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Why is Cardano called ‘the green blockchain’?
People say Cardano is ‘green’ because it is a proof-of-stake blockchain that uses little energy and runs on basic hardware. Proof-of-work blockchains are more energy-intensive and generate large amounts of hardware waste.
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What is Cardano's monetary policy?
Cardano's monetary policy addresses two issues: The necessity to offer rewards for people who participate in the network Funding the treasury Rewards The expansion and future improvement of the Cardano blockchain will be greatly influenced by its community, who need to be incentivized through rewards to participate in Cardano’s development. Staking rewa...
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What other wallets support staking?
You can stake your ADA by using Daedalus or Yoroi wallets, products created by founding entities IOG and Emurgo respectively. You can also choose from a growing range of other wallets, including: Flint Nami Gero Exodus Adalite Typhon Eternl NuFi Hardware wallets Ledger and Trezor can also be used. Note that some of them won't let you choose the poo...
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What is EUTXO?

EUTXO stands for Extended UTXO model. Cardano's EUTXO combines and matures Bitcoin's security and Ethereum's programmability. This model is vastly superior to the account-based model used by other blockchains because it ensures: Enhanced security: every transaction uses a different address, which makes it impossible to track the address or find out the user...
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What is the Cardano network?
The Cardano network is a technical infrastructure combining Cardano nodes and their relative interactions in one unified system. It consists of a collection of nodes that communicate with each other to maintain the distributed ledger. These nodes validate blocks, add blocks to the chain, and distribute transactions. The networking layer is the driving force...
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What is a cryptocurrency?
A cryptocurrency is a digital asset, which is stored on the ledger and is designed to serve as a medium of exchange for goods or services. It is otherwise called crypto. Blockchain ledgers serve as the underlying technology for cryptocurrency creation in a decentralized environment. Blockchain protocols use rigorous cryptography techniques to enable the min...
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What is a blockchain?
A blockchain, also known as a distributed ledger, is a digital ‘book’ of records. Unlike traditional financial systems, blockchains are decentralized and are not regulated by any central authority. In a blockchain, nodes (people's computers) agree on the validity of any given transaction using what is called a consensus mechanism. Transactions are grouped to...
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What is proof of stake (PoS)?
In proof-of-stake (PoS) blockchains, such as Cardano, stake pool operators validate network activities. Operators (or slot leaders) are elected based on their holdings (stake) in the associated cryptocurrency (ada). One of the key features of PoS is that as an operator's value increases, the opportunity to maintain the ledger also increases. This means a hi...
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What is consensus?
Consensus means agreement. A consensus protocol is a way for blockchain participants to agree on transaction validity. The consensus protocol for Cardano is Ouroboros. In a traditional setting, a central entity (like a bank) controls individuals’ funds and financial activity. This entity decides what kind of activity an individual can do, to whom they can s...
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Where do staking rewards come from?
There is a reward pot. Each epoch, all transaction fees and 0.3% of the remaining ada reserves are put into this pot. 20% of the pot reserves is sent to the treasury to support development through the Catalyst voting process. 80% is used as staking rewards. Over time, transaction fees will become the main source of staking rewards.
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What’s the difference between layer 1 and layer 2 solutions?

Layer 1, which is the main blockchain ledger, operates on the underlying consensus protocol. This layer includes protocol parameters that control capabilities such as scalability and throughput. Layer 2 is an additional, off-chain protocol that works on top of the layer 1 blockchain. Parties can securely transfer funds from the blockchain into an off-chain p...
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What is Cardano governance about?

Cardano’s decentralized governance model grants all ada holders the ability to decide what changes should be made for the ecosystem to grow and mature. Since individuals in the Cardano ecosystem are most affected by the decisions made about the protocol, it is important for them to understand how those decisions are made and how they are paid for, as well as...
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What is stake delegation?
Most ada holders do not have the knowledge or desire to run a pool, so they can delegate their stake to a stake pool. Delegation means letting the pool use the stake of owned ada. The more there is staked in a pool, the higher the rewards (until it reaches saturation).
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What is staking and delegation on Cardano?
Every ada holder owns a stake that is based on the amount of ada they have. A developer or a tech-savvy person can set up a stake pool and run it to help verify Cardano transactions and create new blocks getting rewards for this. Everyone can delegate their funds to a stake pool to earn a share of these rewards. There is no risk to this and no ada leaves you...
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What is a cryptocurrency wallet?
A cryptocurrency (blockchain) wallet is software on a mobile phone or computer that allows you to send, receive, and store cryptocurrency. On Cardano, Daedalus or Yoroi can be used to manage your ada holdings and delegate your stake.
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What are native tokens?
'Native tokens' is Cardano’s feature that enables the creation of multi-purposed assets. Users can create their own tokens that interact with the blockchain just like ada. Tokens can be fungible (interchangeable) or non-fungible (unique), and act as payment units, rewards, tradable assets, or information holders. There is no need to create smart contracts to...
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How is ada mined? What can I do with ada?
Mining ada isn't possible because mining is the feature of proof-of-work blockchains. On Cardano, owners can stake and delegate ada to earn rewards. By delegating their stake, users help run the Cardano blockchain. All rewards are distributed in ada every 5 days.
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How does Ouroboros work?
Ouroboros randomly elects a slot leader from among the stake pools to create block within a slot. A slot is the primary unit of time used by the Ouroboros algorithm. The more stake a pool controls, the greater the chance it has of being elected as a slot leader to produce a new block. When validating a transaction, a slot leader needs to ensure that the send...
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What is Ouroboros?
Ouroboros is Cardano's proof-of-stake consensus protocol. It is the first consensus protocol proven to be secure through academic peer review. The name comes from an ancient symbol that represents eternity and symbolizes the theoretical eternity of a blockchain. There have been several versions of Ouroboros: Classic (Byron phase, 2017), BFT (Byron/Shelley ph...
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How does Cardano work?
Cardano is a fully decentralized blockchain platform. This means that thousands of people’s computers (nodes) cooperate to agree if a transaction is valid. This process is enabled by the proof-of-stake consensus protocol Ouroboros. On Cardano, people can send and receive ada (Cardano’s native currency), participate in staking and delegation to earn rewards, ...
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