What is Proof of Stake?
Proof of stake (PoS) is a type of algorithm by which a cryptocurrency blockchain network aims to achieve distributed consensus.
In PoS-based cryptocurrencies, the creator of the next block is chosen via various combinations of random selection and wealth or age (i.e., the stake). In contrast, the algorithm of proof-of-work-based cryptocurrencies such as bitcoin uses mining; that is,
the solving of computationally intensive puzzles to validate transactions and create new blocks.(i.e.mining).
When you’re staking a coin, you will be rewarded with x amount of coins, like a fixed deposit,
you will be paid an interest as a reward
The quantity of coins is defined by the coin developer and is presented in APR,
Annual Percentage Rate .There are coins out there on the market that pay from 1% up to 10.000%.
The reason why you get paid is because when you’re staking,
you have your personal wallet 24/7 opened and are helping support the blockchain network of that coin.
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