-
The Cardano ecosystem offers access to decentralized exchanges and DeFi platforms.
-
At the end of December, ADA holders must ratify the approval of the new Constitution.
On December 5, 2024, the Cardano (ADA) community approved the new Constitution that will determine a more decentralized governance and encourage the participation of holders of ADA, the native token of this network.
Although the ADA holders still need to ratify the document for its entry into force, the first approval, reported by CriptoNoticias, could promote the ecosystem adoption Cardano and, why not, boost the price of your Cryptocurrency.
Thus, as a result of greater decentralization, more users could be attracted to participate in this network and learn about its benefits.
Therefore, in this article, we will review how to complete this task and what alternatives the network co-founded by Charles Hoskinson (who also co-founded the network) offers. Ethereum-eth/” target=”_blank” rel=”noreferrer noopener”>Ethereum).
More Read
How to participate in the Cardano network?
The first step to participate in Cardano is to set up a wallet that allows store, send, receive and delegate ADA. Among the most used options available are Daedalus Wallet and Yoroi Wallettwo official purses of this network.
The first of these two alternatives is a desktop wallet that acts as a full node, synchronizing completely with Cardano, while the second is a lighter option, accessible from browsers and mobile devices.
The official Cardano Daedalus and Yoroi wallets do not allow direct purchase of ADA within the app.
Because of this, and after configuring the wallet and saving the seed phrase in a safe place, the next step is acquire ADA on an exchange such as Binance, Coinbase or OKX.
Once purchased, the funds must be transferred to the wallet to maintain full control over them.
On Cardano, users do not need to operate a node or lock their funds to participate in the staking.
Instead, they can delegate their ADA to a Staking Pool Operator (SPO) to contribute to the transaction validation and block production process. Your participation increases the weight of the selected Stake Pool, improving your chances of being chosen to validate blocks. In exchange for this participation, they receive an equivalent reward.
Furthermore, delegation is a process in which users assign the “voting power” of their ADAs to an SPO, without transferring ownership of funds nor do they remain blocked in their wallets.
This means that the coins remain in the wallet of the user and can be spent or transferred at any time. Therefore, Cardano staking is called flexible.
Finding a staking pool
From the wallet, after having deposited their ADA, users can browse a list of Stake Pools based on metrics such as performance or saturation and select one.
For example, if Daedalus Wallet were chosen, within the “Staking” section (first option in the left panel in the following image), the SPOs available to delegate ADA can be displayed in the “Stake Pools” section.
At Daedalus you can participate in Cardano staking and voting. Fountain: Daedalus Wallet.
This wallet imposes minimum holdings of 10 ADA ($11.31 at the time of this writing) to be able to delegate those funds to an SPO.
Once the desired pool has been chosen, Daedalus Wallet will ask for confirmation (this is a simple, intuitive process) and will then reflect on the homepage that the wallet is delegated to that pool.
Image taken from Youtube, December 2023. Source: YouTube.
It is also possible to operate a Cardano node
For those seeking more active technical involvement, it is possible operate a node on Cardano to interact in the Network maintenance and validation.
This involves installing the official network client and configuring a machine that meets the necessary requirements, such as a high-performance CPU, sufficient RAM, and a stable Internet connection.
Cardano’s official documents lay out the minimum technical requirements What the computer used to operate a node on the main network and the tesnet (test network) should have.
To operate a node on the Cardano network, the machine used must have at least 24 GB (gygabits) of RAM. Fountain: Cardano.
In this case there are two alternatives. Download full node and operate it “independently” by replicating the network. A full node downloads and validates all information from Cardano, maintaining a complete copy of the record of all transactions and blocks since the inception of the network.
This type of node is responsible for propagating and verifying transactions, which helps in the decentralization of the network.
Second, users can create your own SPO that produces blocks and validates transactions, in addition to managing the ADA delegated by other users.
Operating a node allows generate additional rewardsboth for himself staking as well as the delegations received from other users.
ADA holders can participate in Cardano governance
With the introduction of the Voltaire era In November 2022, Cardano has aimed to introduce decentralized governance mechanisms and to position ADA holders center stage.
In addition to granting their voting power to the SPO managers, ADA holders will be able to participate in the decentralized governance imposed by the new Constitution (it could be ratified at the end of December 2024) through the Delegated Representatives (DReps).
In what was called a tricameral system, the DReps will be intermediaries between the community of ADA holders and the decision processes of aspects such as the treasury and proposals for technical improvements.
For now, Cardano governance continues to operate under the provisional framework of the Interim Constitution established by the Cardano Improvement Proposal 1694 (CIP-1694).
This CIP-1694 imposed the tricameral system, although since it was not ratified by the ADA holders, this method currently works provisionally.
What can be done on the Cardano network?
Cardano offers an ecosystem that ranges from simple transactions with its native ADA token to advanced activities such as the use of decentralized applications (Bitcoin-contratos-inteligentes/” target=”_blank” rel=”noreferrer noopener”>dApps), participation in projects DeFitrade NFT-non-fungible/” target=”_blank” rel=”noreferrer noopener”>NFTs (non-fungible tokens) and contribution to social and educational initiatives.
Among the Most operated dApps On Cardano there are Minswap, Splash Protocol and SundaeSwap, which are decentralized exchanges (DEX) that allow the exchange of tokens and the provision of liquidity in pools.
Additionally, with Liqwid Finance, Lenfiy Aada applications, users can lend and borrow digital assets using a decentralized system and lenders earn interest on funds locked on the platform.
In the case of Liqwid Financeis currently the platform with the highest value locked (TVL) on the Cardano network, with a figure close to $160 million.
There, users can access financial instruments, such as staking and lending, to generate passive income with native Cardano cryptoassets.
Liqwid Finance is currently the highest TVL dapp on the Cardano network. Fountain: LiqwidFinance.
It is important to know that this platform does not allow integration of Daedalus ni Yoroi wallets. In return, it will be necessary to create an account in wallets such as Etern, Nami or Lace. This procedure can be started from the Liqwid Finance interface, and then integrate this dapp with one of those three wallets.
In addition to this, the “Governance” section within Liqwid Finance is intended for the governance of the application itself. This section allows users who hold the LQ governance token to participate in the decision making and future direction of the Liqwid Finance protocol.
Ultimately, Cardano also has dapps such as CNFT.io and JPEG Store, two marketplaces for NFTs on this network where it is possible to interact with these assets.
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
