Cardano is a decentralized blockchain network that was founded in 2015 by Charles Hoskinson, a co-founder of Ethereum. It aims to provide a more secure, scalable and sustainable platform for building decentralized applications (dApps) and executing smart contracts.
One of the key features of Cardano is its proof-of-stake consensus mechanism, which is called Ouroboros. This is different from the proof-of-work mechanism used by Bitcoin, which requires a lot of computational power and energy consumption. Proof-of-stake works by allowing users to "stake" their ADA tokens to become validators of new blocks on the network. Validators are selected randomly based on the amount of ADA they have staked, and are incentivized to act honestly by receiving rewards for their work and penalties for malicious behavior.
Cardano also uses a layered architecture, which separates the network into two main layers: the settlement layer and the computation layer. The settlement layer handles transactions and the transfer of funds, while the computation layer handles the execution of smart contracts and other decentralized applications. This architecture provides greater flexibility and scalability for the network, allowing for easier upgrades and changes without disrupting the entire network.
In addition, Cardano has a strong focus on security and sustainability. It was designed from the ground up to be a secure and robust platform, with a peer-reviewed research approach to its development. Cardano is also energy-efficient and eco-friendly, with significantly lower energy consumption compared to proof-of-work networks like Bitcoin.
Cardano's native cryptocurrency is ADA, which is used for transactions and as a means of exchange on the network. ADA has a fixed maximum supply of 45 billion tokens, with a circulating supply of approximately 32 billion as of early 2022.
Overall, Cardano aims to provide a more secure, scalable and sustainable platform for decentralized applications and smart contracts. With its proof-of-stake consensus mechanism, layered architecture, and focus on security and sustainability, Cardano has emerged as a popular and promising blockchain network in the cryptocurrency space.
For further information, read this article
