What is Blockchain?

Blockchain is an advanced database technology and its built makes it difficult, close to impossible, for rogue systems to change the data entered.
It works like a digital logbook distributed and duplicated across a huge network of computers. In this network the registers are made with blocks and these blocks are attached to each other by “chains”, each of these blocks in the chain contains a finite number of transactions. Whenever a transaction is performed, the record of that transaction is added to the logbook of all blockchain participants.
This decentralized database managed by multiple participants is known as Distributed Ledger Technology (DLT).

A blockchain is a type of DLT in which transactions are recorded with an immutable cryptographic signature called a hash, meaning that you can immediately see if any block has been changed on the network.In order to corrupt the blockchain system it would be necessary to change every block which is distributed across all blockchain users systems.
Blockchains like Cardano and Bitcoin are constantly growing as blocks are added to the chain, which adds security to the database.

CARDANO

Cardano

Cardano is the first blockchain platform developed entirely using peer-review articles, using a scientific methodology. It is a completely open-source project that was designed from zero by a vast group of experts in the fields of blockchain technology and cryptography.
Cardano focuses on delivering an inclusive, fair and resilient infrastructure for financial and social applications on a global scale. One of its main goals is to provide secure and robust access to financial services for those who have no other way to obtain them..

It is a platform that offers the possibility for its users and holders of ADA, their governance currency, to decide the future of the infrastructure through a voting system, called Catalyst Voting.
This voting system allows the allocation of community funds to projects of development and maintenance of the network itself. These funds derive from small fees that are charged whenever a transaction, that represents a database modification, is carried out by a user.

Built using high-assurance formal development methods, Cardano’s Proof of Stake protocol aims to achieve Scalability, Interoperability, and Sustainability.

The Cardano blockchain includes monetary incentives to diversify the number of evenly distributed stake pools in the system, thus making the system even more decentralized than Bitcoin.

Stake-Pools

Stake-Pools

What are stake-pools?

In the blockchain network there’s pool operators (SPO), delegators and passive participants.
Only network participants can produce blocks and their production is an important function for a decentralized network of cryptocurrencies.
Block production requires operation of a node connected to the Internet 24 hours a day, 7 days a week.
Therefore, there are costs associated with block production and transactions validation, these costs are mitigated in the form of rewards to network operators and delegators.
Rewards are managed by season, each lasting 5 days. Participants that support in adding blocks to the blockchain, in the entire season or just part of it, receive rewards for their services.
During each season some nodes are randomly selected for the opportunity to add new blocks, these being known as slot leaders.
A slot is the unit of time in Cardano’s blockchain and lasts for one second.
Pool operators install a client on their nodes and take responsibility for producing the blocks, needing to operate the node and produce a block when the network selects them as slot leader.
Pool operators provide an important service to the network and can be considered network employees. The advantage is that they are motivated to do the job well, as it directly influences their rewards.
Delegates are active stakeholders who do not operate their own pool, but participate directly in the blocks’ production process.
Pool operators and delegates are awarded for the number of blocks the pool has produced, and it is in both their interests to ensure that the pool operates well.
Passive participants have ADA coins but do not operate a pool or delegate coins to a pool.

Delegate

Delegate

How to delegate?

To participate in the network as a delegate and support a stake pool, you must first have the network’s governance currency, which is the ADA. ADA currency can be obtained from a currency exchange provider. Most of these service providers exist online and some countries already have ATMs services for this purpose. Some of the most popular and considered safe currency-exchanges are Binance, Coinbase and Kraken.
After registering on one of these platforms, it is possible to purchase ADA and other cryptocurrencies provided by the platform.
Once you have the ADA in your possession, for example on one of the platforms mentioned, it is possible to proceed with your “withdrawal” from the platform to a personal and private portfolio, in order to guarantee full control over your funds.
At Cardano, the personal wallets that support the delegation of ADAs to a stake pool are Yoroi and Daedalus (mobile version and computer version, respectively).
After installing one of the applications, it is possible to create a free personal wallet that will consist of a digital address where you can download your ADA.
When creating the wallet (Yoroi or Daedalus) a unique password will be generated that will allow, at any time, through one of these applications, to recover access and control the same wallet and the respective funds existing there. Therefore, it is very important that this password is not lost because in case of a computer or mobile phone exchange, without having the password, there is no other way to access the funds!
The password consists of an automatically generated sequence of 24 or 15 words.
Delegate with Yoroi wallet

The application will also ask you to define a second password that will be used to be able to carry out any movement of the funds existing in the portfolio.
For improved security with the password recovery and wallet usage, it is also possible to use an encrypted USB pen-drive, better known as “Ledger” or “hardware wallet”. See our blog for more information on configuring this hardware portfolio.
Delegating does not mean transferring your ADA to a pool, they are yours and will always remain in your wallet. Delegating is just “writing” on the blockchain that you’re supporting a pool, thus making the chances of that pool validating more blocks, bigger.
To find our stake pool in one of the above applications, you can search for “Pooltugal” or our ticker which is “PTP” in the delegate option.

Retributions

Retributions

ADA rewards are obtained by participating in the validation process and maintenance of the network. These rewards are variable and depend on the number of blocks our pool is chosen to add to the blockchain. Each block can contain several transactions and each of these transactions will contain a certain fee, which will be used to pay the service that our pool is providing to the network.
Cardano’s consensus protocol, Ouroboros, will tend towards uniformity of gains for all pools.
This guarantees the fair distribution of the network’s earnings and tends towards an annual appreciation of 5%. This entire payroll process is automatic and managed by the protocol.
At every epoch, which consists of a period of 5 days, all fees will be paid to pools that have added new blocks to the blockchain.

At PoolTugal these fees are distributed as follows: 340 ADA are allocated to cover the energy and maintenance costs of our equipment

1% is a margin paid to the pool’s portfolio, 10% of which will be allocated to support social causes

The remaining 99% are distributed by the pool delegates

Who do we support?

Kiva

Kiva is a non-profit organization that allows the loan of small amounts of money (microcredit) over the Internet for small businesses and third world initiatives.
We chose to support KIVA for its possibility to support various causes, and the amount returned from the loan will always be used to support the next project.
We encourage everyone to support this wonderful initiative, either as delegates through our pool or on your own initiative.

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