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 was founded in 2015 by Charles Hoskinson, co-founder of Ethereum, and is developed and maintained by the Cardano Foundation, Input Output Hong Kong (IOHK), and Emurgo.
Cardano uses a proof-of-stake (PoS) consensus algorithm called Ouroboros, which allows users to validate transactions on the network by “staking” their ADA tokens. This means that users can earn rewards for helping to secure the network by holding and staking their ADA tokens, rather than by contributing computational power like in proof-of-work (PoW) systems.
Cardano aims to address some of the scalability and sustainability issues that have been faced by other blockchain platforms, and has a strong focus on research and development. It also has a multi-layered architecture that separates the settlement layer (where transactions are recorded) from the computation layer (where smart contracts and DApps are executed), allowing for more flexibility and modularity in the platform.
ADA is the native cryptocurrency of the Cardano blockchain, and is used to facilitate transactions and reward users who contribute to the security and stability of the network. It can be bought and sold on cryptocurrency exchanges and used to purchase goods and services from merchants who accept it.
How does Cardano work?
In a proof-of-stake (PoS) system, network participants validate transactions and create new blocks by staking their own cryptocurrency holdings, rather than by expending energy to solve cryptographic puzzles as in a proof-of-work (PoW) system.
To participate in the Cardano network as a staker, an individual or entity must hold a certain amount of the native cryptocurrency ADA and run a full node, which is a computer that stores a copy of the entire blockchain and participates in the consensus process. When a staker creates a new block, they are rewarded with a portion of the transaction fees included in the block, as well as a new supply of ADA.
Cardano is also designed to be highly modular, with a layered architecture that separates the core blockchain logic from the application layer. This allows for the easy addition of new features and upgrades without disrupting the overall network.
The Cardano blockchain includes a native cryptocurrency called ADA, which can be used to facilitate transactions on the network and as a store of value. Cardano also has a strong focus on research and development, with a team of academic and industry experts working on the project.
