What is Cardano
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:[email protected]) for help.
Supported Networks
Tangem Wallet supports Cardano on these networks
- Cardano
- BNB Beacon Chain
- BNB Smart Chain
Cardano official links
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Cardano FAQ
- Owning cryptocurrency can be important for several reasons: it provides a decentralized way to store and transfer value, offers potential for investment growth, enables participation in emerging financial technologies, and can be used for secure and private transactions.
- A cryptocurrency wallet is a tool or device that allows you to store, manage, and use your cryptocurrency. It keeps your private keys secure and enables you to interact with various blockchain networks, including Bitcoin and Ethereum.
- When choosing a cryptocurrency wallet, consider factors such as security, ease of use, and cryptocurrencies supported. Also determine whether you prefer a hardware or software wallets. Research reviews and compare features to find the best option for your needs.
- Cardano’s PoS mechanism, Ouroboros, is unique because it was the first to be peer-reviewed and is designed to be highly energy-efficient. It uses a combination of random leader selection and stake delegation, which enhances security while maintaining decentralization.
- Cardano's layered architecture, separating the settlement layer from the computation layer, allows developers to update and enhance each layer independently. This modular approach increases flexibility and supports the development of more complex and scalable applications.
- Cardano’s development is heavily based on academic research, with all protocols being peer-reviewed before implementation. This ensures that the platform is built on solid theoretical foundations, potentially leading to a more secure and reliable blockchain compared to others that may not follow such rigorous standards.
- Yes. You can buy, sell, swap, and soon stake Cardano (ADA) in Tangem Wallet.
Why choose Cardano wallet with Tangem.
Private. No registration and KYC required to use the app. We don't track your data.
Secure. Your private keys are encrypted and never leave your device. Only you have control over your funds.
Innovative Design Options. Choose from a variety of elegant designs, including unique co-branded editions and our innovative ring-form factor wallet, ensuring both style and functionality.
24/7 Online Support. Fast support for your needs. Live chat and email support for customers from all over the globe.