# Overview ## Introduction The Cardano protocol uses a unique proof-of-stake consensus mechanism called Ouroboros, as opposed to the energy-intensive proof-of-work system currently used by Bitcoin. The implementation of a Proof-of-Stake consensus mechanism can vary widely depending on the different networks (see Polkadot staking). On Cardano staking is implemented through registering and delegating your account to a validator. You can [learn more on Cardano](https://www.ledger.com/academy/what-is-cardano) on our Ledger Academy website. There are several reasons to consider buying and using Cardano (ADA) for its intended purposes: * **Advanced technology:** Cardano is a third-generation blockchain platform that aims to address the limitations of previous generations like Bitcoin and Ethereum. It has a unique two-layer architecture, comprising the settlement layer for ADA transactions and the computational layer for smart contracts. This design allows for greater flexibility, scalability, and sustainability. * **Research-driven development:** Cardano's development is driven by a strong emphasis on research and academic rigor. Its underlying technology, the Ouroboros [Proof of Stake (PoS)](https://www.ledger.com/academy/blockchain/what-is-proof-of-stake) protocol, has been peer-reviewed and published in top academic conferences. This ensures that Cardano's technology is cutting-edge and secure. * **Energy-efficient and eco-friendly:** Cardano's PoS consensus mechanism is much more energy-efficient than the Proof of Work (PoW) used by Bitcoin and Ethereum, making it a more environmentally friendly choice for investors and companies concerned about their carbon footprint. **Now, let's discuss how staking works with Cardano:** Staking in Cardano is a process where ADA holders participate in the network's PoS consensus mechanism by delegating their ADA tokens to a stake pool. By doing so, they help secure the network, validate transactions, and earn rewards in the form of additional ADA tokens. Staking with Cardano has several advantages: * **Passive income:** ADA holders can earn a steady stream of passive income from staking rewards, making it an attractive investment option for long-term holders. * **Low barriers to entry:** Unlike PoW mining, which requires expensive hardware and consumes a lot of energy, staking with Cardano is accessible to anyone holding ADA tokens, regardless of the size of their holdings. * **Decentralization and security:** The more people participate in staking, the more decentralized and secure the Cardano network becomes, which ultimately benefits all ADA holders. **Finally, let's address the safety of Ledger Enterprise integration:** Ledger Enterprise makes a point to deliver the most secure solution to interact with a blockchain. In our vision a wallet solution should not let the user be able to lose its funds by mistake and also let the user verify what he is signing with top-notch security for storing and managing digital assets like Cardano. The integration between Cardano and Ledger Enterprise ensures that your ADA tokens are safe from cyber threats and empower our users to verify with certainty the transactions they are signing. **In summary**, Cardano is a highly innovative, research-driven, and eco-friendly blockchain platform that offers ADA holders the opportunity to earn passive income through staking. Its integration with Ledger provides a secure and reliable way to manage and store your ADA tokens. This combination of technological innovation, potential for growth, and security makes Cardano an attractive option for high net worth individuals and companies looking to invest in digital assets. ## Learn more about Cardano Staking Staking operations on Cardano network get processed at the end of the current epoch, on average it is 5 days. You can check the status of an epoch [here](https://cardanoscan.io/). To understand staking, the cardano the community - through ADA Heart Pool - have created [The Grand Ultimate Cardano Staking Guide](https://www.adaheartpool.com/posts/the-grand-ultimate-cardano-staking-guide/), the most translated guide in the community ([here](https://www.adaheartpool.com/) the versions in other langage). It summarises everthing that need to be understood to start staking and we recommend to go through it. To start generating rewards on the Cardano network, you'll follow a 5 steps process and it will take from 16 to 20 days to receive your first rewards. Afterward you'll receive withdrawable rewards at the start of each epoch (5 days) 1. **Register** The *register* transaction is a *refundable staking certificate* with a 2 ADA fee. This transaction will cost you 2 ADA - locked in by the protocol - plus the transaction fee. The 2 ADA will be given back to your account when you'll do the deregister transaction. The register transaction will be processed at the end of the current epoch. 2. **Delegate** Once registered you can *delegate* your account to a stake pool. The delegate transaction will be process at the end of the current epoch resulting in your stake to be *active* thus generating rewards. 3. **Generate reward** Once your delegation is active it starts generating rewards for the current epoch. It will accumulate rewards each time your validator is selected through a random process to sign blocks. At the end of the epoch for which you have an active stake, you'll have signed a certain number of block. The greater the amount of block you'll have signed the greater the rewards you'll receive. Statistically the rewards percent you'll have on your delegated amount will be \~4%. 4. **Calculate rewards** Once the epoch in step 3 is passed, a calculation will take place in the network to identify how much rewards need to be sent to your rewards address. Once that new epoch ends your *withdrawable* balance will be updated with the calculated amount. 5. **Withdraw** In your Ledger Enterprise workspace you'll be able to see 2 differents rewards balances in order to help you to not loose any rewards. The *withdrawable* balance corresponds to the rewards already given to your rewards address that you can withdraw and spend right after the withdraw transaction. The *pending n-1* balance corresponds to the rewards that have been generated and estimated but not yet sent to your withdrawable balance. There may be differences between the pending n-1 balance and what you'll actually receive in the next epoch as it is an estimate. The **deregister** transaction will stop the staking of your account. You'll keep the *withdrawable* balance but you'll lose the *pending n-1* balance. {% hint style="info" %} This feature is currently available only on demand. Please contact your Technical Account Manager for more information. {% endhint %} {% hint style="info" %} Only Shelley addresses are supported for ADA by the Vault, Byron addresses are not supported. {% endhint %} --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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