What is Cardano (ADA): Complete Guide for Beginners and Investors
Cardano is a third-generation blockchain platform designed to be scalable, sustainable, and interoperable. Founded in 2017 by technology firm Input Output Hong Kong (IOHK) led by Charles Hoskinson, Cardano aims to create a more balanced and sustainable ecosystem for cryptocurrencies.
Cardano was launched in 2017 by Charles Hoskinson, co-founder of Ethereum, through a methodical and research-driven approach. Cardano's development is divided into five phases, each focused on particular functionality: Byron (foundation), Shelley (decentralization), Goguen (smart contracts), Basho (scaling), and Voltaire (governance). The project has gained significant traction, becoming one of the largest blockchain projects by market capitalization.
TECHNOLOGY
Cardano uses a unique proof-of-stake consensus algorithm called Ouroboros, which aims to be an energy-efficient alternative to proof-of-work. Cardano separates the ledger into the Cardano Settlement Layer (CSL) for ADA transactions and the Cardano Computation Layer (CCL) for smart contracts, enhancing flexibility and security.
USE CASES
Cardano is used for a variety of applications, including developing decentralized applications (dApps) and deploying smart contracts. It is also targeting sectors like supply chain, agriculture, and finance, with applications such as: Transparent supply chain tracking; Secure financial transactions and digital identity solutions; Support for smart contracts in various industries.
FORECAST
Industry experts are optimistic about Cardano's future, given its rigorous academic foundation and ongoing development. As Cardano continues to integrate smart contracts and expand its capabilities, demand for ADA and its platform is expected to grow, although it remains subject to market dynamics and regulatory changes.
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