Your first day in Cardano? Let’s see together how to create a Wallet and stake your ADA
What is a Cardano Node?
Cardano node is a gate to interact with Cardano blockchain. It can be used to create a wallet, send ADA, mint NFTs and interact with smart contracts.
You can run a cardano node in a VPS and use it whenever you need 7/7 24/24, let me share with you my experience and how to avoid common mistakes that could make you lose precious time.
What is an NFT?
A non-fungible token (NFT) is a unique and non-interchangeable unit of data stored on the blockchain.
NFTs can be used to represent easily-reproducible items such as photos, videos, audio, and other types of digital files as unique items (analogous to a certificate of authenticity), and use blockchain technology to establish a verified and public proof of ownership.
Why should I buy an NFT if I can just download the file?
Even if you can download the file you will not be able to copy the digital signature and sell it or prove the ownership.
Blockchain is the one granting the ownership, no third parties, completely decentralized.
What is staking?
Anyone with ADA can participate in writing the Cardano blockchain, in proportion to the quantity of ADA held. The more ADA you have, the more blocks you will be asked to sign. As an incentive for ADA holders to participate, each signed block entitles you to a reward (in ADA).
What is delegating?
In order to be selected to sign a block, one should run a node with a fully synchronised blockchain and stake their ADA in it. For instance, this is possible by using a Daedalus wallet. The more ADA is being staked, the higher is the chance that this wallet will be selected by the Ouroboros protocol to sign the block. Delegation is an act of handing over the rights to mint the blocks with your ADA. What is very important here is that you never give up control of the assets: they always stay with you, all you are doing is giving the right to use its signing power.
What is a Staking pool?
A stake pool is a fully synchronised Cardano node which represents the collection of ADA staked by a group of individuals. Anyone can participate in an existing stake pool or run their one. Stake pools are needed, as they increase the chance of being selected for signing a block, as they allow a bigger amount of ADA to be staked. Usually a community of delegators — actors, delegating to the pool — is naturally formed, being united by the same brand.