What is Cardano (ADA)?
Cardano is a general-purpose Proof of Stake (PoS) blockchain project. Known as a “third-generation” blockchain, Cardano is on a mission to solve the common scalability issues that plague most “second-generation” blockchains (such as Ethereum and its ever-increasing gas fees).Cardano’s development is guided by a rigorous scientific philosophy as well as extensive academic research and peer review.The Cardano project has developed an extensive development roadmap consisting of five main phases:Phase 1 – Byron: The network goes live with basic functionality (ADA transfers).Phase 2 – Shelley: Steps are being taken towards decentralization with community-governed nodes.Phase 3 – Goguen: Smart contracts are enabled on the network.Phase 4 – Basho: Sidechains are introduced, improving scalability and interoperability.Phase 5 – Voltaire: Governance and self-funding make ADA fully decentralized.Each phase in Cardano’s roadmap builds an integral part of the final network, and once completed, the network will be fully decentralized, governed by ADA holders and funded by a portion of the network’s own transaction fees.
How does Cardano work?
Cardano is considered a “third generation” blockchain. Essentially designed to solve the scaling issues commonly associated with first generation (Bitcoin) and second generation (Ethereum), Cardano (ADA) is proving to be a constant source of innovation.While previous generation blockchains often suffer from high transaction fees and low TPS (transactions per second) due to some limitations in their design, Cardano is being built from the ground up to provide a high TPS, low fee, truly decentralized Proof of Stake (PoS) network solution.Cardano aims to improve the overall speed and capacity of the network in several ways. Leading the way is ADA's Proof of Stake (PoS) consensus protocol, dubbed Ouroboros. Designed with efficiency in mind, Ouroboros significantly reduces the network's energy costs, especially compared to proof-of-work (PoW) mechanisms, without compromising security.The next layer 2 solution for the Cardano project is called Hydra. Designed to allow for theoretically infinite scalability, Hydra allows for increased throughput as each new node joins the network.
Cardano also has another unique feature:
the Hard Fork Combinator. Essentially, this innovation allows the network to branch without any real disruption to the blockchain. This was tested with the recent Shelley phase update and it worked flawlessly.
Who is the founder of Cardano?
Cardano (ADA) was founded by Charles Hoskinson, one of the co-founders of the Ethereum network. He is the CEO of IOHK, the company that develops the Cardano project.Hoskinson first became interested in cryptocurrencies in 2011, when he started mining and trading. His first professional foray into the world of cryptocurrencies came later in 2013, when he developed an educational course on Bitcoin that has since attracted over 80,000 students. After contributing to the early development of Ethereum and founding the Ethereum Foundation, Hoskinson left to pursue his own vision of a “third-generation” blockchain. Recognizing the scaling bottlenecks that traditional blockchains would inevitably encounter, the Cardano project was founded in 2015 as a way to usher in a new era of blockchain.
What makes Cardano unique?
What makes Cardano quite unique is that it is one of the largest blockchains to successfully use the Proof of Stake (PoS) consensus mechanism. PoS is a mechanism that consumes much less energy than the Proof of Work (PoW) algorithm that Bitcoin is based on.Ethereum is moving to PoS after seeing other projects benefit from it. However, the transition from Ethereum will take place over time and could be difficult at any time. Cardano is already running a full-fledged PoS network. Cardano developers pride themselves on ensuring that all technology developed undergoes rigorous peer-reviewed research, meaning that any ideas related to the network can be questioned before they are validated. This level of academic rigor makes the Cardano blockchain both resilient and stable – ensuring that many potential future issues are identified before they become real problems.
What makes Cardano (ADA) valuable?
ADA is the native token of the Cardano network, named after 19th-century mathematician Ada Lovelace. 57.6% of the total ADA supply was distributed to investors during an initial coin offering (ICO), in which Cardano raised $62.2 million.The ADA token is both a digital currency and a medium of exchange on the Cardano network (in the same way you need ether/ETH to transact on the Ethereum network). ADA holders also have a real stake in the Cardano network. ADA tokens can be used in staking pools to earn staking rewards, and in the future, the direction of the network will be entirely governed by ADA holders, who use their stake to vote on development decisions.
How many Cardano (ADA) tokens are in circulation?
There will only be a maximum supply of 45 billion ADA.At the time of writing, the current circulating supply of Cardano (ADA) is approximately 31 billion. Between September 2015 and January 2017, IOHK held five separate public sales, allowing interested investors to obtain ADA tokens and support early development.An estimated 2.5 billion ADA were allocated to IOHK after the network launched, while an additional 2.1 billion ADA were given to EMURGO, an international blockchain development company, to work on the initial foundation of the Cardano protocol. Additionally, 648 million ADA were donated to the Cardano Foundation to promote the platform and drive adoption.Ultimately, approximately 16% of ADA's circulating supply went to the project's founders, with the remaining 84% distributed to investors..