The Cardano blockchain and ADA cryptocurrency overview
Cardano is a crypto project that is among the top 10 by market cap. ADA is the cryptocurrency that operates on it. These terms are sometimes used interchangeably, but it's important to understand the distinction between them.
This project seeks to develop a platform that is energy-efficient and can serve as a viable alternative to Ethereum and Bitcoin.
Cardano blockchain is leveraged to launch dApps via smart contracts. To put it plainly, it is software that operates within the boundaries of a distributed ledger. Such blockchains are known as Layer 1 or L1 networks, as they serve as a foundation for subsequent levels. Third-party developers can use the Cardano network to build their own applications, which is cheaper and faster than developing their own blockchain from scratch.
Cardano’s СЕО and key investors
Cardano's CEO, Charles Hoskinson, is one of the original founders of Ethereum. He developed the Cardano blockchain over a two-year period from 2015 to 2017.
Hoskinson had a unique vision for solving the three main challenges of the blockchain (scalability, interoperability, and security), which he implemented into the code. As a result, he's considered a leading architect in the modern blockchain industry.
Jeremy Wood, who also worked on Ethereum, is in charge of strategic development for Cardano. He held the position of executive director at Ethereum before joining the Cardano team.
The primary responsibility for further development of the Cardano protocol and ecosystem falls on three key players:
- IOHK, a commercial organization that focuses on developing the Cardano platform;
- Cardano Foundation, a non-profit organization that handles marketing and legal support for the project;
- Emurgo, a global technology company that specializes in the commercial implementation of the Cardano protocol and cultivates partnership relations.
Cardano: Interesting facts
- The Cardano project is written in the Haskell programming language and utilizes open sources of technical documentation from blockchain experts around the world.
- Cardano is an open-source protocol that anyone can contribute to in order to help secure the network, complete transactions, or create decentralized applications stored on its blockchain.
- Unlike the BTC blockchain, which is secured by the Proof-of-Work algorithm, the Cardano blockchain utilizes the Proof-of-Stake consensus, with the ADA cryptocurrency serving as collateral.
- The Cardano network adds a new block approximately every 20 seconds.
- The ADA cryptocurrency is named after Ada Lovelace, a British countess and daughter of Lord Byron who is considered to be the world's first computer programmer.
- The smallest unit of ADA is called Lovelace. 1 Lovelace is equal to 0.000001 ADA.
Charles Hoskinson, the founder of Cardano, has a strong sense of humor and a deep knowledge of classical literature and philosophy, which is reflected in the unique names he has given to each network update.
Cardano roadmap
Cardano is undergoing development in five stages, referred to as "epochs" in the project's roadmap. Each epoch is focused on creating a specific set of features. Cardano updates its code at regular intervals.
However, research, prototyping, and development are carried out simultaneously for several updates at once. Therefore, it is difficult to determine the starting and ending points for each epoch.
1. Byron (2017) was the first major Cardano update, which involved the development of primary components, the creation of a community, the launch of its own cryptocurrency, and preparations for decentralization.
2. Shelley (2020). The second Cardano update marked the transition to full decentralization, including the launch of staking pools.
3. Goguen (2021) This third update introduced smart contracts to the network, providing the infrastructure necessary for the development of decentralized applications.
4. The Basho era of Cardano aims to improve scalability and functional compatibility through the optimization and launch of sidechains to support large-scale applications and high-volume transactions.
5. Voltaire. The Voltaire era will provide the final elements necessary for the Cardano network to become a self-governing and self-sufficient system. Cardano will introduce a treasury, through which every participant can use their voting rights to influence the development of the project. A portion of the transaction fees will be allocated to a common pool to improve the platform.
In addition to these five epochs, there are also intermediate soft forks, such as Vasil, Alonzo, and others, that are part of the overall roadmap.
ADA cryptocurrency
ADA is the native cryptocurrency of the Cardano blockchain, used to maintain network stability and pay for validator services. The total supply is 45 billion coins, which were issued in a one-time emission.
After the launch, the founders and investors received their share of ADA:
- IOHK – 2.5 billion;
- Emurgo – 2.1 billion;
- Cardano Foundation – 648 million.
The founders hold 15% of the total supply of ADA, with the remaining coins allocated among retail investors. During the pre-sale, ADA was offered for $0.0024. At the time of writing, the cryptocurrency is traded at $0.3920 on exchanges. The all-time high of $3.10 was recorded on September 2, 2021, which occurred before the launch of the Alonzo update.
As of February 1st, 2023, the number of addresses holding ADA reached 5 million. Around 2/3 of the total supply of 34.6 billion ADA is in circulation. The daily trading volume ranges from 300 to 350 million dollars.
Unlike other cryptocurrencies, ADA has no lock-up period, making it accessible to a wider range of investors. ADA holders can freely choose to stake their cryptocurrency without limitations, while maintaining the ability to use it for payments or participate in Cardano's DeFi ecosystem.
What are the key features of the Cardano blockchain and how does the ADA cryptocurrency work?
The Cardano blockchain is a decentralized platform that aims to provide a more secure and scalable infrastructure for the development of decentralized applications (dApps) and smart contracts. One of the key features of Cardano is its multi-layered architecture, which separates the settlement layer from the computation layer to enhance the system's security and scalability. Cardano uses a proof-of-stake consensus mechanism called Ouroboros, which is more energy-efficient compared to traditional proof-of-work systems. The ADA cryptocurrency works within the Cardano blockchain, enabling transactions, staking, and participation in the governance of the platform. ADA holders can delegate their tokens to staking pools and earn rewards, contributing to the network's security and decentralization.
