What is Cardano?

Cardano (ADA) is a Proof-of-Stake (PoS) blockchain platform designed to be flexible, sustainable, and scalable. It supports smart contracts, enabling the creation of decentralized applications (dApps), tokens, and more on its network. Cardano aims to become the most environmentally sustainable blockchain platform by utilizing its Proof-of-Stake consensus mechanism, Ouroboros, allowing ADA token holders to validate transactions by "delegating" their tokens to staking pools run by validators. The blockchain is divided into the Cardano Settlement Layer (CSL), which manages accounts and balances, and the Cardano Computing Layer (CCL), where computations for dApps built on Cardano are executed.

Who Created Cardano?

Cardano was launched in September 2017 by Ethereum co-founder Charles Hoskinson and Jeremy Wood, initially without smart contract support, which was later implemented through the Alonzo hard fork. The Ouroboros consensus mechanism, based on peer-reviewed research from various institutions, including the University of Edinburgh and Tokyo University, is a fundamental part of the network. Cardano is now maintained by three organizations: the Cardano Foundation, Input Output Global, and Emurgo, along with its community. The development progresses through eras named after notable figures, with the current era, Basho, focusing on scalability and network optimization, and the final era, Voltaire, planned to introduce voting and treasury management.

What is ADA Used For?

ADA, the native token of the Cardano blockchain, functions similarly to ETH on the Ethereum network. It is used to pay for transaction fees and can be utilized for governance or earning rewards through the network's Proof-of-Stake consensus. Named after Augusta Ada King, Countess of Lovelace, often regarded as the first computer programmer, ADA has a significant role in Cardano's ecosystem. With the upcoming Voltaire era, ADA token holders will gain the ability to vote on the project's future direction, akin to the governance tokens in decentralized autonomous organizations (DAOs).