There are different forms of reaching consensus, and therefore consensus algorithms. Beside Proof of Work (PoW), there is also the so called Proof of Stake (PoS) - These are the two best known and most important ways to build consensus in a decentralized blockchain network - however there are also similar variations within the ecosystem. When using Proof of Stake it means locking coins or tokens into so called “nodes” to help verify transactions for cryptocurrencies with Proof of Stake consensus mechanisms. Stakers earn staking rewards for providing this service. The rewards differ from coin to coin.
How does it all work?
At a very basic level, “staking” means locking your crypto assets in a proof-of-stake blockchain for a certain period of time. These locked assets are used to achieve consensus, which is required to secure the network and ensure the validity of every new transaction to be written to the blockchain. Those who stake their coins in a PoS blockchain are usually called “validators.” For locking their assets and providing services to the blockchain, validators are rewarded with new coins from the network.