Overview

Cardano is a groundbreaking blockchain platform that uses proof-of-stake technology to create a more sustainable and accessible financial system.

It stands out for its research-first approach and scientific philosophy, making it highly secure and energy-efficient.

The platform aims to provide reliable financial services to everyone, including those currently without access to traditional banking.

Since its inception, it has evolved into one of the leading blockchain platforms, processing millions of transactions while maintaining its commitment to sustainability and academic rigor.

What Is Cardano (ADA)?

Cardano is a proof-of-stake blockchain platform that says its goal is to allow “changemakers, innovators and visionaries” to bring about positive global change.

To learn more about this project, check out our deep dive of Cardano.

The open-source project also aims to “redistribute power from unaccountable structures to the margins to individuals” — helping to create a society that is more secure, transparent and fair.

Cardano was founded back in 2017, and named after the 16th century Italian polymath Gerolamo Cardano. The native ADA token takes its name from the 19th century mathematician Ada Lovelace, widely regarded as the world’s first computer programmer. The ADA token is designed to ensure that owners can participate in the operation of the network. Because of this, those who hold the cryptocurrency have the right to vote on any proposed changes to the software.

The team behind the layered blockchain say that there have already been some compelling use cases for its technology, which aims to allow decentralized apps and smart contracts to be developed with modularity.

In August 2021, Charles Hoskinson announced the launch of the Alonzo hard fork, causing Cardano price to surge, gaining 116% in the following month. On Sept. 12, 2021, the Cardano ‘Alonzo’ hard fork officially launched, bringing smart contract functionality to the blockchain. Over 100 smart contracts were deployed in the following 24 hours after the launch.

Cardano is used by agricultural companies to track fresh produce from field to fork, while other products built on the platform allow educational credentials to be stored in a tamper-proof way, and retailers to clamp down on counterfeit goods.

Technology

Think of Cardano like a super-efficient digital ledger that runs on something called Ouroboros - it's basically a smarter way to handle transactions than older blockchains.

Instead of using tons of energy like Bitcoin, Cardano uses a system called proof-of-stake, where people can participate in running the network by holding and 'staking' their ada (Cardano's cryptocurrency).

The whole system is divided into time periods called epochs, which last 5 days each.

During these epochs, different stake pools take turns creating new blocks of transactions.

What makes Cardano special is its layered design - imagine it like a cake with different layers handling different jobs.

The settlement layer handles all the basic transactions, while the computation layer deals with smart contracts and more complex features.

One of the coolest things about Cardano is how it handles security.

It uses the Ouroboros protocol, which has been peer-reviewed by academic experts.

The platform is built using a programming language called Haskell, which helps make everything super secure and reliable.

With the Vasil hard fork in 2022, Cardano significantly improved its transaction processing capabilities and smart contract functionality, making the network faster and more efficient while maintaining its core security principles.