passive income without selling your digital assets, then simple staking can be a great solution.
What is staking?
Simply put, staking is the process of holding cryptocurrency in a digital wallet to support the operation of a blockchain network. In return, you earn rewards similar to the interest that a bank pays on deposits.
This mechanism is used in blockchains that operate on the Proof-of-Stake (PoS) algorithm, or 'Proof of Ownership'. Unlike Proof-of-Work (PoW), used for example in Bitcoin, where miners solve complex mathematical problems, in PoS validators (or stakers) are chosen to create new blocks and confirm transactions based on the number of coins they own and have 'staked' (i.e., locked) in the network. The more coins you stake, the higher your chances of being selected and receiving rewards.
