Stake

In the context of blockchain, "staking" refers to the process of holding and locking up a certain amount of cryptocurrency as collateral in order to participate in the validation of transactions and the creation of new blocks in a proof-of-stake (PoS) consensus mechanism. By staking their coins, individuals or entities known as "validators" are able to earn rewards for their role in maintaining the integrity of the blockchain network.

In a PoS consensus mechanism, instead of validating transactions and creating new blocks through solving complex mathematical problems as in the case of Proof-of-Work(PoW), validators are chosen to create new blocks and validate transactions based on the number of coins they hold and are willing to "stake" as collateral. The more coins a validator stakes, the higher the chances of being chosen to validate transactions and create new blocks, and therefore, the higher the rewards.

When a user stakes their cryptocurrency, they are essentially locking it up for a certain period of time, during which they cannot access or spend it. This is done to ensure that validators have a vested interest in maintaining the integrity of the network and are less likely to engage in malicious behavior. The duration of time can vary depending on the blockchain network and the amount staked.

It's important to note that staking can also be done by delegating the staking process to a validator, this is called "delegated staking" or "staking as a service", in this case, the user's coins are still locked but the user is not the one validating transactions, the validator does it on their behalf.