Cardano is a Layer 1 blockchain with the intent to be scalable, secure, and sustainable. It operates with the $ADA cryptocurrency and uses the Ouroboros Proof-of-Stake (PoS) consensus mechanism to secure the network.
What is Cardano
Here's how it works:
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Cardano Origins: Cardano was founded in 2015 by Charles Hoskinson (a co-founder of Ethereum) and Jeremy Wood. Cardano blockchain was officially launched in 2017.
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Organizational Structure: The project is developed and maintained by three key entities:
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IO (Input Output): Focuses on blockchain research, engineering, and development.
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Cardano Foundation: Oversees ecosystem growth, community engagement, and regulatory compliance.
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EMURGO: Drives commercial adoption and funds ecosystem development.
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Planned Upgrades: The project brands itself as a scientifically-driven blockchain that evolves through structured upgrade phases. Cardano is currently in the late stage of the Basho era and is actively transitioning to the Voltaire era. The Basho upgrade brought scaling improvements and enabled cross-chain interoperability. After the Voltaire upgrade, Cardano will transition from IO company's management to a fully decentralized governance system. It will be run by the $ADA token holders and the community.
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Blockchain Design: It has two-layer architecture. Settlement Layer that handles $ADA transactions and Computation Layer that supports smart contracts and decentralized applications.
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Transaction Model: One of the biggest differences between Ethereum and Cardano is how they handle transactions and fees. Ethereum works like a bank account. Users have a balance, and when they send money, it subtracts from their account and adds to someone else’s. Cardano works more like physical cash. When users spend $ADA, they use a specific "coin" amount and get back change if needed. Cardano follows improved Bitcoin-style transaction system (UTXO model).
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Programming Language: Cardano’s core blockchain is built using Haskell programming language. For smart contracts, it uses Plutus. Plutus is a smart contract language built on Haskell, designed specifically for writing and executing smart contracts on Cardano.
To sum it up, Cardano is one of the largest blockchain projects by market capitalization. Its ongoing development is focused on enhancing the scalability and expanding its ecosystem of projects.
Team of Cardano
Charles Hoskinson
Founder
Charles is a well known figure in the cryptocurrency space. He pursued studies in analytic number theory at Metropolitan State University of Denver and the University of Colorado Boulder. Charles was one of the original eight co-founders of Ethereum. He departed in 2014 due to differing visions regarding Ethereum's commercial versus non-profit direction.
Cardano review
Cardano undeniably has one of the most loyal and supportive communities in crypto. This is largely due to the founder Charles Hoskinson, who has built a strong narrative around the project. Many would argue that in crypto, community and belief matter more than pure technical superiority.
When we look strictly at Cardano’s adoption and the ecosystem, it falls short in comparison to competitors. The ecosystem is developing slowly because it relies on research and peer review. While this method is good in theory, it causes delays and slow adoption.
Pros
Predictable and Low Fees
Cardano’s UTXO model keeps transaction fees stable, unlike Ethereum’s fluctuating gas costs. This makes it easier for users and businesses to plan expenses.
Decentralization
Thousands of independent stake pools secure the network, reducing centralization risks. A decentralized system makes Cardano more secure and resilient.
Energy-Efficient Consensus Mechanism
Cardano’s Ouroboros Proof-of-Stake (PoS) consensus is being promoted for being significantly more energy-efficient than Bitcoin, and other Proof-of-Work (PoW) blockchains.
No Slashing (Safer Staking)
$ADA holders can stake without the risk of losing funds, unlike other blockchains with slashing penalties. This makes staking safer and more appealing.
Real-World Adoption
Cardano partners with governments and businesses for blockchain use cases like supply chain tracking and digital identity. These partnerships show its focus on real-world utility.
Cons
Slow Development
A research-driven approach ensures security, but delays new features. This slow rollout makes Cardano less competitive in fast-moving markets.
Lower Adoption
Difficult for Developers
Most of the developers don’t know how to code in Cardano’s Plutus smart contract language. Learning it takes time, slowing down adoption.
Tough Competition
Faster blockchains like Solana and Avalanche attract more users with better speed and scalability. Cardano’s slower transactions make it harder to compete.
Opportunities
Staking
APY: 2.5-5%
Cardano Staking
Learn how to stake Cardano and get a chance to earn rewards.