Cardano is a blockchain platform that operates on a proof-of-stake model. Its mission is to empower "changemakers, innovators, and visionaries" to drive beneficial transformations globally.
To delve deeper into this project, explore our comprehensive analysis of Cardano.
This open-source project seeks to "shift power from unaccountable structures to individuals at the fringes," fostering a more secure, transparent, and equitable society.
Established in 2017, Cardano is named after Gerolamo Cardano, a renowned 16th-century Italian thinker. Its native token, ADA, honors Ada Lovelace, the 19th-century mathematician celebrated as the first computer programmer. The ADA token is crafted so that holders can take an active role in the network's governance. Consequently, owners of this cryptocurrency can vote on proposed software amendments.
The creators of this multi-layered blockchain highlight existing intriguing applications of its technology, which is meant to support the development of decentralized applications and smart contracts with modularity.
In August 2021, Charles Hoskinson revealed the rollout of the Alonzo hard fork, resulting in a dramatic 116% increase in Cardano's value over the subsequent month. On September 12, 2021, the Alonzo hard fork officially enabled smart contract capabilities on Cardano's blockchain. In just 24 hours post-launch, more than 100 smart contracts were established.
Cardano's technology is utilized by agricultural firms to monitor produce from farm to table. Additionally, it allows for the secure storage of educational credentials and helps retailers combat counterfeit products.
Who Are the Founders of Cardano?
Cardano was founded by Charles Hoskinson, who also played a pivotal role in co-founding the Ethereum network. As CEO of IOHK, the company responsible for building Cardano's blockchain, Hoskinson shared that his first professional venture in this field began in 2013 with a Bitcoin course, attracting 80,000 students.
Beyond his tech entrepreneurship, Hoskinson is a mathematician. In 2020, his company contributed ADA worth $500,000 to the University of Wyoming's Blockchain Research and Development Lab.
What Makes Cardano Unique?
Cardano stands out as one of the largest blockchains that successfully employs a proof-of-stake consensus mechanism, which is more energy-efficient compared to the proof-of-work algorithm used by Bitcoin. Although Ethereum, a much larger player, is transitioning to PoS, this shift is happening incrementally.
The project prides itself on the thorough peer-reviewed research process every bit of technology undergoes, allowing bold ideas to be rigorously tested. This academic rigor, as stated by the Cardano team, contributes to the blockchain's resilience and stability, increasing the likelihood of identifying potential challenges ahead of time.
In 2020, Cardano's Shelley upgrade was aimed at making the blockchain "50 to 100 times more decentralized" than its peers. At the time, Hoskinson anticipated that this would enable hundreds of assets to operate on its network.
The Alonzo hard fork launch in September 2021 marked the end of the Shelley era and initiated the Goguen phase, which allows users to develop and deploy smart contracts, paving the way for native decentralized applications (DApps) on the blockchain. Ahead of this launch, Cardano's value crossed the $3 mark, reaching a peak of $3.101 on September 2, 2021.
What Is Cardano’s Vasil Hard Fork?
The Vasil hard fork, named after the late Bulgarian mathematician Vasil Dabov, a significant contributor to Cardano, is one of the eagerly awaited upgrades for the platform. It represents the third developmental epoch of Cardano and is set to introduce multiple enhancements to the Plutus smart contract programming language and the network's capacity.
Originally scheduled for June 2022, the event faced several delays.
Vasil is expected to introduce five essential mechanisms for boosting Cardano's scalability and usability: CIP-31, CIP-32, CIP-33, CIP-40, and diffusion pipelining.
CIP-31, known as "reference inputs," will allow developers to view the result of an output without spending it, optimizing transaction throughput and increasing concurrency.
CIP-32 aims to enable inline datums, allowing developers to attach datums directly to outputs rather than to datum hashes, thus simplifying communication of datum values between users.
CIP-33 proposes that reference scripts be attached to outputs, permitting them to fulfill validation requirements instead of the spending transaction. These scripts will streamline the validation process and reduce transaction sizes.
CIP-40 introduces a new type of transaction output called collateral outputs, designed to enhance the network's overall scalability.
Diffusion pipelining, Cardano’s consensus layer scaling solution, will facilitate greater DApp deployment by overlapping some processes a block undergoes as it travels through the chain, enabling concurrent transactions.
How Many Cardano (ADA) Coins Are There in Circulation?
The total supply of ADA is capped at 45 billion, with roughly 31 billion currently in circulation. Between September 2015 and January 2017, Cardano conducted five public sales of its tokens. The price for Cardano during its pre-launch was set at $0.0024, representing over a 1000x return at current values.
When the network went live, IOHK was allocated about 2.5 billion ADA. Meanwhile, Emurgo, a global blockchain technology company and a founding entity of Cardano, received 2.1 billion ADA. Additionally, 648 million ADA were assigned to the Cardano Foundation, a non-profit organization focused on promoting the platform and enhancing adoption.
Overall, approximately 16% of ADA's total supply went to the project's founders, with the remaining 84% distributed among investors.
How Is the Cardano Network Secured?
Cardano is secured through Ouroboros, a "sustainably environmentally friendly, verifiably secure" PoS protocol.
The project claims that Ouroboros surpasses the security assurances provided by a PoW consensus mechanism while consuming significantly less energy—boasting a fourfold efficiency over Bitcoin.
This protocol combines state-of-the-art technology with mathematically verified processes, incorporating elements of behavioral psychology and economic philosophy. The overarching goal of Ouroboros is to achieve growth that is both ethical and sustainable.
An incentive mechanism rewards network participants for their contributions.
What Is Cardano’s Alonzo Upgrade?
On September 12, Cardano launched the much-anticipated Alonzo upgrade. This upgrade expanded Cardano's blockchain functionalities to include a broad array of crypto applications, such as non-fungible tokens (NFTs) and smart contracts.
Founder Charles Hoskinson likened Alonzo's introduction of "programmability" to the leap from static web pages to dynamic platforms like Facebook and YouTube with the advent of JavaScript in web browsers.
Named after Alonzo Church, an American mathematician and a founding figure in computer science, the upgrade also enabled decentralized exchanges on Cardano.
With Alonzo, Cardano joins the ranks of Ethereum, the world’s predominant blockchain supporting various applications beyond its native Ether token. Smart contracts, for instance, are integral to the decentralized finance landscape, which Cardano now supports.
By February 2022, the number of Cardano wallets surpassed three million, soaring 1,200% from 190,000 in December 2020 to over 3,000,000. This growth paralleled a rise in smart contracts post-Alonzo Upgrade, with Cardano surpassing 1,000 smart contracts by January 27, 2022.
Further evidence of the ecosystem’s rapid expansion is developer activity: Cardano topped the list for most contributors on its Github, outpacing even more established blockchains like Solana, with an average of over 50 daily contributions to its repository.
Nonetheless, the network has faced challenges with the execution of its smart contracts, and users expressed concerns over the sluggish debut of its SundaeSwap decentralized exchange in January 2022.
Where Can You Buy Cardano (ADA)?
As one of the largest cryptocurrencies by market capitalization, acquiring Cardano should be straightforward on major exchanges such as Binance, Bittrex, eToro, and HitBTC.
If you're having trouble finding a trading pair that matches ADA with your local currency, consider exploring our guide on converting fiat into Bitcoin, which can open doors to purchasing various altcoins. Popular trading pairs for Cardano include ADA/USD, ADA/JPY, ADA/KRW, ADA/CNY, ADA/GBP, and ADA/AUD.
