What is Cardano?
Cardano is a decentralized public blockchain and cryptocurrency project that is focused on providing a secure and scalable platform for the development and execution of smart contracts and decentralized applications (dApps). It is the first blockchain platform to be built on the Haskell programming language, and is known for its strong emphasis on security, sustainability, and scalability.
Cardano was created by blockchain development firm Input Output Hong Kong (IOHK) and is led by Charles Hoskinson, co-founder of Ethereum. It was designed to address some of the scalability and security issues that have plagued other blockchain platforms, and aims to provide a more robust and reliable foundation for the development of dApps and smart contracts.
Cardano uses a proof-of-stake (PoS) consensus algorithm called Ouroboros, which allows users to validate transactions and earn rewards by staking their tokens. It also has a governance model called the Cardano Improvement Protocol (CIP), which allows the community to propose and vote on changes to the protocol.
Cardano's native cryptocurrency is called ADA, which can be used to facilitate transactions on the Cardano platform and as a store of value. Cardano is actively developed and supported by IOHK, and has a strong community of developers and users worldwide.
How does Cardano work?
The Cardano network is composed of two layers: the Cardano Settlement Layer (CSL) and the Cardano Computation Layer (CCL). The CSL is responsible for handling transactions and recording them on the blockchain, while the CCL is responsible for executing smart contracts and running DApps.
To participate in the Cardano network as a staker, an individual must hold a minimum number of ADA, the native cryptocurrency of Cardano, and run a full node, which is a computer that stores a copy of the entire Cardano blockchain and helps to validate transactions. When a staker creates a new block, they receive a reward in the form of additional ADA.
Cardano uses a novel approach to governance called the “Liquid Democracy” system, which allows stakeholders to delegate their voting power to others or to vote on specific issues themselves. This is intended to make the decision-making process more efficient and democratic.
