What is stake atom and how does it work in the world of cryptocurrency?

3 answers

• Holman VendelboSep 03, 2024 · 9 months ago
  Stake atom, also known as ATOM, is the native cryptocurrency of the Cosmos network. It operates on a proof-of-stake (PoS) consensus mechanism, which means that instead of miners, validators are responsible for validating transactions and creating new blocks. Validators are chosen based on the amount of ATOM they hold and are willing to 'stake' as collateral. The more ATOM a validator holds, the higher their chances of being selected to validate transactions. Stake atom allows users to participate in the governance of the Cosmos network and earn rewards by staking their tokens.
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• Arsyada Daffa Miftahul sidiqJan 08, 2022 · 3 years ago
  Stake atom is a cryptocurrency that utilizes a proof-of-stake consensus mechanism. Unlike proof-of-work cryptocurrencies like Bitcoin, where miners compete to solve complex mathematical problems to validate transactions, stake atom relies on validators who hold and 'stake' their tokens as collateral. Validators are selected based on the amount of stake atom they hold and are willing to lock up. This approach is more energy-efficient and allows for faster transaction confirmations. By staking their tokens, users can earn rewards and actively participate in the network's decision-making process.
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• Sakshi NagreJul 07, 2021 · 4 years ago
  Stake atom, also known as ATOM, is the native cryptocurrency of the Cosmos network. It is used to secure the network and facilitate transactions. Unlike traditional proof-of-work cryptocurrencies, stake atom operates on a proof-of-stake consensus mechanism. This means that instead of miners, validators are responsible for validating transactions and maintaining the network. Validators are chosen based on the amount of stake atom they hold and are willing to lock up. By staking their tokens, validators can earn rewards and contribute to the security and stability of the Cosmos network.
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