This article was first published on Centrality - Medium
Public staking is about to get underway on CENNZnet. So without further ado let’s dive into the process of staking and the nitty-gritty of how to stake on CENNZnet to earn CPAY rewards, improve the security of the network and even participate in the network’s governance.
An introduction to consensus mechanisms
For those who may be taking their first tentative steps into staking it’s important to understand exactly why the system exists in the first place.
PoS or Proof of Stake is a consensus mechanism. Consensus mechanisms are systems used in blockchain networks to achieve agreement (or consensus) on single data values or parts of the network among the decentralised or distributed system. In other words, it’s a way of checking that nobody is tampering with the blockchain ledger by making sure we all agree on those transactions that are correct and those that are not. This is really important for a self-regulating decentralised community, as we don’t have (or want) a single authority to decree what does and doesn’t go in the ledger. A robust consensus mechanism ensures that we have a secure blockchain ecosystem that is fair and accurate.
There a number of different possible consensus mechanisms used by various blockchains such as Proof of Stake (PoS), Proof of Work (PoW), Delegated Proof-of-Stake (DPoS), Proof-of-Authority (PoA), and Proof-of-Importance (PoI) to name a few. By far the most popular are PoW and PoS.
Proof of Work is used by Bitcoin and was the first consensus method to enable a functioning blockchain. Since then Proof of Stake has been developed as a low-cost, low-energy consuming alternative to the POW algorithm.
What is PoS staking?
Staking is the process of holding funds in a specific cryptocurrency wallet in order to act as collateral for network security. Most staking systems require all their node operators ...
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Centrality - Medium