In the proof of Work mechanism, miners can combine their hashing power to form mining pools to increase their chances of getting rewarded. Similarly, in the proof of stake and some other models, the stakeholders in the network can combine their resources to increase their chances of getting rewarded.
Multiple stakeholders can combine their computing resources and maximize their chances of being rewarded. To put it another way, they pool their staking power in the process of verifying and validating new blocks in order to increase their chances of winning block rewards.
The staking pool has a pool operator and stakeholders who can hold their coins either in a locked address on the blockchain or on a hardware wallet.
Staking pool rewards are lesser compared to solo staking as the reward gets split. However, it is a source of passive income being generated without having the need to set up and run a validating node individually.
