What is staking and how it came about| 10% to tron-fan-club |

What is staking

Staking involves temporarily holding cryptocurrency in a wallet in other to support blockchain operations. Essentially, it consists of locking a certain amount of cryptocurrency in a wallet in order to receive rewards.

In most cases, this process depends on the users participating in the transactions on the blockchain using a personal cryptocurrency wallet, such as Trust Wallet.

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The idea of staking in cryptocurrency is related to the Proof of Stake (PoS) mechanism . This variant of transaction validation is used in many blockchains that are based on PoS or one of its many variants.

How did Proof of Stake come about?

Developers Sunny King and Scott Nadal pioneered the Proof of Stake algorithm and staking back in 2012. Peercoin was described as an innovative POS coin

Initially, it was based on a hybrid PoW/PoS algorithm, but gradually the project moved away from Proof of Work (PoW). This allowed users to develop and maintain early on without relying entirely on PoS.

Deniel larimer the creator of Delegated proof of stake (DpoS).It was first tested on part of the Bitshares network and subsequently other cryptocurrencies adopted this model. Notably, Larimer was involved in the creation of Steem and EOS, which also adopt the DPoS model.

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Deleted proof-of-stake allows delegators to place their balance in form of votes. Thisbin turn is used to select the number of delegates. The chosen participants then manage the operations on the blockchain on their behalf, ensuring security and consensus building. Also, stakeholders can still provide their coins in the form of a share (stake), periodically receiving a reward due to the holding of funds.

The DPoS model aims to reduce latency during transaction confirmation and increase network throughput (transactions per second). At its core, the algorithm allows for consensus to be reached at the expense of a smaller number of validating nodes. On the other hand, this basically results in a lower degree of decentralization as users rely on a selected group of nodes.