Heard on the Block: "staking"

Wednesday, February 15, 2023 by Snacks

🤑 When you put your money where your mouth is…

Proof-of-stake blockchains like ethereum rely on people called validators to process transactions and keep the chain honest. But first validators must lock up crypto as collateral in a process called "staking." The idea: validators are less likely to do something shady if their coins are on the line. Last week, after SEC Chair Gary Gensler said that companies offering staking services must comply with securities laws, Coinbase argued staking's not a security.

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