Cardano

Cardano (ADA) definition: A layer 1 proof-of-stake blockchain network emphasizing sustainability, efficiency, scalability, and academic research.

Cardano is a third-generation blockchain platform emphasizing research-driven development and peer-reviewed academic research in its technology. Founded by Charles Hoskinson in 2015, a co-founder of Ethereum, Cardano is developed under the guidance of IOHK (Input Output Hong Kong). It aims to offer a secure, scalable infrastructure for smart contracts, dApps, and value transfer.

Cardano is distinguished by its scientific approach to blockchain development, creating a sustainable and inclusive ecosystem for cryptocurrencies and decentralized applications (dApps). Its research-driven focus addresses the limitations of current blockchain networks, including scalability, interoperability, and sustainability.

The platform utilizes a multi-layer architecture consisting of two main layers: the Cardano Settlement Layer (CSL) for handling value transactions and the Cardano Computation Layer (CCL) for smart contracts and dApp execution. This separation enhances security and allows upgrades without compromising the core blockchain.

Cardano uses a unique proof-of-stake (PoS) consensus algorithm known as Ouroboros. This algorithm selects validators (stakeholders) to confirm transactions based on the amount of ADA they hold and are willing to “stake” as collateral, improving energy efficiency compared to the proof-of-work (PoW) approach used by networks like Bitcoin.

A key focus for Cardano is interoperability, aiming for seamless interaction between different blockchains. Recognizing the unique strengths and purposes of various blockchains, this strategy enhances the broader blockchain ecosystem.

Cardano’s capabilities extend beyond basic transactions. Its support for smart contracts and dApps facilitates decentralized finance (DeFi), supply chain management, identity verification, and other advanced use cases.