Cardano is a proof of stake system, so holding stake, i.e. owning Ada, means more than holding Bitcoin means for the Bitcoin protocol.
You may choose to delegate your stake to a "staking pool". By being part of a larger pool all participants share in the cost of keeping a node up and running all the time and also share chances of being the slot leader. Rewards and running costs are shared with all participants in the pool.
When users delegate their stake, they pass their right to protocol participation on to a stake pool operator, and a delegation certificate is created on-chain to record that they have delegated their ADA. It’s important to note, that whilst users are delegating their right to protocol participation on to a pool operator, they are still granted full monetary rights over their ADA holdings — as ADA is a functional means of exchange in it’s capacity as a functioning cryptocurrency.
Cardano uses a new proof of stake algorithm called Ouroboros, Ouroboros eliminates the need for an energy-hungry proof of work protocol, which stands as a barrier to blockchain scaling up for much wider use. Ouroboros is the first proof of stake protocol that has been mathematically shown to be provably secure. The level of security demonstrated by Ouroboros compares to that of Bitcoin’s blockchain, which has never been compromised.
Participating in the Cardano protocol incurs far less computational costs than participating in Bitcoin. Nevertheless, having slot leaders online when it is their turn to create a block or to participate in the election process is important for both the security and efficiency of the protocol. Thus it is our goal to keep our server on-line 24/7/365 with backup (if possible!) in case of downtime. There will be a link here with available statistics.
This is yet to be determined and may be variable depending on things ;-)
The reward sharing policy of the stake pool will be transparent to potential participants
How Staking Works
What is Cardano? https://www.cardano.org/en/what-is-cardano/
What is Daedalus? https://iohk.io/projects/daedalus/
Design Specification for Delegation and Incentives in Cardano
About how much is the staking reward?
Cardano Forum https://forum.cardano.org/
Cardano Telegraph https://t.me/CardanoGeneral
The Cardano Effect https://www.youtube.com/channel/UCdsCDVHKVIuTlziDW7Wg3NQ
Daedalus is a full node, meaning you must download the entire blockchain to use it. It's developed by IOHK, the blockchain research and development company behind Cardano. It is very safe. Only you control your keyes.
With Daedalus you can create paper wallets. In my opinion this is probably best option for security until Ledger Wallet becomes available. Print the pdf Verify the key, and place a copy of the PDF in your Safe Deposit box. (And maybe another in your other SDB ;) )
LedgerHQ just recently announced support for cryptography required for Cardano. Now there is a dedicated team of people working on Ledger support for Yoroi and then Daedalus. We were already preparing for the support, but it was impossible to finish without this cryptography on Ledger side. Now it's in further progress.
Yoroi is a light wallet for Cardano. It’s simple, fast and secure. You can stake right from Yoroi. As a Chrome plugin, Yoroi looks to be a day to day wallet for a Cardano user.
Innovative and Fast! Yoroi is a light wallet for Cardano. There is no need to download the blockchain when you open the wallet. So you are ready to send and receive transactions right away.
Secure with High-quality code, thoroughly tested, security audited and more to make sure that Yoroi works flawlessly. Private keys are encrypted and never shared with Yoroi servers or third party providers.
You will soon be able to recreate paper wallets and stake from Yoroi. You can also use Yoroi with Trezor
Sign up so we can let you know when we go live!
Your Ada currency should never leave your wallet when you stake with us or anyone else. By staking you are only delegating the slot production rights of your Ada holdings to the chosen pool and you continue to keep your Ada currency in your wallet. Never send Ada currency to any pool. If a pool asks you to send your Ada to their wallet, it is a scam.