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.

Stake pools may be either public or private. A public stake pool is a Cardano network node with a public address that other users can delegate to, and receive rewards. Private stake pools only deliver rewards to their owners.

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 delegate to public stake pools if they wish to participate in the protocol and receive rewards, but do not wish to operate a Cardano network node themselves.

The more stake that is delegated to a stake pool, the greater chance it has of being selected as a slot leader. Each time it is selected and produces a block that is accepted onto the blockchain, it is rewarded, and these rewards are shared between the stake pool operator and stake pool delegators.

Extensive research and development has gone into ensuring a fair, competitive marketplace that proportionately incentivizes participation, and rewards the investment of time, energy, and resources. The key technical parameters influencing stake pools and the rewards received are:

There are two ways an ada holder can earn rewards: by delegating their stake to a stake pool run by someone else, or by 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 that it earns are shared between everyone who delegated their stake to that stake pool.

Daedalus Wallet (Video)

Daedalus wallet is a desktop, full-node hierarchical deterministic (HD) wallet for ada cryptocurrency, bundled with full Cardano node. Daedalus wallet runs on Windows, Mac, and Linux operating systems.

Yoroi Wallet - Chrome  (Video)

Yoroi is a lite hierarchical deterministic (HD) wallet for ada cryptocurrency, running as a Chrome or Firefox extension. It connects to a full Cardano node hosted by a third party (Emurgo). Yoroi allows for instant initial setup, quick and easy operation with the minimum usage of system resources.