Cardano is one of the blockchains that works on a stake system. Those users who keep their ADA coin in the Cardano network are stakeholders. In other words, their coins act as stakes and the size of stake os relevant to the amount of holding. Cardano lets users delegate or pledge their ADA holdings and earn rewards.
Is it possible to stake on Cardano?
Staking on Cardano is possible because its blockchain uses the proof-of-stake (PoS) consensus mechanism. This refers to the system the blockchain uses to ensure all network participants act honestly and in the best interest of the network.
What is the difference between Ada and Cardano stake pools?
Those Cardano users that prefer running stake pools can act as pool operators. They will have the chance to receive pledges and delegations but have to pay the reward stakes to users. ADA holders can use multiple wallets to participate in stake pools. They have to delegate their ADA holding to the preferred pool.
What does Ada mean on Cardano?
Ada held on the Cardano network represents a stake in the network, with the size of the stake proportional to the amount of ada held. The ability to delegate or pledge a stake is fundamental to how Cardano works.
