How to start from the scratch?

I am using a good antivirus (not a free version). is this enough to start safely? I don’t do downloading or streaming, I use the laptop only for work…

This should be enough to start with. I would suggest upgrading your security measures in the long term, as you are effectively becoming your own bank, you should act accordingly.

Definitely keep an eye on the ledger hardware wallet progress, as this would be a more secure way of storing your funds.

If you are tech savvy, and have some experience with Linux there is a distribution called Qubes, which is reasonably secure. I suggest using this OS when the Linux version of daedalus is released. If it’s security that you are striving for.

3 Likes

ok! Then…I am reading that basically is not possible to start “mining” - staking - ada… So, when will it be possible and which is the practical difference between the 2 extraction processes?
Plus…It is substantially only possible to buy/trade in ada right now, right? I only can buy a certain amount of coins and keep it, am I wrong?

Staking will be enabled end Q2 2018, around March/April.

Proof of Work

Is a requirement to define an expensive computer calculation, also called mining, that needs to be performed in order to create a new group of trustless transactions (the so-called block) on a distributed ledger called blockchain.

Mining serves as two purposes:

To verify the legitimacy of a transaction, or avoiding the so-called double-spending;

To create new digital currencies by rewarding miners for performing the previous task.

When you want to set a transaction this is what happens behind the scenes:

Transactions are bundled together into what we call a block;

Miners verify that transactions within each block are legitimate;

To do so, miners should solve a mathematical puzzle known as proof-of-work problem;

A reward is given to the first miner who solves each blocks problem;

Verified transactions are stored in the public blockchain

This “mathematical puzzle” has a key feature: asymmetry. The work, in fact, must be moderately hard on the requester side but easy to check for the network. This idea is also known as a CPU cost function, client puzzle, computational puzzle or CPU pricing function.

All the network miners compete to be the first to find a solution for the mathematical problem that concerns the candidate block, a problem that cannot be solved in other ways than through brute force so that essentially requires a huge number of attempts.

When a miner finally finds the right solution, he/she announces it to the whole network at the same time, receiving a cryptocurrency prize (the reward) provided by the protocol.

Proof of stake

Proof of stake is a different way to validate transactions based and achieve the distributed consensus.

It is still an algorithm, and the purpose is the same of the proof of work, but the process to reach the goal is quite different.

Unlike the proof-of-Work, where the algorithm rewards miners who solve mathematical problems with the goal of validating transactions and creating new blocks, with the proof of stake, the creator of a new block is chosen in a deterministic way, depending on its wealth, also defined as stake.

Also, all the digital currencies are previously created in the beginning, and their number never changes.

This means that in the PoS system there is no block reward, so, the miners take the transaction fees.

This is why, in fact, in a PoS system miners are called stakeholders, instead.

Comparison

In a distributed consensus-based on the proof of Work, miners need a lot of energy. One Bitcoin transaction required the same amount of electricity as powering 1.57 American households for one day (data from 2015).

And these energy costs are paid with fiat currencies, leading to a constant downward pressure on the digital currency value.

In a recent research, experts argued that bitcoin transactions may consume as much electricity as Denmark by 2020.

Developers are pretty worried about this problem, and the Ethereum community wants to exploit the proof of stake method for a more greener and cheaper distributed form of consensus.

Also, rewards for the creation of a new block are different: with Proof-of-Work, the miner may potentially own none of the digital currency he/she is mining.

In Proof-of-Stake, stakeholders are always those who own the coins minted.

I’m not entirely sure I understand your question, but here goes nothing :see_no_evil:.

You can buy ADA with ethereum, bitcoin and some other pairings exist (it depends on the exchange you try to trade on) , if you are asking, can you cash out to FIAT the answer is (although it is somewhat cumbersome) yes, you can.

1 Like

thank you so much for your explication! then…I was asking if, right now, I can only buy ada (cardano), but not stake (mine) it

Yes, this is correct, staking starts end Q2 2018, when the Shelley update is rolling out. You can track progress by checking the cardano roadmap.

If you are interested, there are community members who are creating a stakepool.

2 Likes

Oh, I see! Ok!
Great! I’ll join the pool!

1 Like

Is there a way to buy ADA without exchange?
AFAIK, no.

The only way I can think of is asking someone to sell you some ADA if you know them personally…

2 Likes

You actually don’t need the wallet name nor the payment password. You can enter a new wallet name when restoring the wallet. The only thing you need to restore a wallet is the 12 word seed.

2 Likes

That’s a valid point, but I think it’s good practice to avoid a wallet restore when you for example have forgotten the payment password. It would be a lot easier to have it written down somewhere.

I’m wondering if you can set a different payment password for multiple wallets in daedalus?

Yes, for each wallet you create you can setup a different payment password.

1 Like

hi guys! Could you explain me how to buy ada on dedalus, please? Can I pay in dollar or euro?

@junpinmtl you can’t buy Ada directly from within the wallet. Youll need to trade BTC or ETH for it on an exchange like Binance or Bittrex. Then you can transfer it off the exchange into your Daedalus wallet.

2 Likes

When will you save ADA on Leager Blue can?
Solage will no longer invest in ADA.

Support for the Ledger is on the roadmap, but no timeline for it yet.

Hello. thanks for detailed and clear explanations. It really helped me understand cardano and ada better.

Once the staking begins, how much ada do you suppose a single laptop running regular cpu(intel core2duo 2ghz) could potentially create in an hour or a day?

would it be worth it to get a computer with a gpu?

Hi bo_reddude,
Please do not go buy a laptop with gpu for staking :slight_smile:
Ada does not use mining, so your computer power is only relevant in terms of being able to build, run and sign a block if chosen.
But you don’t need a high power GPU, etc. for that.

How much you earn in a day is directly related to how much Ada you hold and stake. I would say offhand the odds of getting a reward every day are very low unless you have 7 or better 8, figures of Ada and/or are in a staking pool.

If you are in a large pool then you may get a small reward on a more frequent basis vs. staking solo where you could wait a year plus to get anything (again varying based on your stake total relative to total stake in the system).

Anyway, my main point is don’t think that you need to go buy excessive computing power as Ada does not use mining like most other currencies. Rather, it’s staking only which is a great benefit for the environment and avoids the need for excessive computing power to mint rewards via block signing.

Hope you are doing well!

2 Likes

You don’t create/mine Ada this way , instead you loan your voting power to a delegate with sufficient hardware power (probably higher than a normal PC, maybe not) and you earn the stake incentive… you can keep all your votes/stake power for yourself and run a node , probably with a high end PC and internet , but your reward will be lower due to law of probability/compounding interest

1 Like

Thank you for the quick reply. I guess I need to learn more about staking vs mining. I see there is a pool which i joined with my email. Do you know when the software to stake will be released? It seems it’s 75% done.