Cardano is slowly transforming itself. It is currently on the road to Shelley which will allow it to introduce staking for the first time. It’s
Oroborous Genesis consensus mechanism will lead the way. The development arm of Cardano, IOHK, has been hard at work and all we can do right now is to wait with bated breath. However, before that comes on board let us quickly have a look at all the features that will come up once the integration is done.
In quite a few ways, Cardano’s staking system will be similar to any other staking system. If you use Cardano (ADA) and decide to stake it, you’ll definitely be earning a return on your investment. This in the long run, helps the network as well: staking is basically the process by which validators are selected to create a new block. The other option is in case if you don’t want to validate, you can go ahead and delegate your tokens to a staking pool, which, I must say, is a much simpler process.
However, this is where the similarities end. Unlike Ethereum, Cardano won’t offer solo staking. Individuals must either run their own pool or join an already existing pool.
And here comes the whammy from the developers. Cardano will not just be addressing support staking but it will have a unique way to do it too, unlike any other crypto. They intend to have separate keys for spending and staking. In layman terms, if you decide to stake your ADA tokens, they will never leave your wallet. Amazingly, Cardano will not lick your tokens for any length of time. You can unstake it at any given time. This is what will set Cardano apart from any one else.
However, the prevailing fear of getting too much power which would be centralised is also doing the rounds. A way though has been found.
Firstly, Cardano’s stake pools will subsequently offer lower rewards as they gradually get larger. This will encourage users to travel between pools on a regular basis, and this will in turn theoretically prevent any pool from gaining prominence. Meanwhile, there will also be a sorting tool which will help users find the most profitable pools at any given time.
Secondly, since the development of Cardano is community-driven, no individual staking pool will be given centralised power. That is to say, stake pools won’t vote.