In other words — staking allows investors to lend their coins to a developer to support the operations of a blockchain network. New coins are provided to them as a reward, says RockX CEO Zhuling Chen.
Inflation is on the rise and investors are facing increasing pressure to find more ways to hedge their investments. Aside from the traditional methods of hedging inflation such as investing in the stock market, gold and real estate, some people are turning to alternative investments, such as staking cryptocurrencies to earn steady passive incomes.
Staking refers to locking one’s cryptocurrencies in a proof-of-stake (PoS) blockchain for a certain period of time. These locked assets are used to achieve consensus, which is required to secure the network and ensure the validity of every new transaction to be written to the blockchain. In return, those who stake their cryptocurrencies receive returns in the form of “block rewards”, or new coins from the network.
