Cardano (ADA)

What is Cardano (ADA)

Cardano is a public blockchain platform and smart contract development platform that is similar to Ethereum.

Founded in 2015, Cardano touts itself as the first blockchain platform in the crypto industry to be founded on peer-reviewed research. Its blockchain is powered by Ouroboros, a proof-of-stake protocol that its proponents claim has improved upon the foundations of other consensus mechanisms.

ADA is the multi-purpose native token of Cardano and powers all transactions on the network. It also provides rewards to network validators (also called stakers). These users help secure the network and verify new transactions entering the Cardano blockchain.

The Cardano blockchain provides a secure way for users to store and send ADA over the network. This factor includes native tokens created on top of the Cardano blockchain. Additionally, it provides functionality for developing decentralized applications.

 Who created Cardano?

A team of experts in the cryptocurrency and blockchain technology industries created Cardano (ADA), led by Jeremy Wood and Charles Hoskinson. Hoskinson was a co-founder of Ethereum and left the project in 2014 to create his own blockchain platform. Together, Wood and Hoskinson formed Input Output Hong Kong (IOHK), the research and development company behind Cardano. IOHK later rebranded to Input Output Global (IOG).

The broader team behind Cardano includes researchers, engineers, and developers from around the world. The team has focused on developing Cardano through a scientific approach, with a strong emphasis on peer-reviewed research and academic collaboration.

Launched in 2017, Cardano quickly became one of the most popular blockchain platforms in the cryptocurrency industry.

The Cardano Foundation is a non-profit organization based in Switzerland that oversees the development and adoption of Cardano. It promotes the use and development of Cardano, provides education and resources, and governs the Cardano ecosystem. Additionally, it collaborates with other organizations to advance the adoption of blockchain technology.

A for-profit investment arm called Emurgo provides support to prospective Cardano developers and promotes the business integration of Cardano’s blockchain services.

How does Cardano (ADA) work?

Cardano (ADA) is a blockchain platform that uses a consensus protocol mechanism called Ouroboros, a proof-of-stake (PoS) protocol that enables fast and secure transactions.

The native coin of the Cardano blockchain is ADA, which has a maximum supply of 45 billion coins. Cardano’s tokenomics include a built-in treasury system and a mechanism for funding future development through a decentralized governance system.

Validators process transactions on the Cardano blockchain. To do this, they must first lock away an amount of native tokens in a staking smart contract.

Holders use specific crypto wallets to store ADA. These can be either hardware wallet or software-based wallets. Cardano allows users to stake Cardano ADA coins to earn rewards and participate in the management of its blockchain network.

Soon, holders of ADA will be able to vote on changes made within the protocol, giving them direct control over its features and operation. Cryptocurrencies that allow holders to vote on the future development of the blockchain protocol they are associated with are known as governance tokens. Governance features are expected to go live once the Voltaire phase of Cardano’s development begins.

Cardano (ADA) roadmap development phases

Byron – Launched in 2017

The Byron phase was the first phase of Cardano’s development and focused on the foundation of the project. During this phase, the team focused on building the core infrastructure of the blockchain, including the node and wallet software. The team also worked on improving the security and scalability of the network, as well as developing the framework for the Cardano Improvement Proposal (CIP) process. The Byron phase ended in September 2017, marking the official launch of Cardano.

Shelley – Mainnet launched in 2020

The Shelley phase was the second phase of Cardano’s development and focused on decentralization. During this phase, the team worked on implementing the Ouroboros consensus algorithm, which allows for decentralized and secure transaction validation. The Shelley phase also introduced staking, allowing ADA holders to participate in the network and earn rewards for securing the blockchain. The Shelley phase ended in July 2020, marking the transition to a fully decentralized network.

Goguen – Launched in 2021

The Goguen phase focused on smart contracts and decentralized applications (dApps) via the Alonzo hardfork upgrade. During this phase, the team worked on implementing the Plutus programming language, which allowed for the creation of complex smart contracts. The Goguen phase also introduced the Cardano Improvement Proposal (CIP) process, allowing for community-driven development.

Basho – Currently live (launched in 2022)

The Basho phase is the fourth phase of Cardano’s development and focuses on scalability. This phase includes setting up custom sidechains — a secondary scaling solution. This feature allows for increased throughput and scalability.

Voltaire – TBD

The Voltaire phase is the final phase of Cardano’s development and focuses on governance and sustainability. During this phase, the team will work on implementing a treasury system, allowing for the funding of community-driven projects. A definitive date for the Voltaire phase has yet to be announced. The activation of Cardano Improvement Proposal (CIP) 1694 will mark the beginning of the Voltaire phase. Community-run workshops for this CIP are expected to take place over the Summer months of 2023.

Cardano price

Cardano (ADA) is one of the top cryptocurrencies by market capitalization. Hoskinson and the broader Cardano team launched ADA in 2017 at an initial price of $0.02. Cardano didn’t see much activity in the beginning, but gradually its native asset gained momentum and reached its peak value of $3.10. Despite this volatility, the platform has managed to build a loyal community of developers and users who believe in its potential.

The price history of Cardano reflects the unpredictable price volatility of digital assets and the larger crypto market. Its future value will depend on a variety of factors.

The average trading price of ADA has varied, making price predictions challenging. While some analysts forecast an increase in Cardano’s price, others predict that it may remain stable or even decrease in the future. As with any cryptocurrency, the price of Cardano is subject to market trends and a variety of factors can affect it.