Staking & Delegating
Staking and Delegating
Staking is the process where a validator is selected to create a new
block in the chain to maintain the network. Every time you delegate
to a stake pool, you increase the pool chances to be chosen to
create blocks. Consequently, you're also increasing its number of
rewards — meaning: higher rewards to the delegators.
Delegating is like earning interest on your balance, in your bank account, but with cryptocurrency. You will earn a return on your investment.
A stake pool is a network node with a public address for users to delegate to. Stake pools are run by a reliable operator, an individual or business with the knowledge and resources to run the node on a consistent basis. ADA holders can then delegate to stake pools if they wish to participate in the protocol and receive rewards, but do not wish to operate a network node themselves.