What is A Cardano Stake Pool?

A stake pool is a server node, which requires a minimum of three standard desktop specced computers. You can read the more technical detail of Cardano server nodes here. There are currently over 3,000 stake pools to choose from. Within these Cardano stake pools, transactions are processed, and new blocks are produced. These pools are the lifeblood of Cardano’s PoS protocol - Ouroboros. Stake Pools on Cardano can be split into two broad categories, private stake pools, and public stake pools. Private stake pools, as the name suggests, aren’t open to the public and only deliver rewards to the owners of the pool. The majority of these are run by large exchanges to service their own business. ‍Public stake pools, on the other hand, are open to the public, and any ADA holders can delegate to that pool and receive rewards. Stake pools are run by a business or an individual with enough knowledge and resources to run a node consistently. The more stake (ADA) that is delegated to a stake pool, the higher the chance of being selected as a slot leader. Essentially when the stake pool produces a block that’s added to the blockchain, the pool is rewarded, and the rewards are shared between the stake pool operator and delegators.