What is Cardano (ADA)?

A safe, scalable, and decentralised ecosystem for developing decentralised applications (dApps) and smart contracts is what Cardano (ADA), a blockchain platform and cryptocurrency, intends to provide. Cardano has established itself as a prospective participant in the blockchain industry with a rising market capitalisation thanks to its layered architecture, PoS consensus method, and emphasis on peer-reviewed research.

The History of Cardano

The creation of Cardano dates back to September 2017, when it was introduced by Ethereum co-founder Charles Hoskinson. It was created in association with the Cardano Foundation and Emurgo by the blockchain research and development business IOHK (Input Output Hong Kong).

The Use Case of Cardano

Cardano attempts to tackle some of the major issues that blockchain platforms encounter, including as scalability, security, and interoperability. The Cardano Computation Layer (CCL) and the Cardano Settlement Layer (CSL) are two layers of the blockchain that are separated by a layered design.

The CCL is in charge of carrying out smart contracts and dApps, while the CSL is in charge of accounting and transactions. As modifications to the CCL layer do not affect the CSL, this separation enables scalability and makes it simpler to update and enhance the platform. Additionally, Cardano makes use of the Ouroboros protocol, a Proof of Stake (PoS) consensus mechanism that is both secure and energy-efficient. Comparing Cardano to Proof of Work (PoW) based blockchains like Bitcoin, PoS enables ADA holders to participate in the block validation process and earn rewards.

Cardano's emphasis on academic collaborations and peer-reviewed research is another important aspect of the platform. Leading research organisations and universities help the development team ensure that the platform is designed using good scientific concepts, making it a reliable and secure blockchain solution.