EigenLayer is a layer 3 blockchain protocol designed to enhance the scalability, interoperability, and functionality of existing layer 1 and layer 2 blockchain networks. It aims to address the limitations of current blockchain infrastructure by providing advanced features such as off-chain computation, cross-chain communication, and decentralized finance (DeFi) tools.
Restaking, in the context of EigenLayer, refers to the process of staking or re-staking tokens to participate in the network's consensus mechanism and governance processes. Token holders can stake their tokens as collateral to become validators or delegators, depending on the specific consensus mechanism employed by EigenLayer.
Validators are responsible for validating transactions and securing the network by participating in block production and consensus activities. They are rewarded with additional tokens for their services. Delegators, on the other hand, delegate their tokens to validators and receive a portion of the rewards generated by the validator they have delegated to.
Restaking allows token holders to actively participate in the network and contribute to its security and governance while earning rewards in return for their contribution. It also helps to maintain a healthy ecosystem by ensuring the active participation of stakeholders in network operations.
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