In general, staking can be defined as part of a process that certain tokens use to verify certain transactions. The mechanism can be described as proof-of-stake. This means that people who already have a stake in a blockchain can add additional transaction blocks to that blockchain. So crypto holders consciously use their existing token to continue the blockchain. The tokens are locked, but not transferred. In the case of proof-of-stake blockchains, the actual process that was previously referred to as “mining” is now referred to as “forging”. So, the idea of proof-of-stake is that the blockers (forgers) use their own tokens as a stake. Participation in such a process takes place via so-called staking pools. The special thing about such pools is that they have a higher probability of being selected as the next forger. In the BMF letter staking is described as the provision of a stake without taking over the block creation.
Staking is about providing a stake without being involved as a forger in the block. At the same time, staking offers the opportunity to receive additional income (rewards) by depositing tokens as a reward for supporting the network.
