Cardano

Cardano provides a secure and sustainable environment that lets users transact value and build decentralized applications and systems devoid of third-party interference.

Overview

Cardano is a peer-reviewed blockchain platform that aims to provide unparalleled security and sustainability to decentralized applications and systems. The relatively new blockchain redistributes power from unaccountable structures to individuals through its decentralized finance (DeFi) system, enabling members to transact and exchange values without control-freak intermediaries.

In addition to these, Cardano enables developers to build and deploy smart contracts and decentralized applications (dApps) at lower gas fees and lesser network difficulties like congestion than most of its peer networks. The third-generation blockchain technology can also support hundreds of transactions per second (TPS). Some analysts believe its layer 2 Hydra protocol could raise the network’s throughput to over a million TPS when deployed.

The blockchain network serves a broad user base, including government, app developers, organizations, and anyone with an internet connection. It utilizes energy-efficient and environmentally friendly proof-of-stake (PoS) protocol to validate on-chain transactions. Furthermore, Cardano enables token holders to delegate their stakes to any of the platform’s existing pools to earn a reward. 

Additionally, the blockchain has an in-built governance mechanism that democratizes decision-making. The governance process allows token holders to earn ADA, Cardano’s native cryptocurrency when voting on key community-driven proposals. Also, the platform supports the creation of NFTs, and it can integrate into existing websites and services. 

Product details

Cardano uses ADA, its native token, to facilitate secure value exchange without third-party intermediaries. The cryptocurrency named after Ada Lovelace, a 19th-century mathematician and the first computer programmer, powers the blockchain’s financial and governance system. In addition to facilitating exchange and helping users store value, the token lets holders participate in the network’s governance process, allowing them to vote for key proposals. Furthermore, users can buy or sell ADA for fiat or swap with other digital currencies via cryptocurrency exchanges.

Cardano lets users create either full-node or browser-based cryptocurrency wallets to store and manage their assets. Full-node cryptocurrency wallets like Daedalus run on desktops such as Windows, macOS, and Linux, making them handy and easily accessible. A Cardano full-node wallet downloads a full copy of the blockchain and independently validates every transaction, making it secure and safe. Also, the encrypted private keys and spending passwords secure the wallet against threats. Conversely, the Yoroi browser-based wallets provide a straightforward way to transact ADA. They eliminate the need to download the blockchain history’s copy. Cardano also supports third-party wallets.

Cardano allows token holders to delegate their stake to a stake pool or run their stake pool to earn rewards. Stake pool operators ensure consistent uptime of a node. However, token holders who lack the skills or desire to run a node can delegate their stakes. Stake delegation lets the stake pool’s node add new blocks to the network, making it more decentralized and tamper-proof. As a result, the platform rewards the pool members in proportion to the amount of stake they delegate. 

Cardano’s decentralized on-chain governance model gives everyone a voice over future development. The community-driven governance process enables token holders to decide the future of the blockchain and dictates the use of its treasury funds. In addition, the governance mechanism incentivizes them to vote on proposals to develop or upgrade the blockchain and ecosystem. Asset holders can vote on Funding Proposals (FP) or Cardano Improvement Proposals (CIP). Any community member can submit a funding proposal for future platform development, developing new integrations or capabilities. A member can vote by temporarily depositing ADA. Conversely, CIP usually proposes protocol-level changes. Voting on CIP is via the CIP GitHub repository.

Cardano developer portal helps application builders learn Cardano development, access builder tools, and connect to the developer community. The portal provides developers a quick overview of the blockchain, lets them understand its components, and connects builders to the developer community. Additionally, developers learn to integrate Cardano into existing websites and services, including creating Cardano wallet and basic transactions. The developer portal also guides them on embedding metadata into transactions. It lets them validate and verify external physical products, authenticate credentials or establish immutable information records. Furthermore, developers also learn to create NFTs, smart contracts, or operate a stake pool.

Cardano supports the deployment of smart contracts and allows developers to build and run decentralized applications. The platform enables development teams to create smart contracts on its Plutus development platform, unlike Ethereum that supports Solidity-compatible applications. Following the September 2021 Alonzo upgrade, which empowers the blockchain with smart contract capabilities, Cardano currently has over 900 smart contracts live on its mainnet. The upgrade allows developers to deploy DeFi apps on the blockchain using the new smart contract functionality to widen the ecosystem. Empowa, which aims to address the severe shortage of affordable housing in Africa, is one of the projects on the Cardano ecosystem.

Cardano uses Ouroboros, an environmentally sustainable proof-of-stake protocol, to validate and ensure network security. The protocol improves the security guarantees of the proof-of-work at a fraction of the energy cost. According to the Cardano team, Ouroboros applies cryptography, combinatorics, and mathematical game theory to ensure the protocol’s integrity, longevity, and performance and that of the distributed networks depending on it. The protocol doesn't rely on miners. Instead, it selects stake pools to create new blocks based on the amount of stake they control on the platform, increasing Cardano’s performance by adding new nodes instead of scaling vertically through new hardware addition.

Cardano supports decentralized finance (DeFi) system accessibility and development of non-fungible tokens (NFTs). The DeFi platform allows users to carry out peer-to-peer transactions without facing any regulatory measures or third-party interference, allowing them total freedom to do their finances without looking over their shoulders. Furthermore, the network lets anyone with an internet connection join the blockchain, hold ADA, and control where it goes as they wish. Additionally, Cardano supports users in creating NFTs, tokenizing their valuables, and trading their NFTs online. These digital assets come with exclusive ownership rights since they can have only one owner at a time. They also contain unique data and signatures that make them easily verifiable.

Recaps

Cardano is a decentralized open-source blockchain that uses ADA, its native digital currency, to power the platform’s financial and governance systems. The network is free from government and institutional regulatory measures. Furthermore, it offers lesser transaction fees, providing a quick alternative to builders that want to cut costs. It also supports them with venture funds.