How does staking Ethereum differ from mining in the world of digital currencies?

1 answers

• Dec 16, 2021 · 3 years ago
  Staking Ethereum and mining are two different ways to secure and validate transactions on the blockchain. While mining requires solving complex mathematical puzzles, staking involves holding a certain amount of cryptocurrency in a wallet. Stakers are chosen to validate transactions based on the amount of cryptocurrency they hold, and they are rewarded with additional coins for their contribution. The key difference is that mining requires expensive hardware and consumes a significant amount of energy, while staking can be done with a regular computer and consumes much less energy. Staking is also seen as a more sustainable option as it reduces the environmental impact associated with mining. However, staking carries the risk of losing a portion of the staked coins if the validator behaves maliciously or fails to perform its duties properly.
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