Cardano Explained – What is Cardano and How Does it Work?

By Aleksandra Wilson
2 min read July 30, 2021

What is Cardano (ADA)?

Since its release in 2015, Cardano has been a platform based on a specially sketched proof-of-stake blockchain protocol for consensus called Ouroboros. This permits ADA, its token, to be received and sent securely and simply. All the time while making sure the smart contracts on the blockchain of Cardano are safe.

About the founders

With his background in mathematics and experience with cryptocurrencies since 2011, Charles Hoskinson is the founder of Cardano. His first involvement in the industry, professionally speaking, didn’t happen until 2013. Then he created a very successful lecture about Bitcoin that was attended by thousands of students. He also participated as one of the co-founders of the network for Ethereum. 

Cardano Decentralized Blockchain

What makes it different from the others?

When comparing other decentralized blockchain platforms with similar aspirations and goals, such as creating new tools and protocols, Hoskinson understood the need for a different type of blockchain. It should be secure, scalable, durable and stable. This significantly improves the chances of foreseeing a potential pitfall because it can dispute daring ideas before being validated. In 2020 it had an upgrade that focused on making its blockchain even more decentralized by 50-100 times more than others. This would allow many other assets to be available on its network.

Circulation

At the time of writing this article, there was a circulation of a bit more than 31 billion ADA. In total, there’s a maximum supply of 45 billion. When the network was launched, 2.5 billion ADA were assigned to IOHK, and 2.1 billion to Emurgo, the company in charge of the Cardano protocol. Additionally, 648 million ADA were granted to the Cardano Foundation. Its goal is to promote the platform and grow volumes of adoption. 

Cardano Decentralized Blockchain

Security

The platform is secured through Ouroboros, which is a proof-of-stake protocol. It claims to be more energy efficient than others like Bitcoin, requiring about four times less energy, due to the fact that Ouroboros main goal is to obtain the kind of growth that is ethical and sustainable in the long run. It’s been described as a distinctive merge between technology and mathematically verifiable processes, a mechanism in which participants are rewarded for getting involved.

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