Solo staking is the process where a user independently participates in staking by managing their own blockchain node and supporting its operation, without intermediaries like staking pools or centralized platforms. This means the user has full control over their assets and receives rewards for confirming transactions and securing the network.

Key features of solo staking:

Full control: The participant manages the network node themselves, giving them complete control over the staking process and their assets.
Technical skill requirements: To participate in solo staking, the user must know how to set up and maintain a node, which needs to be continuously connected to the network.
Minimum coin requirements: In Proof of Stake (PoS) blockchains, such as Ethereum 2.0, solo staking requires holding a specific amount of cryptocurrency. For example, Ethereum requires 32 ETH for solo staking.
Higher rewards: Unlike staking through pools or platforms, all rewards from staking in solo staking go directly to the user, as there are no intermediaries to share the rewards with.

Advantages of solo staking:

Full control over funds: Unlike staking through pools or exchanges, the user has complete control over their assets, reducing the risk of losing access to them.
Maximizing profits: Since there are no fees for pools or intermediaries, all rewards stay with the user.
Supporting decentralization: Solo staking promotes network decentralization, as node management is distributed among a larger number of participants.

Disadvantages of solo staking:

Technical complexity: Setting up and managing a node requires technical knowledge, which may be difficult for users without experience.
High equipment requirements: The node must run continuously without interruptions, requiring reliable hardware and a stable internet connection.
Significant investment requirements: In some networks, solo staking requires holding a large amount of cryptocurrency. For example, Ethereum 2.0 requires 32 ETH.

Examples of solo staking:

Ethereum 2.0: After Ethereum’s transition to Proof of Stake (PoS), users can participate in staking by running their own validator node, which requires 32 ETH. In return, they receive rewards for confirming transactions and maintaining network security.
Tezos: In the Tezos blockchain, solo stakers, known as “bakers,” must hold a certain amount of XTZ (Tezos tokens) and run a node to participate in staking.

Conclusion:

Solo staking is a way to participate in maintaining a blockchain network and earn rewards by managing one’s own node and controlling assets. It is suitable for those with technical skills and enough cryptocurrency to participate, and who seek maximum decentralization and profitability.