Quote from: Denbole9 on Today at 02:04:05 PM

Quote from: BOGDONO on April 13, 2021, 09:27:47 PM

Setting up and maintaining a staking pool often requires a lot of time and expertise. Staking pools tend to be the most effective on networks where the barrier of entry (technical or financial) is relatively high. As such, many pool providers charge a fee from the staking rewards that are distributed to participants. How do you do that?

Staking involves validators locking their coins so that the protocol can randomly select them at specific intervals to create a block. Generally, participants with larger bets are more likely to be selected as the next block validator.

Although ASIC mining requires a large investment in hardware, collateral requires direct investment in the cryptocurrency itself. Therefore, instead of competing for the next computational work block, it is better to choose a PoS validator based on the number of coins they bet.