ADA is a proof of stake asset. Ouroboros defines the way in which nodes come to a consensus about the state of the ledger. Its algorithm selects which nodes will become slot leaders. The slot leader generates new blocks on the blockchain, and verifies the transaction. Anyone holding ADA can become a stakeholder, and also become a slot leader. A slot leader publishes new blocks to the network when Cardano’s consensus algorithm selects ADA that you hold. A node is selected to generate a new block with the probability proportional to the amount of ADA the node has.
Let’s clarify this a bit more:
- If a node has any amount of ADA staked, you are a stakeholder.
- If a node gets chosen to mint a new block, you are a slot leader.
The more ADA you hold, the better the opportunity you have at becoming a slot leader, and a better chance at receiving more rewards. The more you hold, the better your chance. It’s as easy as that!