Staking, not too far away Mining will be a concept that you will probably hear more about.
As you know Bitcoin and I Ethereum (Proto of Work) as a mining algorithm. The hardware power is utilized to extract the crypto digits with the PoW algorithm. This results in too much electricity consumption. Given that the world’s energy sources are not limitless, it can be assumed that the proof of work may be a major problem in the future, if not now. From this, Ethereum is trying to pass the proof of stake from the proof of work in its algorithm.
In the proof of work algorithm, hardware was used to provide transaction approval. Proof of stake requires transaction confirmation, buying crypto money and keeping them in the wallet for a certain period of time. It resembles a fixed deposit in non-digital currency. In the Proof of stake, people are rewarded with additional coins as if the interest rate at the end of the period of the projected interest in the deposit contract is reached. You are rewarded for supporting the network by keeping coins in your wallet. Therefore, how much coin you hold in your wallet will be awarded as additional coins will increase in that proportion. Staking is short.
Note: A detailed guide about staking, including cryptographic fees that can be staked and how much they earn, will be published later.