Stake pools

A stake pool is a network node holding the combined ada ('stake') of several delegators. Stake pools yield rewards to those ada holders who choose to delegate their ada to them. Stake pools are used to ensure that everyone can participate in the Cardano Blockchain, regardless of technical experience or availability to keep a node running. These stake pools focus on maintenance and hold the combined stake of various stakeholders in a single entity. Stake pools are responsible for processing transactions that will be placed in the ledger, as well as producing new blocks.

Stake pools can be public or private. Any Cardano user can delegate ada to public pools. Private stake pools, however, only deliver rewards to their owners.

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