Cardano is a blockchain that stands out due to its unique, research-driven approach and emphasis on scalability, security, and sustainability. It is built on a peer-reviewed foundation, with academic researchers and scientists contributing to its development. As opposed to other blockchains, Cardano uses the Ouroboros Proof of Stake (PoS) consensus algorithm, which is energy-efficient and designed to be highly secure and scalable.
Cardano separates the blockchain into two layers: the Cardano Settlement Layer (CSL) for transferring value and the Cardano Computation Layer (CCL) for smart contracts and decentralized applications. This separation enhances flexibility, allowing for upgrades and modifications without disrupting the entire network.
The network also focuses on governance through a system called Project Catalyst. This allows users to propose and vote on changes to the platform. This decentralized approach to decision-making aims to ensure long-term sustainability and community involvement in Cardano’s evolution.
ADA is the native cryptocurrency of the Cardano blockchain platform. It is used to power the network by enabling several functions, such as staking, transaction validation, and governance. ADA holders can participate in the PoS consensus mechanism, where they can stake their tokens in order to help secure the network and earn rewards.