Staking is a fundamental concept in cryptocurrencies and Web3 technology. It allows users to actively contribute to the security and integrity of a blockchain network. Unlike the energy-intensive Proof of Work (PoW) system used by Bitcoin, Cardano employs a more eco-friendly consensus mechanism called Ouroboros, which relies on staking.
How Staking Works in GeroWallet
GeroWallet is easy to use and simplifies staking, making it straightforward and accessible for both beginners and experienced crypto enthusiasts. Here are the key points:
Stake Pools
Users can delegate their ADA to stake pools directly within the GeroWallet app.
Stake pools are groups of ADA holders who combine their resources. Doing so increases their chances of being selected to validate transactions and create new blocks on the Cardano network.
The GERO pool is a recommended choice for new staking users. It’s a great starting point for those who want to participate without delving too deeply into the technical details.
Delegation
Delegating ADA is straightforward. Within Gerowallet, users can choose a stake pool with just a few clicks.
When you delegate your ADA to a pool, you contribute to its overall staking power. The more ADA delegated to a pool, the higher its chances of being chosen to create blocks.
Rewards
Staking rewards are automatically distributed to both stake pool operators and delegators.
The amount of ADA staked and the pool’s performance plays a role in determining rewards.
As a delegator, you earn a share of the rewards based on your contribution to the pool.
Gerowallet is designed to be easy to use. You'll find it simple even if you’re new to the crypto world.
By staking ADA through Gerowallet, users not only help secure and decentralize the Cardano network but also have the opportunity to earn rewards. This involvement allows ADA holders to actively participate in the growth and success of the Cardano ecosystem.
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