Why Stake Your Casper Tokens?
Staking is a crucial part of “Proof-Of-Stake” (POS) blockchains like CSPR.
With a proof of stake blockchain, validators (like us at Ghost Staking) validate transactions on the network based upon the amount of tokens delegated to our node – and get rewarded for this work. This very different to a “Proof-Of-Work” blockchain which requires a lot of computational power by miners to solve complex problems to validate transactions.
The advantage of POS is that it doesn’t actively encourage large mining pools like in POW which is what miners trend to in order to ensure the work they have completed is rewarded; in POW, due to the hashrate, two miners could effectively be working on the same transaction for one piece of work to be disregarded (orphaned). This orphaning is not great for efficiency, scalability and speed and perhaps more importantly not great for the planet due to the high energy use.
POS also ensures that no single validator can grow large enough to act maliciously on the network, as this is penalised.
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