Staking rewards left in the rewards section of your wallet count towards your total balance staked. They therefore automatically compound without the need to withdraw them to the main part of your wallet. Each time you withdraw your staking rewards you will pay a transaction fee, which at the time of writing this is around 0.17 ada. This might not seem like ...
ISPO is an acronym for Initial Stake Pool Offering. There are two main types but in both cases they enable projects that are building on Cardano to distribute their tokens to stake pool delegators. The tokens that are distributed generally have some sort of utility such as governance privileges in the project. The tokens can be held by the delegator for the ...
There are many reasons you may want to move your ₳ to a new wallet, for example you may have just bought a hardware wallet to better secure your ₳ or your seed phrase may have become compromised.
If you unstake (or deregister your stake key) to claim back the 2 ₳ stake key deposit you will loose any pending rewards for the current and previous epoch. You wi...
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...
Both coins and tokens represent a unit of cryptocurrency on a blockchain. Yet there is a difference between the two – a ‘coin’ has its own native blockchain whereas a ‘token’ is created on an existing blockchain.
Ada (‘Ticker: ADA’) is the native cryptocurrency on Cardano and is the only currency used on Cardano to pay fees, make deposits and distribute re...
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.
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...
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...
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...
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...
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...
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...
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...
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.
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...
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...
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).
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...
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.
'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...