As we reach out to organizations to promote the use of Cardano’s native currency, Ada, we thought it would be good to put together a single resource on what Cardano is, what we as a stake pool operator are, and why charities should consider accepting Ada as a payment option.
What is crypto? What is Cardano?
Cryptocurrencies are digital money. You may have heard of Bitcoin, which was one of the first cryptocurrency, but since then many more coins have been created, each with their own characteristics.
Ada is one the most popular coins, and the only one that runs on the energy efficient Proof-Of-Stake system. You can read this NBC report on Proof-Of-Stake here.
(Note that ‘Ada’ and ‘Cardano’ are often used interchangeably although technically Ada is the native currency that sits on the Cardano platform.)
What is a Stake Pool?
All digital coins require computers to be running continuously in order to function. These computers carry out the processing needed for the digital coins.
Bitcoin and other “Proof-Of-Work” coins however incentivize high energy usage, as the faster your computer can number crunch the better the monetary reward you will get. People that run and maintain such computers are known as “miners”.
Cardano’s “Proof-Of-Stake” system instead incentivizes low energy usage in order to be better rewarded. People that run and maintain such computers are known as “stake pool operators”.
There are additional facts about stake pools relating to how people that hold Ada can assign it (aka delegate it) to a stake pool in order to earn interest, however I won’t go into that here as it’s not really relevant to the topic of energy usage.
Who runs Cardano?
- IOG (formerly IOHK) is a for-profit entity that leads the development of Cardano
- The Cardano Foundation is a not-for-profit entity that act as the custodians of Cardano and promote its usage across businesses, governments, and charities
While the above two can be seen as being the leaders of Cardano, there are also 2000+ stakepool operators, such as ourselves that operate independently and have set up computers to perform the processing needed by the Cardano network.
What is AdaPay?
AdaPay was created through funding from the Cardano foundation, to allow merchants to accept Ada as payment. The first charity to accept Ada was Save the Children.
Why accept Ada?
Cryptocurrencies are growing in popularity. Just like the internet revolutionized communication, cryptocurrencies are revolutionizing banking. However given the high energy cost of some types of cryptocurrencies, it is important to nudge the industry to more sustainable, low-energy coins, such as Ada. It is important we do this early on, before cryptocurrencies reach mass adoption.
Ada is the most successful “Proof-Of-Stake” cryptocurrency out there, and has a hugely dedicated following in the crypto community. Accepting Ada as a payment option, would therefore generate a buzz amongst the crypto community, help spread your message, as well as attract donations.
How to add Ada as a payment option: