Staking might be considered a less resource-intensive option than mining. Holding money in a cryptocurrency wallet is necessary to maintain the safety and functionality of a blockchain network.
Staking, to put it simply, is the process of locking currency in exchange for benefits.
Most of the time, you may stake your coins directly from a cryptocurrency wallet like Trust Wallet. On the other hand, many exchanges provide their users with staking services.
Simply keeping your coins on the exchange is all that is required to earn rewards through Binance Staking. Later, more on this.
You must first comprehend how Proof of Stake (PoS) operates in order to have a better understanding of what staking is.
PoS is a consensus mechanism that enhances the energy efficiency of blockchain operations while preserving a respectable level of decentralization (at least, in theory).
In the essay that follows, we will delve into what PoS is and how staking functions.