Cardano wallet

What is Cardano

History

Cardano was launched in September 2017 by Input Output Hong Kong (IOHK), a blockchain research and development company led by Charles Hoskinson, one of the co-founders of Ethereum. Cardano was created with the goal of providing a more balanced and sustainable ecosystem for cryptocurrencies. It aimed to address the limitations of existing blockchain platforms, such as scalability, interoperability, and sustainability. Cardano's development was guided by academic research and peer-reviewed processes, making it one of the most rigorously developed blockchain platforms.

Creators and Developers

Cardano was primarily developed by IOHK, a company founded by Charles Hoskinson and Jeremy Wood. Charles Hoskinson, who played a significant role in the early development of Ethereum, decided to take a different approach with Cardano, focusing on a research-driven methodology. The platform also has the support of the Cardano Foundation, which oversees the development of the ecosystem, and Emurgo, which drives the adoption of Cardano by working with commercial ventures.

Technology

Cardano operates on a unique, layered blockchain architecture. The platform is divided into two main layers: the Cardano Settlement Layer (CSL) and the Cardano Computation Layer (CCL). The CSL handles the cryptocurrency transactions using ADA, Cardano’s native token, while the CCL is responsible for executing smart contracts and decentralized applications (dApps). This separation allows for more flexibility and scalability.

Cardano uses the Ouroboros proof-of-stake (PoS) consensus mechanism, which is one of the first provably secure PoS protocols. Ouroboros divides time into epochs, which are further subdivided into slots. Slot leaders are chosen to validate transactions and produce new blocks, ensuring energy efficiency and security.

Mining and Issuance

Unlike Bitcoin, which uses a proof-of-work (PoW) consensus mechanism, Cardano uses proof-of-stake (PoS). ADA holders can participate in the network's staking process by delegating their tokens to a stake pool or by operating a stake pool themselves. Rewards are distributed based on the amount of ADA staked, incentivizing network participation and security. Cardano has a fixed supply of 45 billion ADA, of which approximately 31 billion are currently in circulation.

Networks and Support

Cardano is a standalone blockchain that does not rely on other blockchain networks like Ethereum or Binance Smart Chain. However, Cardano has been actively working on interoperability solutions, such as cross-chain bridges, to connect with other blockchain ecosystems. The platform also supports decentralized finance (DeFi) applications and has seen growing adoption across various sectors.

Application and Usage

Cardano is designed to support a wide range of applications, including decentralized finance (DeFi), supply chain tracking, identity management, and more. Its smart contract capabilities were fully realized with the Alonzo upgrade in September 2021, which enabled the deployment of smart contracts on the platform. Cardano is also focusing on improving governance through its Voltaire era, which will introduce decentralized voting and treasury systems.

Popularity and Market Capitalization

Cardano is one of the top cryptocurrencies by market capitalization, often ranking within the top 10. Its value has seen significant growth since its launch, driven by its innovative technology and strong community support. Despite fluctuations in the broader cryptocurrency market, Cardano has maintained a strong position due to its long-term vision and research-driven approach.

Unique Features and Innovations

One of Cardano's unique features is its use of a layered blockchain architecture, which separates the ledger of account values from the reason why values are moved. This separation allows for the implementation of complex features without compromising network security. Additionally, Cardano's emphasis on formal verification and peer-reviewed research ensures that the platform is built on a solid theoretical foundation.

Partnerships and Integrations

Cardano has established partnerships with various organizations and governments, particularly in developing countries. For example, IOHK partnered with the Ethiopian government to create a blockchain-based system for tracking student and teacher performance in schools. This is part of Cardano's broader mission to drive financial inclusion and social change through blockchain technology.

Community and Media

Cardano has a large and active community that participates in various forums, social media platforms, and events. The Cardano Foundation plays a crucial role in community engagement, organizing events and promoting educational initiatives. The platform is also frequently discussed in cryptocurrency media, especially regarding its technological advancements and partnerships.

Legal Status and Regulation

Cardano, like many cryptocurrencies, operates in a complex and evolving regulatory environment. While it is not considered a security by regulators in most jurisdictions, the platform's compliance with regulations is an ongoing focus. Cardano's emphasis on governance and transparency positions it well for navigating future regulatory challenges.

Real-World Use Cases

Cardano's technology is being used in various real-world applications, particularly in developing countries. For instance, in addition to the Ethiopian education project, Cardano is being explored for use in agricultural supply chain tracking, identity solutions, and other areas where transparency and security are critical. These use cases highlight Cardano's potential to drive social impact and innovation.

How to secure your Cardano wallet

**Always back up your wallet**. Make sure you use all backup cards in your Tangem Wallet set to secure your Cardano wallet. Tangem's backup technology shares the private key among all Tangem cards in a set via the Diffie-Hellman protocol, removing dependence on recovery phrases and eliminating one attack vector. Tangem doesn't have access to or control your private keys. Keep your backup cards in a safe place. **Don't share your seed phrase**. Your seed phrase is a version of your wallet's private key. If you set up a Tangem Solana wallet with a seed phrase, keep it somewhere safe and never share it online or through text. **Watch out for phishing scams**. Always be careful of messages or emails asking for your wallet information. Check where they come from, and don't click on strange links. Remember, Tangem Wallet will never ask for your private keys or secret phrase. If you're not sure, ask our [support team](mailto:support@tangem.com) for help.