How to Mine ADA: A Complete Guide to Cardano Staking
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Summary
Cardano (ADA) operates on a proof-of-stake consensus algorithm, whereby nodes are selected to create new blocks based on the amount of ADA they stake (delegate) within the network.
Unlike bitcoin, which uses proof-of-work, cardano does not utilise miners and specialised hardware for transaction processing and blockchain maintenance.
Instead, cardano holders can stake their coins and earn rewards for helping to secure the network, whereby these stakers are incentivised to validate transactions and maintain the blockchain.
Staking ada is a less energy-intensive and more eco-friendly way to secure a cryptocurrency network compared to proof-of-work.
Wallets that support staking include Daedalus, Yoroi, Nami Wallet and Adalite.
Rewards are distributed based on the amount of ada staked and the duration of the staking period.