What is Cardano (ADA)?

cardano ada

The proof-of-stake blockchain project developed by Charles Hoskinson is called Cardano, while the network’s cryptocurrency is called ADA. Cardano was created by a decentralized community of engineers, mathematicians, business professionals, scientists, and thought leaders. ADA is also named after the famous mathematician Ada Lovelace.

Described as the “third-generation” blockchain after blockchains like Bitcoin (first generation) and Ethereum (second generation), Cardano aims to solve the scalability issues in second-generation blockchains and is, therefore, one of Ethereum’s biggest competitors. It aims to offer security, scalability, and interoperability.

Who created Cardano?

Charles Hoskinson, one of the co-founders of Ethereum, started developing Cardano in 2015. This platform, which describes itself as the updated version of Ethereum, was launched in 2017.

Three different organizations are responsible for the development of it: Cardano Foundation, IOHK, and EMURGO. This blockchain project was largely developed by the technology company Input Output Hong Kong (IOHK). Founded by Charles Hoskinson, IOHK is a technology and engineering company that develops cryptocurrencies and blockchains for academic institutions, startups, and government entities. IOHK is responsible for designing, developing, and maintaining the Cardano platform.

The Switzerland-based Cardano Foundation is the legal guardian of the protocol and owner of this brand. The mission of the foundation is to increase the prevalence of the platform and support its community.

EMURGO, one of the founding members of the Cardano protocol, is the only profit-oriented organization among these organizations. EMURGO aims to develop the platform and increase its prevalence through commercial initiatives.

What is ADA?

ADA is the cryptocurrency of the Cardano blockchain and is used to perform activities on the blockchain. ADA, which has provided %639 returns since the beginning of the year, is one of the most preferred cryptocurrencies by investors due to its high return.

Cardano was designed to solve the scalability issue in blockchains like Bitcoin and Ethereum. It is intended to evolve into a decentralized application (DApp) improvement platform with a multi-asset ledger and valid smart contracts over time.

Moving forward to deliver the scalability, interoperability, and sustainability required for real-world applications, it has a mission to be the blockchain of choice for large-scale and critical decentralized applications.

Cardano’s Proof of Stake (PoS) consensus mechanism Ouroboros significantly reduces the energy cost compared to Proof of Work (PoW) blockchains like Bitcoin. Layer 2 solution Hydra, on the other hand, increases scalability by increasing output with each node added to the network.

ADA is a digital unit, the basis of the Cardano network, and is used for transactions on the network, such as the relation between Ethereum and Ether.

ADA, which can be used as an investment and store of value, is a cryptocurrency that is also used for payments and staking. Every ADA holder is also a stakeholder in the Cardano network. The network can earn rewards for participants by transferring their ADA to stake pools. ADA will also be used in applications and services that will be developed on Cardano over time.

Cardano’s blockchain roadmap

Its blockchain roadmap consists of five different eras: Byron, Shelley, Goguen, Basho, and Voltaire. Byron, the first era of blockchain, was launched in 2017, making ADA trading possible.

Cardano entered the Shelley era with a hard fork on July 29, 2020. In the Shelley era, it is aimed to make it more decentralized.

In the next era, Goguen, users will run smart contracts and develop decentralized applications on the blockchain. In the Basho era, sidechains can work with the Cardano chain. Finally, in the Voltaire era, the voting and treasury system, which is the last element necessary for the Cardano network to become a self-governing system, will be introduced.

SEE ALSO: What is Litecoin (LTC)?

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Caroline Tetra

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