A 'staker' primarily refers to an individual or entity that stakes cryptocurrency in a proof-of-stake (PoS) blockchain system. This involves holding and locking up a specific amount of cryptocurrency to support the network's operations, validate transactions, and earn rewards. Stakers contribute to the security and decentralization of the blockchain and are incentivized to act honestly. The term can also less commonly refer to someone who bets or gambles, often informally.
Staker meaning with examples
- As a committed staker, Emily locked up a significant portion of her ETH holdings on the Ethereum 2.0 network. This not only allowed her to earn passive income in the form of staking rewards but also contributed to the overall stability and security of the blockchain.
- The large institutional investor decided to become a staker, believing in the long-term potential of the blockchain. They carefully researched different staking pools and platforms to maximize their returns while mitigating risks associated with validator downtime.
- John's small cryptocurrency holdings made him eligible to be a staker, but instead of risking the investment, he placed his holdings in a decentralized finance pool and earned interest without the risks that come with staking directly.
- A software engineer at the company said that the blockchain’s design incorporates safeguards to prevent malicious stakers from gaining control of the network, while rewarding the stakers who act as the source of validation.