Cardano (ADA) is a decentralized proof of stake (PoS) blockchain, and ADA is the native coin that drives the Cardano blockchain.
Cardano is an open-source blockchain platform powered by ADA cryptocurrency token, widely used to host globally decentralized systems and applications.
Unlike many other blockchain networks, Cardano does not rely on the technical basis of Bitcoin or other blockchains. Instead, Cardano collaborates with top academics on research to create fresh, creative ideas that are reviewed by other academics and presented at significant international conferences.
Who Founded Cardano?
Cardano was founded in 2015 by Charles Hoskinson, one of the founding members of Ethereum. The development of Cardano was funded through an initial coin offering in 2017, which raised over $60 million. The first version of Cardano’s blockchain was launched in September 2017, which focused on establishing the Cardano Settlement Layer and the Ouroboros consensus algorithm.
In the next phase, Cardano focused on optimizing decentralization by shifting in favour of community-run nodes. Next came smart contracts and the creation of decentralized applications, and Cardano is now in the scaling phase, which is focused on enhancing its performance and stability.
What Makes Cardano Unique?
Cardano uses a unique Proof-of-Stake mechanism known as Ouroboros, where transactions are verified by splitting the chains into epochs, which are in turn segmented into time slots. For every time slot, a new slot leader is elected and is responsible for adding a block to the chain for their assigned slot.
As each epoch can be partitioned infinitely, the Cardano blockchain is theoretically infinitely scalable, making it possible to run multiple transactions simultaneously.
How Can ADA Be Used?
ADA is the native coin of Cardano, and it is named after Ada Lovelace, who is recognized as the first computer programmer. At the moment, ADA holders can delegate their coins to a stake pool to earn staking rewards for securing the network.
Also, ADA tokens are needed to pay transaction fees on the Cardano platform. Eventually, ADA will also confer voting rights upon its holders, who can then vote on future changes to the network.