What is Staking?
Cardano uses a proof of stake system which can be compared to a lottery. Each ADA that is being held is considered a lottery ticket. Thus, the more ADA you have the more chances you have to win the lottery. The winner is granted the right to make the next block for the blockchain, which then results in earning ADA as a reward for making a new block.
How to Stake?
There are two ways to stake in Cardano. The first is to create your own stake pool, which means you need a computer that is available 24/7. In addition to that, you need to keep your system safe and always updated. If you want to participate in the lottery but you don't want to own a stake pool yourself, then the second staking method comes into play. With this method of staking you give away your rights(delegating) to participate in the lottery. After each epoch is done you get a percentage of the total rewards given to the stake pool. The percentage of the rewards depends on how many lottery tickets you delegated to the stake pool. It is important to note that despite giving away the rights of your lottery tickets, the ADA in your wallet is never touched or moved and can never be moved by anyone besides you. If there are more questions to staking, epochs, or/and delegating then it is recommended to take a look at our Cardano section.
Name: Decentralation Is The Future
Pledge: 50k ADA