Cardano (ADA) is a third-generation blockchain platform designed to improve upon the functionality of Ethereum and Bitcoin. Named after Gerolamo Cardano, a 16th-century Italian polymath, Cardano describes itself as a third-gen blockchain equipped with technologies enabling a sustainable and secure cryptocurrency network.
As a layer-1 blockchain project, Cardano has its native token, ADA, which serves as a consensus mechanism anchor and settlement currency. ADA honors Ada Lovelace, the 19th-century mathematician who developed the first computer algorithm.
How Does Cardano Work?
Built using the highly secure Haskell programming language, Cardano features a multi-layered protocol:
- Cardano Settlement Layer (CSL): Acts as the accounting unit.
- Cardano Computing Layer (CCL): Executes smart contracts and facilitates identity recognition.
Cardano employs Ouroboros, an energy-efficient Proof-of-Stake (PoS) consensus mechanism where users stake ADA to validate transactions. Validators earn ADA rewards proportional to their stake. This system uses minimal energy compared to Bitcoin or Ethereum.
Key features:
- Processes 250 TPS (vs Ethereum’s 15 TPS).
- Supports decentralized applications (DApps).
- ADA tokens pay transaction fees and enable staking rewards.
Major Cardano Upgrades
Alonzo Upgrade (2021)
Added smart contract capabilities, enabling DeFi and NFT development on Cardano.
Vasil Upgrade (September 2022)
Enhanced Plutus programming language, improving:
- DApp development speed.
- Transaction capacity.
- Block propagation efficiency (5-second block sharing).
ADA Tokenomics
- Max Supply: 45 billion ADA.
- Circulating Supply: ~34.18 billion (as of 2022).
Distribution:
- ICO: 25.9 billion ADA sold.
- Team allocations: IOHK (2.46B), Emurgo (2.07B), Cardano Foundation (640M).
- Staking rewards: ~2.9 billion ADA distributed to validators.
Founders & Background
- Charles Hoskinson: Co-founder of Ethereum, launched Cardano in 2017 via IOHK.
- Jeremy Wood: Co-founded IOHK, focusing on academic and enterprise blockchain solutions.
What Makes Cardano Unique?
- Peer-Reviewed Development: Rigorous academic research underpins all updates.
- Sustainability: PoS model reduces energy consumption.
- Scalability: Layer-2 solutions (e.g., Hydra) aim to boost TPS further.
👉 Explore Cardano staking rewards
FAQs
1. How can I buy ADA?
ADA is available on major exchanges like OKX, Binance, and Coinbase. Purchase with fiat or trade against other cryptocurrencies.
2. What’s the future of Cardano?
Cardano plans to enhance scalability via Hydra (Layer-2) and expand DeFi/NFT ecosystems.
3. Is Cardano better than Ethereum?
Cardano offers lower fees and energy use, but Ethereum has a larger developer community and DApp ecosystem.
4. How do I stake ADA?
Delegate ADA to a staking pool via wallets like Daedalus or Yoroi to earn ~4-5% annual rewards.
5. What’s ADA’s price prediction?
Prices depend on adoption, upgrades, and market trends. Historically, ADA has been volatile but ranks among top cryptos by market cap.
6. Can Cardano support smart contracts?
Yes, since the Alonzo upgrade in 2021, developers can build DApps on Cardano.