Staking, What a Concept

The last time I wrote about crypto I tried talking about how the Cardano network could help in changing the lives of Nigerians and other Africans for good. Here, I want to show you how this can be done in a small way. I hope that with each word you get to understand the impact the network can bring to our lives.

Long before we understood what trade was, we engaged in it. I dare say that trade is as old as man himself. It’s a part of human behaviour we can’t do without. Taking your time to read this post in exchange for the information it possesses is an example of trade. Another would be the time and effort you spend at work in exchange for a wage. The question now is: why do we trade? Why do we engage in this habit of exchange that somehow thrills us? Part of that answer is survival. Another? Growth.

When communities come together to create value, the community builds something that benefits every individual in it and sometimes, outside it. What’s even better? When the community’s intention is selfless rather than selfish. This enables a sense of shared reward, one built on a mutual goal. One that challenges our belief in what could be possible.

A collaborative project that has the community’s best interest at heart is Cardano. Reminiscent of Apple in the 90s, Cardano appeals to innovators, creators and visionaries who intend to positively impact the world they live in. Be it virtual or physical. Blockchain technology itself requires collaboration to work. And this collaboration, trustless as it is, can be flawed. These flaws may be difficult to re-engineer, leading to the creation of a system that works via fixing a growing problem rather than preparing solutions for future scenarios. One of Cardano’s main advantages is its leverage with its community. This intentional inclusion of making community a prime focus has shown results in the kind of minds that have been attracted to the project. It has created a community that not just loves the project but also takes part in its daily operations and growth.

Regardless of the objectives of the community, it can’t be sustained on good will alone: bills have to be paid and people have to survive. Your question now may be “How does Cardano provide incentives for participating in the network’s operations and overall growth?” There are different ways the network rewards its participants. One of them is through staking.

Staking (delegating) is a concept where you volunteer your coins to take part in the operations of the blockchain. This act doesn’t go unrewarded. You are given rewards for participating in the network’s operations over a period of time. These rewards come in the form of ADA. ADA, named after the famous mathematician, Ada Lovelace is the native currency of the Cardano network. The duration with which you get rewards varies from blockchain to blockchain. For the Cardano network, this happens every 5 days(1 Epoch).

So, how do I participate in staking?

It’s simple.

  1. Open a wallet with either Daedalus or Yoroi apps. Daedalus only has a desktop application for now. So stay away from any mobile app that claims to be Daedalus.
  2. Once you have deposited ADA to your wallet, look for a stake pool to stake your ADA in.
  3. Delegate (stake) your ADA with a stake pool.
  4. Wait for your rewards to start hitting after 3 epochs (15 days).

If you would like to learn more about staking on the Cardano network, you can check here.

The Cardano network rewards two types of people in this staking business. There’s the delegator — the person who delegates (stakes) his ADA in a stake pool. Then there’s the stake pool operator — the creator and manager of the stake pool. This stake pool operator gets rewarded for operating a stake pool that participates in the network’s operations. A major advantage of staking on Cardano is the ability to take out your coins at any time. Another advantage is that it doesn’t require a large amount of ADA to participate in it. Everyone is invited.

The Cardano network has provided opportunities to create wealth by participating in its network. The rewards are consistent and are based on the performance of the stake pool you delegate with. This is one of the ways the Cardano community has built a network that has over 332,665 wallets with 70% percent of the wallets delegating their ADA. This is better than holding on to your ADA and waiting for it to appreciate in value.

To create wealth, you’ll need to delegate your money or time or even both to achieve that aim. Why not do it by delegating your coins with a stake pool?

My aim remains to spread the word about what Cardano has brewing for my fellow Nigerian and African brothers and sisters. To spread a vision of hope and positive change. I hope this post meets you in the right mood. If it doesn’t, I hope it helps improve it.

Till next time, stay well.

Want to talk about crypto adoption in Africa? Hit me up on Twitter.

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Abubakar Oshomah Abdulwahab

Abubakar Oshomah Abdulwahab

Part human, part mutant, full time go getter. Just trying to make sense of everyday. May drop musings about life once in a while.