Being the first proof-of-stake blockchain platform to be created, Cardano is based on peer-review research and has been developed using evidence-based methods. It combines pioneering technologies to provide unparalleled security and sustainability to decentralised applications, systems, and societies. Together, Cardano and its team of top-notch engineers seek to enable positive progress and change by redistributing the power that’s currently in the hands of unaccountable structures to the masses.
The platform is named after Gerolamo Cardano — an outstanding Italian mathematician, engineer, philosopher, doctor and astrologist of the XVI century. It was created by the company IOHK: Input Output Hong Kong (currently known as Input Output Global). A key figure is Charles Hoskinson, its CEO. Charles is present in the video ,providing a detailed 50 minutes explanation of Cardano in this section. It has its own cryptocurrency called ADA, token symbol ₳.
Ada is the native token of Cardano It is named after Ada Lovelace: a 19th-century mathematician who is recognized as the first computer programmer, and is the daughter of the poet Lord Byron.
ADA (₳) is the native token of Cardano. This simply means that ADA is the cryptocurrency run by the Cardano system. It is named after Ada Lovelace — a 19th-century mathematician who developed the first algorithm that could be executed by a machine. She was the daughter of the poet Lord Byron.
1 ADA = 1.000.000 Lovelace
Lovelace is the smallest unit of ADA, equivalent to one millionth of one token. A Lovelace is to ADA what a Satoshi is to Bitcoin. 1 ADA = 1,000,000 Lovelace
ADA is a digital currency. Any user located anywhere in the world can use ADA as a secure exchange of value – without requiring a third party to mediate the exchange. Every transaction is permanently, securely, and transparently recorded on the Cardano blockchain.
Every ADA holder also holds a stake in the Cardano network. ADA stored in a wallet can be delegated to a stake pool to earn rewards – to participate in the successful running of the network – or pledged to a stake pool to increase the pool’s likelihood of receiving rewards. In time, ada will also be usable for a variety of applications and services on the Cardano platform.
What is a stake?
ADA held on the Cardano network represents a stake in the network, with the size of the stake proportional to the amount of ada held. The ability to delegate or pledge a stake is fundamental to how Cardano works.
There are two ways an ada holder can earn rewards: by delegating their stake to a stake pool run by someone else, or running their own stake pool. The amount of stake delegated to a given stake pool is the primary way the Ouroboros protocol chooses who should add the next block to the blockchain, and receive a monetary reward for doing so.
The more stake is delegated to a stake pool (up to a certain point), the more likely it is to make the next block – and the rewards are shared between everyone who delegated their stake to that stake pool.
What is stake delegation?
Delegation is the process by which ada holders delegate the stake associated with their ada to a stake pool. It allows ada holders that do not have the skills or desire to run a node to participate in the network and be rewarded in proportion to the amount of stake delegated. Typically, this is in the range of 3-5% per year.
What is a Stake Pool?
Stake pools are run by stake pool operators. These are network participants with the skills to reliably ensure consistent uptime of a node, which is essential in ensuring the success of the Ouroboros protocol and the Cardano network as a whole.
The protocol uses a probabilistic mechanism to select a leader for each slot, who will be expected to create the next block in the chain. The chance of a stake pool node being selected as slot leader increases proportionately to the amount of stake delegated to that node. Each time a stake pool node is selected as a slot leader and successfully creates a block, it receives a reward, which is shared with the pool proportionate to the amount each member has delegated. Stake pool operators can deduct their running costs from the awarded ada, as well as specify a profit margin for providing the service.