# What is Stader By [EvgeniyP](https://paragraph.com/@evgeniyp) · 2023-03-05 --- In order to understand what Stader is and how it works, first you need to understand what staking is, and now we will go through the main aspects, let’s go I will try to express myself in simple words, since a large number of new people and I am for the mass adoption of cryptocurrency) Staking is the process of holding funds in a cryptocurrency wallet to support all operations on the blockchain. Essentially, it consists of locking a certain amount of cryptocurrency in a wallet in order to receive rewards. The concept of staking is closely related to the Proof of Stake (PoS) mechanism. This variant of transaction validation is used in many blockchains that are based on PoS or one of its many variants. It's very simple, we need to have cryptocurrency on the wallet and validate it to the validator. But looking ahead a bit, it is not safe for every validator to validate their funds, we will discuss this later. We understood the main aspects, but now I think it’s worth focusing on Stader and understanding how this mechanism works there. The main difference from classic staking is that the Stader technology develops a block staking structure, you do not need to look for a validator in each blockchain, everything will be at hand in one place. For the foreseeable future, every future blockchain will use Stader to build their staking infrastructure. Thus, staking will become easy easy, for us ordinary users. Thus, in all the variety of blockchains, and even more so the variety of staking, Stader acts as a cross-staking from one application. Summary: And it is really very cool! For you and me, this simplifies our life at times, you don’t need to constantly monitor blockchains in search of a stake, you don’t need to go to different platforms and check the stake - you can monitor everything from one place. And of course, by placing staking rewards on any protocol, receive airdrops with a single click. Now let's get back to security. I think many of you have heard about the hacking of smart contracts and the loss of all staker’s funds. Stader has gone a long way in this direction as well, and it shares the base capital and rewards under different contracts. This ensures that the underlying capital is always isolated from interacting with other protocols. Stader protocols have been audited by such major auditors as: Halborn Audits, PeckShield Audits, BlockSec Audits, ImmuneBytes Audits, OSEC Audits Due to the fact that Stader smart contracts are designed in a modular way, it opens the possibility for others to interact with any of our smart contracts and create additional staking use cases, and here are some examples: * The other party can use the Stader Pools contract to create their own pool of validators. With the appropriate geography to comply with tax and regulatory requirements, allowing users to place bets with a single click. * Networks can use the pool contract and include a very large number of validators in the pool and incentivize staker’s to delegate to that pool, potentially paying higher staking rewards. * Fintech applications can use the Stader Delegator contract to enable one-click staking right in their application, making staking as a service available to all their users. * Any DeFi protocol or gaming application can be integrated with the Strategy contract. We can say that the possibilities of Stader modular smart contracts are endless in application and customization to individual customer needs. I think it’s not for nothing that such eminent funds invest in Stader, they just saw huge opportunities with this project: ![](https://storage.googleapis.com/papyrus_images/05c2b1efb7a693db7ca4be3e19d3dd30103a7b8d7ca5f609c25683d0e132bed9.jpg) In conclusion, I want to add that everything that the Stader team does is worthy of attention and more thorough study, for this you can go to the [official website](https://www.staderlabs.com/), if I were you, I would not waste time, because this is one of the few projects that really makes just a "gem" product, which in another phase of the market will show crazy results. --- *Originally published on [EvgeniyP](https://paragraph.com/@evgeniyp/what-is-stader)*