Hello there! I’ve been staking my coins for a while after shelly hard fork and in this time i am trying to learn more about cardano. But there are still some questions i couldn’t find any answers. I hope you guys help me.
First of all i couldn’t find any useful information about how staking or proof of stake really works. I mean i watched some vidoes and read some things so i know the basics but i couldn’t see any technical information. If i have to ask 1 by 1 i can say
1-) To verify transactions why does this system needs other ADA coins? What is the technical neccessity of these coins and how these coins verify transactions? What does verify means in this context?
2-) Why there are 13 billion of ADA waiting in the official reward pool to distribute as rewards. I mean doesn’t that make this project some kind of cheap or insignificant? I’m okay with using fees and some reward budget to rewarding but 13,000,000,000 ADA? Come on!
3-) Why past transactions keep verifying? For example i have this transaction dated over a month ago and it has more than 217000 confirmations and it’s keep going. Why it’s keep going? Does it going to stop at some point? If not, doesn’t these confirmations keep the network busy or make it some kind of slow or something?
4-) What is the stake pools purpose? I know cardano community is huge and it’t getting even bigger by the day. So why don’t everyone decentralize it by themselves? Doesn’t that make it much more decentralized and efficient?
These are the questions i wonder for now. I would be appreciated if you can help me. Thank you already.