Shelley Phase

Cardano’s Shelley Phase intends to turn the system into a completely decentralized blockchain. By implementing proof-of-stake consensus, delegation, and incentive schemes, the network’s security and scalability will be enhanced. Users will be able to vote on transactions and stake their ADA tokens in this way.

The delegation, whereby ADA holders can transfer their share to other network users who are already operating nodes, is a crucial aspect of the Shelley Phase. Stake pool operators are those that run nodes and are compensated for processing transactions when they manage a stake pool.