Cardano (ADA) is a third-generation, decentralized proof-of-stake (PoS) blockchain platform designed to be a more efficient alternative to proof-of-work (PoW) networks. Scalability, interoperability, and sustainability on PoW networks like Ethereum are limited by the infrastructure burden of growing costs, energy use, and slow transaction times.
Yes, Cardano is a form of cryptocurrency. It can be purchased on most crypto exchanges. When evaluating the use of crytpo and the underlying technology, I like to first understand What does it do, and What is it used for? Like most crypto, ADA can be used to true peer-to-peer transactions where there is no use of a middleman (a credit card, a bank card, etc. all act as a middleman, and collect a fee for the service they provide).
Cardano is an ambitious project, and there are many potential uses for its technology across a variety of industries.
For a current, real-world example, we have Cardano’s partnership with the Ethiopian Ministry of Education. Cardano’s blockchain will store tamper-proof records for five million Ethiopian students. When those students pursue higher education and jobs, they’ll have their records and achievements available on the blockchain.
Here are other use cases for Cardano in different sectors:
- Health care: Cardano’s blockchain can authenticate pharmaceutical products to avoid the risk of buying counterfeit medications.
- Finance: Cardano can be used in developing countries as a record of people’s identities and to demonstrate their creditworthiness.
- Agriculture: Blockchain technology can provide reliable supply chain tracking for farmers, hauliers, and merchants.
Charles Hoskinson, the co-founder of the proof-of-work (PoW) blockchain Ethereum, understood the implications of these challenges to blockchain networks, and began developing Cardano and its primary cryptocurrency, ada, in 2015, launching the platform and the ada token in 2017
The Cardano platform runs on the Ouroboros consensus protocol. Ouroboros, created by Cardano in its foundation phase, is the first PoS protocol that not only was proved to be secure, but also was the first to be informed by scholarly academic research. Each development phase, or era, in the Cardano roadmap is anchored by the research-based framework, incorporating peer-reviewed insights with evidence-based methods to make progress toward and achieve the milestones related to the future directions of the use applications of both the blockchain network and the ada token.
As of the writing of this, 73% of the Cardano token supply is staked* (see my prior post on staking). The total circulating supply of ADA is only 33.26 billion coins, meaning that only less than 10 billion are not staked.
Ouroboros is the first peer-reviewed, verifiably secure blockchain protocol, and Cardano is the first blockchain to implement it. Ouroboros enables the Cardano network’s decentralization, and allows it to sustainably scale to global requirements without, crucially, compromising security.
The protocol is the culmination of tireless effort, building on foundational research, and is propelled by a vision for more secure and transparent global payment systems, and a means to redistribute, more fairly, power and control.
Remember, Cardano is a software platform ONLY and does not conduct any independent diligence on, or substantive review of, any blockchain asset, digital currency, cryptocurrency or associated funds. You are fully and solely responsible for evaluating your investments, for determining whether you will exchange blockchain assets based on your own judgement, and for all your decisions as to whether to exchange blockchain assets with Cardano. In many cases, blockchain assets you exchange on the basis of your research may not increase in value, and may decrease in value. Similarly, blockchain assets you exchange on the basis of your research may fall or rise in value after your exchange.
Past performance is not indicative of future results. Any investment in blockchain assets involves the risk of loss of part or all of your investment. The value of the blockchain assets you exchange is subject to market and other investment risks
If you would like to read more about Cardano, click this link.