Staking vs Lending
With the recent Gemini Earn program halted withdraws and Genesis Trading rumors of bankruptcy, let’s explore the difference between staking and lending in crypto.
Staking is a type of consensus that allows participants to enter the validation process through Proof of Stake. The staking process enables the holder of the token to validate transactions while holding the token. In some sense, holders of token is a proof of ownership and rewards of such holding status. Lending is another form of cryptocurrency reward where lenders will take their loan from a third party, who in turn will repay the loaner’s loan. Let’s explore the differences between them, each with separate definitions and examples.
What is staking?
Staking is the process of rewarding participants to hold and validate blockchain transactions in some sense of the ownership and a reward system of holding such token.
Cryptocurrency lending
A user creates a virtual account with a digital wallet called a “crytpo wallet.” The wallet can hold cryptocurrencies, such as…
