- Cardano’s transition from Ouroboros Classic to its Ouroboros Genesis consensus algorithm enables staking functionality for general users.
- The higher a user’s stake in a network the more likely they are to find the next block.
Cardano’s transition from Ouroboros Classic to its Ouroboros Genesis consensus algorithm enables staking functionality for general users. This gives ADA holders an opportunity to earn rewards proportional to their stake. Cardano recently taught their users how these staking pools will work.
According to the IOHK blog:
“In a proof of stake (PoS) blockchain protocol, the ledger is maintained by the stakeholders that hold assets in that ledger. This allows PoS blockchains to use less energy compared with proof of work (PoW) or other types of blockchain protocols.”
Stake pools allow pool users to combine their staking powers and stake as a larger entity. The block reward given to the slot leader of a stake pool is shared among members of a stake pool. The owner of the stake pool is given a special bonus as a reward for their services.
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