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This is just an area where you can learn about blockchains and Cardano. Yes, there are lots of places on the internet you can do that, but I find a lot of it complicated and hard to navigate. Here, I keep it simple. I am trying to bust the jargon.


Cardano uses a Delegated Proof Of Stake model. What that means is that you don't have to hold the full blockchain and create new blocks to get your rewards. You just delegate the job to someone else and they do it then pay you a commission. You just hold the ADA. Its easy, you don't have to expose your private keys, so there is no risk. Here are a few general knowledge facts about staking:

Staking Rewards

Staking rewards are not defined yet, so you have to wait to see how much you will get. Different pools might pay different percentages. There is a full technical specification of the the whole process and everything that you need to to know in huge detail in the technical report. If thats a bit heavy for you there's a much more accessible staking rewards calculator from antipalos. It will tell you what you might get, and why.


Staking FAQ

A few things most Cardano fans already know about delegating your stake:

The Daedalus Wallet

Daedalus is one of the wallets available to hold ADA. It is one of the earlier options and while it had a few glitches in its early days a lot of work has gone in to making it fully stable now. Versions are available for Windows, Mac, and Linux. The most important thing about Daedalus is that it holds a full copy of the blockchain, and soon you will be able to either create a stakepool or join someone else's stakepool using it. It is built on Electron, which is a web based toolset using HTML, CSS, and JavaScript, but it runs locally, without a browser. It doesn't have support for hardware wallets yet, so if you have one of those you should check out Yoroi. Otherwise, download here and get ready to join my stakepool.


The Yoroi Wallet

Yoroi is a web based light wallet which runs as a Google Chrome extension. No need to download the blockchain. Despite being a light wallet, it might be the most secure option because it supports both the Trezor and Ledger hardware wallets. Since it runs as a Chrome extension it also can see the web pages you are on, so in the longer term (when we get smart contracts) it might be able to interact, make payments, etc. For now it is just a wallet. I use mine with Ledger and its good, very easy to use. Download here.

Shelley

Shelley is the codename for the much awaited version of Cardano which supports staking. Until Shelley comes out we are on Byron, which doesn't support staking and is not decentralised. While we are on Byron the new blocks are created by a few servers maintained by IOHK, so we are in their hands, but when Shelley is released the new blocks will be created by thousands of servers running all over the world. The rules for what rewards are available to stakepools will be adjusted so that, for maximum return, the number of pools will be about a thousand. Its due any time now, so we are still waiting to see how many stakepools there are and whether they give reliable rewards while supporting the protocol honestly.


Ouroboros

Ouroboros is the name of the consensus protocol used by Cardano. People in crypto get used to words like "consensus protocol" because it gets talked about a lot. It comes from the fact that whe you try to run a currency on lots of computers at once they all have to talk to each other and agree who has the money, but they can't trust each other, because if they could get away with it they would all say they had it. Another term often mentioned here is Byzantine Fault Tolerance. This comes from an ancient battle in the Byzantine Empire when a lot of Generals all attack a single fortress at once, and have to agree with each other when to attack, but also have an incentive to tell lies since the guy who goes first gets a hard time. The idea is to punish people who lie by refusing to talk to them for a while, and find out who is lying by assuming more than 50% of people are truthful. It all works pretty well but with computers there is the "nothing at stake" problem as well. This is where people program computers to pop up and dump massive amounts of false data into the system, and they can do it quicker than the honest actors can clean it up. The solution here for Bitcoin was to demand a solution to a complex maths problem, so spam comes in either very slowly or with incorrect answers and is easy to weed out. Staking solutions for some coins can suffer from the nothing at stake problem, because you have to check the blockchain to verify that the held coins exist, but Cardano avoids it by using Staking Pools. You can't add to the blockchain unless you are a registered pool, and if you go to the trouble of getting registered you are highly likely to stay honest. If you don't that that thing where other nodes won't talk to you kicks in and your pool gives poor rewards. Nobody wants to use pools that have poor rewards, so you lose money. Holders of Cardano choose a profitable pool to get the rewards from their stake but that pool has to be online and ready to create a block if their number comes up. This also supports higher speeds, since popular staking pools will stay online as close as 100% of the time as they can. There's more details about this in my Lexicon.


This website was created by Kevmate. Its all my own work. Contact me by emailing me at kev@kevmate.com