Cardano (ADA) is a decentralized blockchain that uses Proof-of-Stake (PoS) technology, making it more efficient than those that use Proof-of-Work (PoW). Like Ethereum, Cardano’s PoS system rewards users with cryptocurrency for their efforts in verifying and adding to the blockchain history.
Cardano aims to develop into a platform for decentralized applications (dApps) that serve various purposes and are managed by stakers. The cryptocurrency used on this blockchain is called ADA, named after Augusta Ada King, Countess of Lovelace, who is often seen as the first computer programmer. You can buy ADA on most major cryptocurrency wallets and exchanges.
History of Cardano
Charles Hoskinson, one of the co-founders of Ethereum, left the project because he disagreed with its direction. He started working on Cardano in 2015 and launched the blockchain network with its first mined block in 2017.
Cardano sees itself as a newer version and an alternative to Ethereum, calling itself a “third-generation” platform, while Ethereum is labeled as “second-generation.” ADA aims to offer banking services to people who do not have access to them.
The Cardano Foundation, a non-profit organization, was created in 2017 to manage the growth of the Cardano blockchain and encourage its use. Before this, IOHK, an engineering firm, was the main developer of the Cardano blockchain. The Cardano blockchain has experienced four significant hard forks: Shelley, Alonzo, Vasil, and Valentine.
The Shelley hard fork changed ADA from a federated Byzantine Fault Tolerance (fBFT) system to a more decentralized Proof of Stake (PoS) system known as Ouroboros. The Alonzo hard fork introduced smart contracts to the Cardano blockchain, allowing many decentralized applications (dApps) to be developed. The Vasil hard fork added scalability improvements to enhance dApp performance, including larger block sizes, better transaction processing, and new scripting features.
In February 2023, the Valentine upgrade took place, leading to a scheduled hard fork. This update aimed to enable the development of more efficient cross-chain applications and to support additional protocols.
Conclusion
Cardano is a decentralized proof-of-stake blockchain that started in 2015 and went live in 2017. It aims to be a better option than proof-of-work blockchains like Bitcoin due to its energy efficiency and scalability. The goals for Cardano’s growth are high. The team behind it envisions a fully decentralized system in the future, with features for voting and managing funds on the blockchain.