The term describing the process in which users delegate a certain amount of cryptocurrency to the blockchain to participate in network maintenance through validation is called "staking." In staking, users lock up (or "stake") a certain amount of the blockchain's native cryptocurrency as collateral to become validators or to support validators in Proof-of-Stake (PoS) or Delegated Proof-of-Stake (DPoS) consensus mechanisms. By staking, users help secure the network, validate transactions, and maintain the blockchain. Validators are chosen based on the amount staked, and they verify transactions and create new blocks. Honest participation is incentivized with rewards, while dishonest behavior can lead to penalties or loss of staked assets
. In the Delegated Proof-of-Stake (DPoS) variant, users delegate their stake to elected validators called delegates, who then validate transactions and maintain the network on their behalf. Token holders vote for these delegates by pooling their tokens, and delegates are incentivized to act honestly since they can be voted out for malicious behavior
. Summary:
- Staking: Locking cryptocurrency to participate in validation.
- Validators: Nodes that validate transactions and create blocks.
- Delegated Proof-of-Stake: Users delegate their stake to elected validators (delegates).
- Incentives: Rewards for honest validation; penalties for malicious actions.
This process is fundamental to PoS and DPoS blockchain networks like Ethereum (PoS), EOS, Tron (DPoS), and others
