Cryptocurrency is becoming a popular form of payment, and it’s easy to see why. It allows for instant transactions with no middlemen involved in the process.
With cryptocurrency becoming as popular as it has, there has also been an increase in the platforms wherein you can store various forms of cryptocurrency, such as Ledger.
We are going to be looking at the digital wallet platform that is Ledger and whether it is able to support Cardano, the blockchain platform.
Let’s get started.
What Is Ledger?
Ledger is a company that specializes in creating digital wallets.
The first product they released was called “Ledger Nano S” which is a small USB device that stores your cryptocurrencies on.
This device works by using a secure chip to protect your private keys from being stolen or hacked.
If someone were to steal this device and your crypto assets, then they would not have access to any of your funds.
The second product Ledger developed was called “Ledger Live” which is a desktop application that allows you to manage all of your accounts.
You can use this app to send and receive money, view account balances, and more.
How Does Ledger Work?
When you buy something online or when you make a purchase at a physical location, you will need to provide them with some sort of identification.
For example, if you are buying something online, you may need to enter your email address and password into a website.
Once you do so, you will then be taken to a page where you can confirm your identity.
After confirming your identity, you will be given a unique code that is used to identify you. This code is what is stored on your Ledger wallet.
Your Ledger wallet contains information about every transaction that you have ever made.
Why Should I Use Ledger?
If you want to keep your cryptocurrency safe, then you should consider using a Ledger wallet.
Not only does it allow you to keep your coins protected, but it also makes sending and receiving payments much easier than other methods.
In addition, if you lose your phone, then you won’t have to worry about losing your entire portfolio because you can always recover it through your Ledger.
Now that we have had a look at Ledger and how it works, let’s take a look at Cardano.
What Is Cardano?
Cardano is a decentralized operating system based on Bitcoin.
The goal of Cardano is to create a new type of network that is capable of handling large amounts of data.
The team behind Cardano believes that the current networks are too slow and inefficient to handle the amount of data that needs to be processed.
Cardano uses the “Proof-of-Stake” consensus algorithm, which means that users who hold their coins in their wallets will be rewarded with ADA tokens.
These rewards are generated by users staking their coins.
Staking involves locking up your coins for a certain period of time.
When you stake your coins, you are essentially saying that you trust the network enough to put your coins in storage while you aren’t actively using them.
In order to stake your coins, you must download the Cardano Wallet. This wallet is available for both Android and iOS devices.
Once you have downloaded the wallet, you will be prompted to install it.
Once installed, you will be asked to connect your wallet to an existing Ethereum address. You will then be able to start staking your coins.
Once you have started staking, you will be able to see the total number of ADA tokens that you own.
You will also be able to see how many ADA tokens you have earned over time.
If you don’t feel like staking your coins, you can simply set up automatic withdrawals from your wallet.
Once you have completed staking, you will need to wait until your balance reaches a specific threshold before you can withdraw your funds.
This process takes anywhere between 24 hours and 7 days, depending on the size of your balance.
How Does Cardano Work?
The way that Cardano works is similar to how the Lightning Network operates.
Instead of having one central server that handles all transactions, there are multiple nodes that act as servers.
Each node has its own copy of the blockchain. As soon as a user sends a payment, they send it to the first node in line. The first node forwards the payment onto the next node, and so on.
Once the last node receives the payment, it relays the payment back to the original sender.
The main difference between this method and traditional blockchains is that the transaction fees are paid directly to the nodes instead of being charged to the end-user.
This allows the network to scale infinitely without any additional costs.
As mentioned earlier, Cardano uses the “Proof-of-Stake” consensus algorithm.
This means that users who hold more ADA tokens will receive more rewards than those who only hold a small number of coins.
In addition to receiving rewards, users who stake their coins will also earn interest on their holdings.
This is done through what is called “staking pools.” There are different types of staking pools, but the most common ones include:
Pool 1 – This pool consists of the top 100 addresses that have been holding their coins for at least 6 months.
Pool 2 – This pool contains the top 200 addresses that have been held for at least 12 months.
Pool 3 – This pool includes the top 500 addresses that have held their coins for at least 18 months.
Pool 4 – This pool contains the addresses that have been staking for at least 30 months.
Each of these pools will reward the addresses within them based on their contribution to the overall network.
For example, if a user holds 10% of the entire supply of ADA, he or she would receive 0.1% of the total rewards.
So, onto the main question! Is Cardano supported by Ledger? Let’s find out.
Does Ledger Support Cardano?
Yes, Ledger does support Cardano! However, you will need to use the Ledger Nano S hardware wallet.
While the Ledger Nano X is compatible with ADA, it doesn’t currently allow for staking.
So, if you want to stake your coins, you’ll need to stick with the original model.
If you already own a Ledger device, then you should be good to go. Just connect your ledger to your computer and follow the instructions below.
To start staking, you will first need to download the latest version of the Cardano Wallet app from Google Play Store or Apple App Store.
You can also visit the official website here.
If you’re using Chrome, you can install the Ledger Live application. After installing the wallet, open it up and click on “Settings.” From there, select “Ledger” under wallets.
Click on “Add new wallet,” and enter your password. Then, select “Cardano” from the dropdown menu.
Finally, choose “Create account” and confirm your details. Now, you’re ready to begin staking.
To do this, simply add some funds into your wallet. Go to the “Wallet” tab. Under “Address book,” click on “+ Add address.” Enter your desired address and click save.
Next, go to the “Accounts” tab. Here, you can see your balance and other information about your accounts. Scroll down until you reach “Staked Accounts.”
Here, you will see all of your staked accounts.
Select one of them and click on “View Account Info.” You will now be able to view your staked balance as well as how much interest you’ve earned.
The bottom line is that Ledger does indeed support Cardano.
The process is relatively simple and straightforward so that no matter whether you are new to the world of cryptocurrency or an experienced investor looking to diversify your portfolio, you shouldn’t have any trouble setting up your own staking pool.
However, keep in mind that while the Ledger team has stated that they plan to release a mobile wallet for ADA soon, it isn’t yet available.
So, if you’d like to take advantage of the benefits offered by staking, you may want to wait until the wallet comes out before adding your ADA to your hardware wallet.