Unit Foundation
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Staking Pools
On a proof-of-stake (PoS) blockchain, transactions are validated by the creation of blocks by users who are invested in the blockchain. Staking is the process of participating in the transaction validation, where users deposit a certain amount of cryptocurrency into the network.
When the mininum balance of eligible crypto for staking is met, a node deposits the crypto into the network. The size and duration of the deposit that is held in the network, determines the likelihood for the node to be chosen to create the next block.
The benefit to users for participating in staking, are the rewards that are offered for this process. Once a user has staked their crypto and are chosen to validate transactions, the user is rewarded with tokens.
Staking pools offer the ability to increase a users' chances of creating blocks by pooling their computational resources with others on the network. With a staking pool, a greater stake can be deposited, therefore, having a greater chance to validate transactions and receive a reward.
Last modified 6mo ago
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