Launched in 2017, Cardano (ADA) is a proof-of-stake blockchain platform that strives to bring positive global change by enabling innovators to develop decentralized applications and smart contracts. Cardano is named after the 16th-century Italian polymath Gerolamo Cardano, while its native token, ADA, is named after the 19th-century mathematician Ada Lovelace. Cardano is one of the biggest cryptocurrencies by market cap as of 2023 and has been designed to be a next-gen evolution of the Ethereum idea — with a blockchain that is flexible, sustainable, and scalable. The Cardano blockchain is divided into two separate layers: the Cardano Settlement Layer (CSL) and the Cardano Computing Layer (CCL). The CSL contains the ledger of accounts and balances (and is where the transactions are validated by the Ouroboros consensus mechanism). The CCL layer is where all the computations for apps running on the blockchain are executed — via the operations of smart contracts. The idea of splitting the blockchain into two layers is to help the Cardano network to process as many as a million transactions a second. The ADA token allows holders to participate in the operation of the network, including voting on proposed changes to the software. Cardano's technology is developed through a process of peer-reviewed research, ensuring the durability and stability of the blockchain. Unlike Ethereum-based tokens, Cardano native tokens aren't created via smart contracts. Instead, they run on the same architecture as the ADA cryptocurrency itself. According to the nonprofit Cardano Foundation, this makes Cardano native assets "first-class citizens" on the blockchain. Their native architecture can theoretically make these tokens more secure and reduce the fees associated with transactions.

Cardano operates on a unique proof-of-stake consensus mechanism known as Ouroboros, which is less energy-intensive than the proof-of-work algorithm used by other blockchains. This mechanism allows Cardano to be secure and sustainable while using substantially less power. Cardano's blockchain is layered, which means it separates the ledger of account values from the reason why values are moved from one account to the other. This separation is intended to make smart contracts safer. Cardano's goal is to be the most environmentally sustainable blockchain platform. It uses a unique proof-of-stake consensus mechanism called Ouroboros, as opposed to the energy-intensive proof-of-work system currently used by Bitcoin.

Cardano's technology has been leveraged in a variety of compelling use cases. For instance, agricultural companies have used Cardano to track fresh produce from field to fork, ensuring transparency and accountability in the food supply chain. Additionally, educational institutions have used the platform to store educational credentials in a tamper-proof way, while retailers have used it to clamp down on counterfeit goods. With the launch of the Alonzo hard fork, Cardano now supports smart contracts, opening up a myriad of potential applications in various sectors.

Cardano was launched in September 2017 by Charles Hoskinson, one of the co-founders of the Ethereum network, and aims to be a third-generation blockchain (or blockchain 3.0) project — building on top of the technology pioneered by Bitcoin (first gen) and Ethereum (second gen). Hoskinson's involvement in the cryptocurrency industry dates back to 2011, and he has been a prominent figure in the space ever since. Cardano's development has been marked by a series of upgrades, each named after a famous figure in history. The Shelley upgrade, for instance, aimed to make the blockchain more decentralized, while the Alonzo hard fork introduced smart contract functionality to the platform. Cardano's development continues to be guided by rigorous academic research and a commitment to creating a more secure, transparent, and fair society. The Ouroboros consensus mechanism is based on peer-reviewed research by a team of computer scientists and cryptographers from the University of Edinburgh, Tokyo University, and other institutions. Their goal was to build a decentralized network that could validate transactions in a scalable, secure way — while ensuring that the Cardano platform would be as energy-efficient as possible.

Decentralized cryptocurrency networks need to make sure that all transactions are legitimate without the oversight of a central authority like a bank. To accomplish this, they use a "consensus mechanism" to verify transactions. The original crypto consensus mechanism, called proof of work, was first popularized by Bitcoin mining. Proof of work requires a large amount of processing power contributed by virtual "miners" around the world. Rather than using a network of miners, proof of stake uses a network of invested participants called validators. The network selects a winner based on the amount of ADA each validator has in the pool and the length of time they've had it there — rewarding the most invested participants. Once the winner has validated the latest block of transactions, other validators can attest that the block is accurate. When a threshold number of attestations have been made, the network updates the blockchain. All participating validators receive a reward in ADA, which is distributed by the network in proportion to each validator's stake. Becoming a validator is a major responsibility, but interested parties can also earn ADA rewards by "delegating" some of their crypto to a staking pool run by someone else. On March 1, 2021, the Cardano blockchain introduced the ability to create native tokens. Like Ethereum tokens — which can include things like NFTs or stablecoins — Cardano native assets can be created and distributed on the blockchain and are able to interact with smart contracts (once smart contracts are enabled on the platform).

Much like the Ethereum blockchain's native cryptocurrency is ETH, the Cardano blockchain's native cryptocurrency is ADA — which can be bought or sold via exchanges like Coinbase. Today, ADA can be used to store value (perhaps as part of your crypto portfolio), to send and receive payments, and for staking and paying transaction fees on the Cardano network.

You can hold ADA on Coinbase, in Coinbase Wallet, and using a number of crypto exchanges and wallets.

Cardano (ADA) distinguishes itself from other cryptocurrencies through its distinct approach to development, scalability, and security. Unlike many cryptocurrencies, Cardano's development is based on peer-reviewed research and evidence-based methods, aiming for a methodical and rigorous approach to updates and improvements. This approach, while slower than some, strives to minimize potential threats and enhance the security of the platform. Cardano also utilizes a two-layer architecture, separating the settlement and computation layers, which allows for greater scalability and flexibility in implementing smart contracts. And, Cardano employs a different type of proof-of-stake consensus algorithm called Ouroboros, designed with the aim to be energy-efficient and enhance security. Cardano's focus on academic research, formal verification, and energy efficiency differentiates it within the cryptocurrency space.

Cardano's Ouroboros is a unique proof-of-stake consensus algorithm that strives to offer a more energy-efficient blockchain network. Ouroboros divides time into epochs and slots, which are short periods where a new block can be created. For each slot, a slot leader is elected based on the stake they control in the network. The slot leader is responsible for adding a block to the blockchain and passing it to the next slot leader. To ensure security, the protocol has a built-in tolerance to prevent attackers from propagating alternative versions of the blockchain. It assumes that an adversary may send arbitrary messages to any participant at any time. The protocol is designed with the intention of being secure as long as more than 51% of the stake is controlled by honest participants. This approach seeks to reduce the dependency on resource-intensive mining, potentially leading to quicker transaction times compared to traditional proof-of-work systems.

Cardano's layered architecture is a distinctive feature in the blockchain space. This architecture divides the different functions of the blockchain into two distinct layers: the Cardano Settlement Layer (CSL) and the Cardano Computation Layer (CCL). The CSL is tasked with tracking account balances and processing transactions, while the CCL manages all computational work, including the execution of smart contracts and network governance. This separation of concerns potentially provides flexibility and optimization, impacting the performance, security, and scalability of the Cardano blockchain. It also enables developers to build decentralized applications and services on the CCL, with the security of the underlying CSL.

Cardano seeks to address the challenges of scalability and sustainability in the digital asset space through its unique design and features. For scalability, Cardano utilizes a protocol known as Ouroboros, which is designed with the intention of handling increased transaction throughput as the user base expands. This protocol is designed with the intention of providing proof of stake security at a minimal energy cost, contributing to the platform's sustainability. Cardano is focusing on integrating sidechains within its platform with the aim of enhancing compatibility and mitigating value fragmentation. In terms of sustainability, Cardano is developing a system with a treasury, where a blockchain can generate tokens and allocate a portion of them into a decentralized account. This approach aims to ensure financial sustainability once the funds raised through an Initial Coin Offering (ICO) run out. Technological sustainability is also a focus, with efforts to adapt to changing technology, use cases, and emerging innovations. Cardano's approach to scalability and sustainability is informed by peer-reviewed research and mathematical game theory, with the intention of maintaining the integrity, performance, and sustainability of all related distributed networks.

Cardano's smart contract capabilities are designed to offer a platform for the development and execution of smart contracts. These contracts are self-executing programs that act as digital agreements between parties, executing transactions when specific conditions are met. Cardano's smart contracts are developed using one of three languages: Plutus, Marlowe, or Glow. Plutus serves as the foundational framework for smart contract development, enabling the creation and execution of contracts. Marlowe is designed with a user-friendly approach to finance on the Cardano network. Lastly, IELE, a portable virtual machine, ensures compatibility and interoperability across different smart contract platforms on Cardano. The smart contract integration operates without intermediaries. The smart contracts lay on a decentralized network, and are designed to resist tampering. The data stored on a decentralized network get stored permanently, along with their backups. They aim to offer a level of security and sustainability to decentralized applications, systems, and societies.

Cardano is a platform for a variety of projects and decentralized applications (DApps). One DApp on Cardano is MinSwap, a decentralized exchange (DEX) that facilitates asset trading on a user-friendly platform. Another DApp on Cardano is CNFT, the first marketplace for non-fungible tokens (NFTs) on Cardano, providing a platform for minting and trading NFTs. Labs by Mutants is another DApp on Cardano that provides features for NFT collections, including features like Raffles and Staking. Indigo Protocol is a DApp on Cardano that seeks to bring real-world assets on-chain, facilitating decentralized synthetics trading within the Cardano network. Lastly, Revuto is a subscription management and tracking platform on Cardano. These DApps are examples of the projects being developed on Cardano.

Cardano addresses interoperability with other blockchains by implementing various techniques and protocols. One of the core concepts Cardano focuses on is interoperability, which is intended to create a multi-functional environment for financial, business, or commercial operations. This allows users to interact not only with one type of currency, but with multiple currencies across various blockchains. Cardano's development includes the intention to support cross-chain transfers, multiple token types, and commonly used smart contracts languages. Cardano's development also includes efforts to ensure interoperability with centralized banking entities, aiming to provide legitimacy and convenience of use. Another aspect of Cardano's development is the introduction of Hydra, a feature that seeks to enable multiple side chains functionality. This approach seeks to provide a balanced and sustainable ecosystem that accounts for the needs of its users and other systems seeking integration.

The Cardano Foundation plays a pivotal role in the Cardano ecosystem, aiming to establish and maintain the operational resilience of the Cardano blockchain. It strives to ensure the blockchain's continuance as a functional and dependable technology with potential applications. The foundation focuses on three main areas: operational resilience, education, and adoption. In terms of operational resilience, the foundation works on maintaining the Cardano blockchain, implementing security measures, overseeing upgrades and innovations, and supporting developers and users. In the realm of education, the foundation emphasizes providing information and educational resources about blockchain technology and Cardano specifically. It also engages with policymakers and regulators to foster a nuanced and innovation-friendly approach to blockchain regulation. Lastly, in terms of adoption, the foundation supports the development of blockchain-native companies and aids in the transformation of legacy systems, fostering adoption through strategic partnerships. The Cardano Foundation's role is to ensure that individuals, organizations, and regulators have a clear understanding of blockchain technology, fostering an environment where blockchain technology can be utilized effectively and responsibly.

Yes, ADA, the native cryptocurrency of the Cardano network, can participate in the network's staking process. Staking is a process where ADA holders delegate their stake, proportional to the amount of ADA held, to a stake pool. Stake pools are nodes in the Cardano network run by operators with the technical expertise to ensure consistent uptime. The more stake delegated to a stake pool, the higher the chance it has of being selected to add the next block to the blockchain and receive a non-monetary acknowledgment. This acknowledgment is then shared among everyone who delegated their stake to that pool. ADA holders can either delegate their stake to a stake pool run by someone else or run their own stake pool. It's important to note that while participating in the staking process, ADA tokens remain within the holder's wallet, and they may be moved or removed from the staking process under certain conditions.

The Voltaire phase is a stage in Cardano's development that strives to establish a self-sustaining system. This phase introduces a voting and treasury system, enabling network participants to use their stake and voting rights to potentially influence the network's future development. The Voltaire phase intends to further decentralize Cardano by allowing network participants to propose Cardano improvement proposals that stakeholders can vote on. This phase also introduces a treasury system, where a portion of all transaction fees may be pooled to fund future network development activities. Once both a voting and treasury system are in place, Cardano's future aims to be influenced by the community, who may utilize tools for Cardano's development. This phase is a step in blockchain governance, aiming to place decision-making power directly into the hands of stakeholders and community members.

Cardano employs a multi-layered security approach to safeguard its network. It utilizes a consensus algorithm called Ouroboros, which ensures that all transactions are validated by a majority of network participants, preventing any single entity from gaining control over the network and protecting against 51% attacks. Cardano conducts regular security audits and code reviews to identify and address any potential weaknesses or vulnerabilities. They also have a program in place that encourages the community to report any potential security issues. Cardano's security model operates on the principle that security is a collective responsibility, rather than the responsibility of a single entity. This means that security measures are developed and maintained through a community-driven process. The community-driven process includes proposals for security improvements. By involving the community in this way, Cardano seeks to align the security measures with the needs and priorities of the broader Cardano ecosystem.