What Is Cardano
Cardano enables owners that have the native cryptocurrency token ADA to operate the network and vote on specific changes to the rules of its software.
Developers can also use the Cardano blockchain for running custom programming logic known as smart contracts and building programs known as decentralized applications or dApps.
The ADA token can also be used for voting on software policies and gives participants an incentive to hold ADA in order to ensure the future of the blockchain as well as the token.
Discussing the founders of the Cardano Network, it was founded by Charles Hoskinson, who was the co-founders of the Ethereum Network. He is also the CEO of IOHK, which is the company that actually managed to build Cardano’s blockchain, which is quite impressive.
He got involved in cryptocurrencies in 2011 and got engaged in mining as well as trading.
However, now, Cardano is maintained by a total of three different and independent organizations.
You first have the Cardano Foundation, which is a non-profit responsible for supervising and overseeing the development of the Cardano Platform. Then you have IOHK, which built Cardano and designed the Ouroboros, which is the proof-of-stake algorithm that the Cardano blockchain uses to operate the network.
Then you have Emurgo, which is the company that helps encourage enterprises as well as other organizations to adopt the technology.
How Does ADA Work
Cardano is one of the best and largest blockchains to ever successfully use a proof-of-stake consensus mechanism that is a lot less energy-intensive when compared to the proof-of-work algorithm, which was relied upon by other blockchains such as Bitcoin. The project has ensured that all of the technology which is developed goes through a process of peer-reviewed research which means that each idea can be challenged before it is actually validated.
This helps the blockchain be durable as well as stable and increases the chance that potential pitfalls can be anticipated prior to them happening.
Its primary use case allows transactions to occur in its native cryptocurrency ADA and enables developers to build secure as well as scalable applications which are powered by it.
The blockchain actually has two specific layers. First, you have the Cardano Settlement Layer (CSL), which is used to transfer ADA between accounts and to record the transactions, and then you have the Cardano Computation Layer (CCL), which contains the smart contract logic which developers can leverage in order to programmatically move the funds.
The computers that run the Cardano software can join as one of three nodes, including mCore nodes, which can stake ADA tokens and participate in the governance of the blockchain, Relay nodes which can send data between mCore nodes as well as the public internet, and Edge Nodes which create cryptocurrency transactions.
When we take a look at its history, Cardano has actually gone through five major upgrades, such as Byron, which enabled ADA to be transferred for the first time, and Voltaire, which introduced a new model for how users can fund developments. This all shifted the Cardano Price.
Next, we need to discuss Ouroboros. It is the proof-of-stake (PoS) consensus algorithm which is used by computers that run the Cardano software to secure the network, validate the transactions and earn newly minted ADA. It Divides time into epochs as well as slots, where epochs are the overarching time frames, and the slots are twenty-second increments within epochs. It has this as a built-in feature, and as such, has a high market cap.
In every single slot, a slot leader is chosen at random who is then responsible for picking the block that can get added to the blockchain, and only mCore nodes can be elected to become these leaders.
Through this consensus algorithm, two types of blocks can be added to the blockchain, including the Genesis blocks, which include the list of all of the slot leaders which are associated with the epoch and has a series of main blocks as well as the main blocks, which contain all of the transaction information as well as the proposals for software updates as well as the list of votes on these updates.
All of this needs to be considered when you analyze the Cardano protocol as well as the Cardano blockchain platform, where you can evaluate the ADA Price. The ADA Native token has made its market cap go high due to the smart contracts and the overall Cardano ecosystem as a blockchain platform. Our step-by-step guide on how to Buy Cardano will help you get started!