Lesson 01

The Proof of Participation

Staking vs PoW

Blockchains like Ethereum or Solana operate on Proof of Stake (PoS). Instead of mining rigs, the network is secured by people who "lock" their coins (Staking).

By staking, users support this security layer and receive a share of the rewards generated by the network.

Real-Life Analogy

Maintaining the Digital Highway

Staking is like helping maintain a digital highway. Transactions are vehicles using the road, and validators keep the traffic safe, organized, and valid. Users pay "tolls" (transaction fees) to travel on it, and those tolls are paid out as rewards to the people who lock their coins to maintain and secure the road.

Proof of Stake Network

Your Node

Your coins are idle. The network is secured by others.