Definition ∞ Decentralized staking involves participating in a Proof-of-Stake blockchain’s validation process without relying on a single, centralized entity to hold or manage the staked assets. Participants delegate their tokens to a network of independent validators, or operate their own nodes, thereby contributing to network security and consensus. This method distributes validation power across many individuals, reducing single points of failure and enhancing the network’s resilience. Rewards are earned for securing the network.
Context ∞ Decentralized staking is a critical component for the security and integrity of many modern blockchain networks, particularly those transitioning to or operating on Proof-of-Stake mechanisms. Concerns often arise regarding the concentration of staking power among a few large entities or staking service providers, which could compromise decentralization ideals. News reports frequently cover innovations in liquid staking protocols and the ongoing efforts to make staking more accessible and distributed to a broader participant base. Regulatory bodies are also examining the classification and oversight of staking services.
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