Staking is the process of actively participating in securing and maintaining a blockchain network by locking up cryptocurrency tokens in a wallet or a smart contract. In return for staking their tokens, participants typically receive rewards or additional tokens.
When users stake their tokens, they contribute to the network's consensus protocol or governance mechanism, depending on the specific blockchain. This helps ensure the security and integrity of the network by decentralizing the decision-making process and incentivizing token holders to act in the network's best interest. The concept of staking was first formally introduced by Sunny King and Scott Nadal of Peercoin.
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