About Cardano

In this Blog, I would like to talk about my favorite blockchain: Cardano.

Cardano is a blockchain platform that seeks to provide a more secure and scalable infrastructure for smart contracts and decentralized applications development. 

Here are some fun facts about Cardano:

1. Proof of Stake (PoS) Consensus Mechanism: Cardano uses a Proof of Stake algorithm called Ouroboros as its consensus mechanism. PoS systems are different from Proof of Work (PoW) systems like Bitcoin in that validators who participate in the network and have their own stake are in charge of validating transactions and creating new blocks. This method is cheaper in terms of energy as compared to PoW.

2. Layered Architecture: Cardano is a layered architecture built on which are sitting two layers: the Cardano Settlement Layer (CSL) and the Cardano Computation Layer (CCL). The CSL processes transactions and handles exchange of ADA (Cardano's native cryptocurrency), which is aimed at smart contracts and decentralized applications development through CCL.

3. Native Cryptocurrency - ADA: ADA is the in-house coin of the Cardano platform. Such a currency can be used for numerous purposes within the environment, including transactions, staking as well as being used as a means of exchange. ADA is found on multiple different crypto exchanges.

4. Scientific Approach: Cardano is a project of peer-reviewed academic research and have a formal methods philosophy. Through this manner, the sustainability and the scalability of the system are assured with the help of academic rigor and mathematical principles.

5. Decentralized Governance: Cardano has a decentralized governance system that harnesses the power of ADA holders to partake in the decision-making process which is directed towards protocol upgrades and enhancements. This mechanism, called Voltaire, allows participants to submit and vote on ideas by using their ADA tokens.

6. Interoperability: The target of Cardano is to increase the interoperability between blockchain platforms as well as traditional systems. For example, these efforts incorporate the ability to communicate across chains and also integrate with the existing monetary and identity systems.

7. Partnerships and Development: Cardano runs on the technology of Input Output Hong Kong (IOHK), a company that was founded by Charles Hoskinson who is one of the co-founders of Ethereum. IOHK aims at multiple partnerships with the educational institutions as well as the industrial leaders in order to progress the Cardano network.

8. Sustainability: Cardano has a sustainable growth strategy that targets for the creation of a self -sufficient ecosystem. It also contains methods of financing and maintenance such as transaction fees and treasury reserves.

In a nutshell, Cardano seeks to overcome some of the issues like scalability, security and sustainability that the current blockchain platforms have, by combining rigorous research, interoperability and decentralization.

Although currently Cardano is not yet as big as Solana, with the backing of its founder, it can be one of the biggest blockchain in the future.