• Supanit Thomsuwan

Cardano Stake Pool

Cardano Stake Pool

A group of servers running to validate and record transactions in Cardano blockchain. It holds the combined stake of various stakeholders in a single entity. It is maintained and operated by a stake pool operator. Stake pools are responsible for processing transactions, producing new blocks, and are rewarded with all transaction fees recorded on that block.

The servers run on Ouroboros consensus protocol, the first proof-of-stake protocol. For each slot, a stake pool is assigned to producing a block to the chain, the chance that the stake pool will be selected and assigned to produce a block depends on the total stake in the pool, the higher the stake, the more likely it is to be selected.

A stake pool consists of 1 block producer node with at least 1 relay node, while the block producer connected only to their own relay for security purposes, the relay is connected to many other pool's relay using peer-to-peer forming a large network. While proof of stake protocol is much cheaper to run than a proof of work protocol, running a stake pool still incurs some costs. Therefore, stake pool operators are rewarded for running the pool with the incentives that come from the transaction fees and from inflation of the circulating supply of ADA.


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