ADA, the native token of Cardano, is one example of a cryptocurrency that can be “staked” in order to passively earn more ADA tokens.
have to compete with one another using energy-intensive computers to generate a winning code before anyone else in order to be selected to validate transitions and discover new blocks. Not only is this system bad for the environment, but it also involves a much high barrier for entry. With proof-of-stake, the hardware requirements are far lower meaning more people can participate and energy consumption levels are low.
Of course, this depends on a number of variables including each individual staking pool’s fees, how many participants there are in the pool and how many blocks are successfully proposed by the pool.As with all types of investing, there are always risks involved. The first and most obvious risk associated with staking any crypto asset is the token plummeting to zero.
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