Can you explain the concept of staking in Cardano?

1 answers

• May 08, 2022 · 3 years ago
  Staking in Cardano is a fundamental part of the ecosystem's design. It allows ADA holders to actively participate in the network's governance and decision-making processes. When you stake your ADA, you are essentially entrusting it to a stake pool, which represents a group of validators responsible for maintaining the blockchain. By delegating your ADA to a stake pool, you contribute to the pool's overall stake, which increases its chances of being selected to create new blocks and earn rewards. Staking also helps ensure the security and decentralization of the Cardano network, as it encourages a wide distribution of stake among different pools. In summary, staking in Cardano empowers ADA holders to have a say in the network's operations while earning passive income in the process.
  792

  396