ADA Cardano is one of the most promising projects in the cryptocurrency world, offering a robust infrastructure for smart contracts and decentralized applications. Launched in 2017, this innovative blockchain quickly attracted attention due to its advanced technology and scientific approach. But who are the founders of ADA Cardano and what makes this project so different from other cryptocurrencies? In this article, we’ll explain how the project came about, the key development phases and the reasons that make it a worthy investment option.
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What is ADA Cardano
ADA Cardano is a distributed computing platform that utilizes blockchain technology and supports the cryptocurrency Ada. The project was launched in 2017 and is led by blockchain technology firm Input Output Hong Kong (IOHK), under the leadership of Charles Hoskinson, one of the co-founders of Ethereum.
Who is Charles Hoskinson
Charles Hoskinson is a well-known personality in the blockchain community, being a mathematician and entrepreneur with a deep passion for decentralization. After his significant contribution to Ethereum, Hoskinson realized that the cryptocurrency industry had unmet needs, such as scalability, energy efficiency, and interoperability between various blockchains.
In 2015, Charles Hoskinson founded IOHK (Input Output Hong Kong), a company dedicated to blockchain research and development. IOHK is the engine behind Cardano, constantly working to provide a sustainable and secure blockchain platform.
What are the goals of the Cardano ADA platform
The primary purposes of the Cardano platform include running smart contracts, decentralized applications (dApps), side chains, and other advanced functionalities. Cardano was developed to solve problems identified in other blockchain networks, such as high power consumption, lack of scalability and security issues.
What is the consensus mechanism used by ADA Cardano
Unlike many existing blockchains, ADA Cardano utilizes a Proof-of-Stake (PoS) consensus mechanism called Ouroboros, which makes it more energy-efficient compared to the Proof-of-Work (PoW) mechanism used by Bitcoin or Ethereum (in its initial version).
Cardano ADA operates on two main layers:
- Cardano Settlement Layer (CSL): this functions as a ledger that manages transactions and storage of ADA coins.
- Cardano Computation Layer (CCL): This is the layer dedicated to managing smart contracts and decentralized applications. This separation allows Cardano to update or enhance certain functionality without affecting the entire ecosystem.
Why Cardano is unique
Cardano is not just an ordinary blockchain; it’s a project built on solid scientific research and a well-defined methodology. Here are some of the features that make it unique:
- The scientific approach
What makes Cardano truly special is its methodology based on academic research. The platform was developed through a formal mathematical verification process (called peer review), which means that all concepts and protocols are reviewed and validated by researchers before implementation. Every step of the development has been documented and analyzed, which gives users the assurance that the project is scalable and secure.
- Ouroboros algorithm
Cardano utilizes a unique consensus algorithm called Ouroboros, one of the first formally certified Proof-of-Stake (PoS) protocols. Unlike the Proof-of-Work (PoW)-based consensus mechanisms used by Bitcoin, Ouroboros is highly energy-efficient and environmentally friendly.
- Focus on interoperability and scalability
Another major advantage of Cardano is its modular structure, which enables interoperability between multiple blockchains. The system is also capable of handling a large volume of transactions thanks to its layered scaling solutions. This layered structure provides flexibility and efficiency, reducing the risk of network congestion.
- Long-term sustainability
Cardano’s founders also considered the financial sustainability of the network. Cardano employs a system of managing funds collected from transaction fees and other sources, whereby a portion of the fees collected is reinvested in the continued development of the network. This eliminates the need for constant external funding.
- Global support and key partnerships
Another unique aspect of Cardano is its social impact. The project has a global vision, focusing on solutions that can improve the lives of people in developing countries. For example, Cardano works with governments and organizations in Africa to implement transparent blockchain solutions in sectors such as education and agriculture
Programs and collaborations:
- Education: Atala program to verify academic credentials in Georgia.
- Innovation: Cardano partnered with footwear manufacturer New Balance to create a pilot program that uses blockchain technology to track product authenticity.
- Ethiopia: Cardano worked with the government of Ethiopia to implement a blockchain-based digital identity system for 5 million students
- Working with the European Union to develop blockchain solutions that comply with European data protection regulations.
The advanced technologies used by Cardano, such as the multi-layered architecture and the use of the Haskell programming language, demonstrate this blockchain’s commitment to providing sustainable and reliable solutions. View Cardano’s ADA Cardano whitepaper here.
ADA Cardano: What is the Ouroboros mechanism
To maintain network security and confirm transactions, ADA Cardano uses Ouroboros, an advanced Proof-of-Stake protocol. This protocol allows participants to ‘block’ ADA coins, and slot leaders, i.e. participants randomly selected from those who have staked, are assigned to create new blocks.
Put simply, Cardano chooses validators not by computational power, but by the amount of ADA each user blocks.
What is the Ouroboros mechanism?
Ouroboros is the first proof-of-stake (PoS) protocol that has been mathematically proven to be secure. Unlike proof-of-work (PoW) protocols, it provides a sustainable and energy-efficient alternative for blockchain networks. Ouroboros was created based on peer-reviewed research and combines advanced technology with economic philosophy and behavioral psychology.
Benefits of the Ouroboros mechanism
Mathematically verifiable security
The mechanism provides strong safeguards against cyber attacks. As long as 51% of the total stake (in Cardano’s case, ADA) is held by honest participants, the network remains secure.
Energy efficiency
Ouroboros requires a fraction of the energy consumed by PoW mechanisms like the one used by Bitcoin. It is up to four million times more energy efficient, contributing to a sustainable future.
Scalability and performance
Ouroboros allows networks to scale by adding nodes to the network, increasing performance without requiring powerful hardware or high power consumption.
Rewards and economic sustainability
The protocol includes a system of incentives for participants. Those who operate stake pools or delegate their ADA to stake pools can earn rewards, thus ensuring network sustainability.
The stake pool system
The network is based on stake pools operated by nodes. Each slot in the network randomly selects a slot leader, who receives a reward for adding a block to the blockchain.
How does the Ouroboros mechanism work?
Ouroboros divides the blockchain into epochs, which are subdivided into time slots. For each slot, a leader is chosen at random and is responsible for adding a block to the chain. This process ensures distribution and fairness of participation in the network.
To protect the integrity of the network, each leader must consider the last few blocks as “transient”. Only the blockchain that precedes a certain number of transient blocks is considered secure.
This mechanism, called settlement delay, is the key to the security and stability of the ADA Cardano blockchain.
Why is Ouroboros a revolutionary mechanism?
Ouroboros is defining the future of blockchain by implementing a secure, efficient and scalable model that overcomes the shortcomings of traditional models such as PoW. It is a perfect example of how technology can evolve to meet the demands of an ever-changing environment. Using Ouroboros, Cardano has succeeded in creating a blockchain that is technologically advanced, yet environmentally friendly at the same time.
ADA Cardano Hard Forks
In the blockchain world, a “hard fork” is a radical change to the protocol that renders previously valid blocks and transactions invalid. This often results in the creation of two separate blockchains: the old and the new.
What is a hard fork in Cardano?
In the context of the Cardano ADA, a hard fork is the upgrade of the network to a new version, including advanced features or substantial improvements. Unlike hard forks in other blockchain ecosystems that can create parallel systems (such as Bitcoin and Bitcoin Cash), ADA Cardano hard forks are non-disruptive. They are backed by a collective consensus of stake pool operators (SPOs) and the blockchain community, which ensures a smooth transition.
How does this happen?
Unlike other systems, Cardano’s ADA does not view a hard fork as a separation, but rather a planned and coordinated transformation. All nodes in the network simultaneously transition to a new era, implementing advanced functionality or new validation rules in design development phases developed based on rigorous research.
Cardano Hard Forks Timeline
Over time, Cardano has gone through several major updates, each marking a step towards improving network performance. Here’s what each era has brought:
Byron Era
- Launch: The first Cardano protocol. During this era, the technological foundations of Cardano were laid, including the implementation of the Ouroboros Classic consensus protocol.
- Key functionality: introduction of the ADA cryptocurrency
- Purpose: Establishing a robust foundation for blockchain
- Protocol version: 1.0
Essentially, the Byron era was a pioneering phase in which the basic infrastructure of the Cardano blockchain was built.
Shelley Era
- Launch: decentralization and staking opportunities
- Key functionality: Moving from a centralized to a decentralized network
- Impact: Users became active participants through staking
- Protocol version: 2.0
Shelley allowed users to directly contribute to the security and stability of the blockchain, reinforcing the decentralization aspect.
Allegra Era
- Key feature: Introducing support for token blocking. This allows blocking tokens for a certain period of time, opening new possibilities for decentralized applications (dApps) and on-chain governance.
- Applicability: Preparatory scenarios for smart contracts
- Protocol version: 3.0
Blockchain tokenization paved the way for new use cases, including blockchain voting. The Allegra era paved the way for the introduction of functionalities that enabled native asset management on Cardano.
Mary Era
- Key functionality Mary introduced native asset support on the Cardano blockchain. This means that users can create and manage their own personalized tokens directly on the network without the need for complex smart contracts.
- Major benefit: Create and trade personalized tokens
- Protocol version: 4.0
Mary has transformed ADA Cardano into a multi-asset ecosystem, similar to Ethereum, but more cost-efficient.
Alonzo Era
- Key feature: Introducing smart contracts with Plutus
- Impact: Launch of decentralized applications (dApps)
- Protocol version: 5.0 and 6.0
This was a monumental milestone for developers interested in dApps on the Cardano ADA platform.
Babbage Era
- Functionalities:
- Performance and scalability enhancements
- Optimizations for Plutus
- Protocol version: 7.0 and 8.0
This era is named after Vasil Dabov, an esteemed member of the Cardano community, and brought a faster network with lower costs.
Conway Era
- Key Features:
- First wave of decentralized governance (CIP-1694)
- New network management functions through the DRep role
- Protocol version: 9.0 and 10.0
Conway is paving the way for a self-governing future, strengthening the foundation for a truly autonomous-economic community.
What do these updates mean for users?
- A more stable and secure network: Updates in each era have been implemented to make ADA Cardano faster, more scalable and more secure.
- More advanced functionality: From creating customized tokens to running complex smart contracts, users have continuous access to new features.
- Active Participation : Decentralized governance allows every user to contribute to the future direction of blockchain.
- Low transaction costs : Performance improvements optimize costs, making ADA Cardano an attractive choice in the blockchain industry.
What is ADA, Cardano’s native token
ADA is Cardano’s native cryptocurrency, used in the ecosystem to facilitate transactions, support decentralized applications and reward network participants. Officially launched in 2017, 57.6% of the total ADA supply was allocated to investors in an initial coin offering (ICO), through which Cardano raised $62.2 million.
How many Cardano (ADA) cryptocurrencies are in circulation. Marketcap.
Unlike some digital currencies that have no fixed cap, the ADA offering has a maximum cap of 45 billion tokens.
At the time of this writing, according to CoinGeko, about 36 billion ADA coins are in circulation. Here are details on its initial distribution:
- Between September 2015 and January 2017, IOHK (Input Output Output Hong Kong) organized five rounds of public sales, allowing investors to back the project and obtain ADA tokens at initial prices.
- ADA 2.5 billion was allocated to IOHK to fund the network development.
- ADA 2.1 billion was provided to EMURGO for its contributions to the Cardano Foundation.
- ADA 648 million was distributed to the Cardano Foundation for network promotion and adoption.
ADA Marketcap: 24,557,435,426 USD
ADA price evolution over time
2017-2018: Launch and First Growths
- ADA entered the market in 2017 during a general wave of excitement for digital assets.
- In January 2018, the price reached over $1, marking its first all-time high.
- After that initial boom, the value began to decline significantly, reflecting a market correction.
2019-2020: Period of Consolidation
- These years marked a relative stabilization of the ADA price, although there were moderate fluctuations.
- The team behind Cardano worked on the technology development of the project, preparing for the launch of the Shelley upgrade, a key step towards full decentralization of the network. As of December 2020, the ADA price is hovering around USD 0.1688.
2021: Explosive Growth
- 2021 has been a turning point for ADA, fueled by an increased general interest in cryptocurrencies and the success of the Shelley update.
- In September 2021, ADA reached an all-time high of USD 3.10.
2022-2024: Decline and consolidation
- The global economic neighborhood and the return of a bear market for cryptocurrencies led to a significant decline in the ADA price in 2022 and 2023. The ADA price fluctuated mostly in the range of USD 0.23 – USD 0.40.
- However, the Cardano ADA ecosystem continues its expansion, and the community remains active and confident in the future of the project.
In November 2024, amid Donald Trump’s return to the White House, the cryptocurrency market experienced a period of significant bullishness, and ADA also saw a considerable increase in value, reaching a price of 1.3189 in December 2024.
Today, 01.04.2025, one ADA token is worth approximately $0.68 USD.
Mining and Staking in ADA Cardano
There are two main methods for staking in ADA Cardano:
- Running your own node unit: this process requires advanced technical knowledge. The owner of such a node receives a higher reward for the work done.
- Delegating operations: Those who do not wish to manage their own node can delegate ADA currency to an existing node operator. In this case, the benefit is shared between the delegator and the node operator.
Staking in Cardano is not only profitable but also facilitates network scalability, relying on active participation from the community.
Conclusion
ADA Cardano represents the future of blockchain as it combines academic research with practice to provide scalable, secure and innovative functionality. Whether you are an investor looking to better understand this revolutionary project or exploring new technology opportunities, Cardano has the potential to play a pivotal role in transforming the blockchain sector.
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