Updated: Mar 22
What is a cryptocurrency?
A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralised networks based on blockchain technology.
A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.
Why Cardano and not Bitcoin?
Cardano is a third generation blockchain network with significantly greater potential than its predecessors.
Cardano is built as a proof-of-stake blockchain platform. Proof-of-stake is an innovative protocol where a person can mine or validate transactions according to how many ADA he or she holds. This is a novel way of validating the blockchain ledger and negates the need for traditional power-hungry mining systems that are detrimental to the environment. Proof-of-stake also allows every stake holder (someone who owns ADA) to earn rewards, akin to legacy interest or dividend payments.
Cardano is also being developed into a decentralised application (DApp) platform with a multi-asset ledger and verifiable smart contracts. The network is built with high-assurance formal development methods founded in peer-reviewed research papers. Cardano aims to achieve the scalability, interoperability, and sustainability needed for real-world applications.
What is the difference between Cardano and ADA?
Cardano is the blockchain network. ADA is the primary cryptocurrency used on Cardano, and it can be used for direct value transfer.
What is delegating?
Delegating is a new method of maintaining a decentralised blockchain. It does not require the high-powered computer farms like that required for other cryptocurrency networks. Anyone can participate simply by nominating to do so, and it uses significantly less energy. Just by nominating to delegate to Black Box you are ‘mining crypto’ in the traditional sense and being rewarded for it.
Can you explain delegation in simple terms?
The easiest way to explain delegating is by comparing it to buying a conventional stock and receiving a dividend (profit share) payment. In the case of delegating to Black Box, ADA is akin to the stock, and the rewards you receive from Black Box are like dividend payments. These two examples function in completely different ways, however, it is the easiest way to think of delegating to Black Box.
This can enable the delegator to benefit from both the capital change from owning ADA (like owning a stock), as well as the rewards received from participating in the delegation mechanism with Black Box (like receiving dividends).
What is a Cardano Stake Pool?
A stake pool is a reliable node on the Cardano network that processes transactions and mints new blocks on the block chain.
The Ouroboros protocol which Cardano is built around is a proof-of-stake protocol that requires a reasonable number of stake pools to be online at any time. The protocol uses a probabilistic mechanism to select a leader from the selection of stake pools for each slot, this stake pool will be expected to create the next block in the chain. Once this block is created and added to the blockchain, the stake pool will receive rewards.
Stake pools are run by stake pool operators. Stake pool operators need to have the skills to reliably ensure consistent uptime of the node to maximise the rewards earnt. Stake pool operators can deduct their running costs from the awarded ADA prior to distribution to the delegators, as well as specify a profit margin for providing the service.
This is the service that Black Box provides.
Why should I delegate? What is the benefit?
By nominating to delegate your ADA you can receive rewards up to 5% of your wallet value. *conditions apply.
When you delegate, your ADA is never locked or transferred, and you retain full spending power and control over your ADA at any time.
Will my ADA be safe when delegated?
Delegating your ADA to Black Box stake pool is safe and secure. The delegation mechanism allows you to remain in full control over your funds. You delegate only your right to participate in the protocol producing blocks. Therefore, when you delegate to Black Box, you only allow us to produce blocks on your behalf, and you never give up control of your wallet.
How much ADA should I buy to delegate?
The answer to this question varies with individual circumstances. However, please only purchase and delegate as much ADA as you are comfortable with and you can afford. Please be aware that cryptocurrency markets are volatile, and significant price fluctuations can occur frequently.
Is there a minimum amount I can delegate?
The minimum amount that can be delegated to Black Box is 10 ADA.
Why should I delegate to Black Box and not another stake pool?
Black Box is a professionally owned and operated stake pool that is hosted on Google servers. Therefore, Black Box’s cluster of servers are maintained to the highest standards and with the same reliability we have all become accustomed to when using Google services. This achieves minimum downtime and increases the likelihood of never missing an opportunity to produce a block when elected as the slot leader. In turn maximising the rewards distributed to delegators.
Black Box also has some of the lowest fees of any stake pool, and we also give back to the community regularly by donating to charity organisations. We have invested significantly in educational material published on multiple social media platforms to help anyone better understand blockchain technology. Black Box has a consistent and proven record of paying the highest rewards while maintaining the lowest fees with maximum up-time.
How do I claim my rewards?
Rewards are automatically paid to the same wallet that you nominated to delegate. Therefore, you can just set and forget! Rewards are paid in the form of ADA, whether you keep this ADA in your wallet or exchange for conventional currencies on an exchange is entirely up to you. Rewards are paid out after every "epoch", or 5-day period, provided a block has been produced during this period. This process is completely transparent and trackable on the Daedalus program in the delegation centre.
How much do I pay in fees?
The two fees charged upfront to participate in the delegation mechanism is a deposit of 2 ADA, and a transaction fee of less than 0.20 ADA will be used to process the transaction. However, fees are charged independently by the cryptocurrency exchange of your choice to convert your conventional currency into ADA. Fees vary between exchanges, but they are usually between 0-1% of the transaction value.
Do I need to update my delegation at any time?
Once you have nominated to delegate your wallet to Black Box it will automatically continue to be delegated until you change your delegation.
Can I stop delegating and sell my ADA?
While you are delegating your wallet to Black Box, you remain in full control of your wallet with no obligations. For example, you can delegate your wallet to Black Box, subsequently change your mind immediately after, and you are free to do so. Black Box never has access to your wallet, you remain in total control all the time.
How are the servers maintained? Do they operate 24/7?
Black Box utilises servers managed by Google that operate around the clock; therefore, they are maintained to the highest standards with the same reliability we have all become accustomed to when using Google services.
How many people are currently in Black Box stake pool?
Each day more and more people are joining Black Box as delegators so this number changes frequently. To view the latest list of delegators please visit the website www.pooltool.io and search for Black Box (BLKBX).
Is it better to have more or less delegators in the pool?
In terms of annualised rewards, this does not matter. Each pool no matter how big or small will pay delegators approximately 5% of their delegated wallet amount in rewards per year. For example, a small pool may only produce one block per month, while a bigger pool may produce 50. The benefit of a smaller pool is that there are less delegators to distribute the rewards with. The bigger pool will have significantly more delegators to divide the rewards with.
How does Black Box make money?
Black Box is a stake pool, which is a critical part of the proof-of-stake protocol employed on the Cardano network. Black Box processes transactions and ‘builds’ or ‘mines’ blocks on the blockchain. By doing so we are rewarded depending on how many blocks are produced. The rewards received from this process are paid out automatically. Black Box currently has a fee of 340 ADA plus 1%. This is one of the lowest fee structures of any stake pool currently on the network.
Is this a pyramid scheme?
No. A significant amount of work is going on behind the scenes to maintain the stake pool and validate transactions on the Cardano blockchain network. This work is what Black Box gets rewarded for and how we generate a return for our delegators.
What is the catch? This sounds too good to be true!
There isn’t one! This is cutting edge technology, and it is allowing anyone to participate in validating transactions through delegation and being a part of Black Box stake pool. Essentially anyone can now take on the role conventional banks play and benefit from this process.
What are some tips to keep my ADA safe?
Since Cardano is a decentralised network, extra caution must be applied to keep your ADA safe. Here are a few tips to help you do so:
1. Keep your recovery phrase and spending password safe.
2. Only download wallet apps and programs from official sources.
3. Never participate in ‘giveaway promotions’.
4. Never send your ADA to anyone and expect them to send it back.
These are just a few tips to help you keep your ADA safe.
If you have any questions, please visit our website blackboxpool.io, or email us at firstname.lastname@example.org and we are more than happy to assist.