WHAT IS CARDANO?

Peer-reviewed and decentralized

Cardano is an open-source blockchain platform powered by the ADA cryptocurrency token, which is widely used to host decentralized systems and applications.

Cardano was founded in 2015 by one of the founding members of Ethereum, Charles Hoskinson.

Photo by Michael Förtsch on Unsplash

ABOUT CARDANO

Two Layers of the Cardano Blockchain

Cardano is an open-source blockchain platform powered by the ADA cryptocurrency token, which is widely used to host decentralized systems and applications. Cardano was founded in 2015 by one of the founding members of Ethereum, Charles Hoskinson.

Cardano Settlement Layer (CSL)

The designers of Cardano set out to create a system that can distinguish between a transaction's value and its computational data.

The movement of value (or currency) between the sender and the receiver is controlled by the Cardano Settlement Layer. In other words, all control layers and systems are routed through the settlement layer.

The CSL uses two scripting languages – Plutus and Marlowe – to transfer the value and improve support for the overlay network protocol.

Cardano Computation Layer (CCL)

The Rootstock (RSK blockchain) platform for smart contracts in the Bitcoin (BTC) ecosystem is replicated by Cardano with the aid of the Cardano Computation Layer. The capacity of the CCL to assist in scaling specialized protocols over time is the justification for its use. As technology develops, this entails adding hardware security modules (HSM) to the current stack of protocols.

The Cardano blockchain's two levels give the ecosystem the flexibility to proactively adopt improvements to promote quicker and more secure transactions while also removing any user metadata that turns out to be pointless to the procedure.

ADA – Cardano’s Cryptocurrency Token

The internal coin of the Cardano blockchain is called ADA, and it is located on the Cardano Settlement Layer. The ADA cryptocurrency has a 45 billion token maximum supply that will be minted and distributed over time. A deflationary characteristic of ADA is guaranteed by the hard cap on the overall token production.

Like other well-known cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), ADA may be saved in digital wallets and exchanged for fiat currencies like the US dollar. Third-party wallet services can store and transfer ADA in addition to Cardano's native wallet options like Daedalus, Yoroi and Eternl. ADA can also be safely kept in both hot and cold wallets.

TIMELINE OF CARDANO

Byron – Foundation

The two years of work between 2015 and 2017 that saw the release of the initial iteration of the Cardano blockchain and the introduction of the ADA cryptocurrency are known as the Byron period. Ada Lovelace, an English mathematician recognized for her work as one of the earliest computer programmers, is the inspiration behind the internal ADA token.

IOHK and Emurgo introduced official ADA-supported wallets called Daedalus desktop wallet and Yoroi light wallet, respectively, along with the introduction of the Cardano blockchain and ADA token.

The Byron era saw the creation of a community and the involvement of individuals in the development of the future blockchain, which led to the first significant technological improvements.

Shelley – Decentralization

The existing Cardano ecosystem's expansion and improvement are the focus of the Shelley period. Throughout the Byron era, the network was federated, but as the Shelley era goes on, a growing number of nodes will be run by the Cardano community.

In order to achieve improved security and robustness, one of the key objectives of this phase is to decentralize the node network by integrating additional network participants. A reward system and staking guidelines are also introduced at this level to entice users to interact with the Cardano ecosystem.

Goguen – Smart Contracts

The Cardano blockchain's Goguen period marks the arrival of smart contracts and decentralized apps (DApps). The goal of this stage of development, which parallels the Shelley era, is to create Plutus, a platform for developing and executing smart contracts.

After being put into use, Plutus will allow users to build and run usable smart contracts on the Cardano network without any prior technological experience. Marlowe, a Plutus-based domain-specific language (DSL) for financial contracts, is also introduced around this time period. The Goguen period will also have support for a multi-currency ledger, allowing users to design new fungible and non-fungible tokens that are natively supported.

Basho – Scaling

The Basho era is focused on enhancing the Cardano network's fundamental performance in terms of operability, scalability, and optimization. Implementations of sidechains in core developments have a huge potential to increase the network's functionality. Sidechains can be used as a sharding strategy to increase the capacity of the network by shifting work from the main chain to a sidechain. They can also be used to test new features without endangering the security of the primary blockchain.

Voltaire – Governance

The Voltaire period is the last phase of the Cardano roadmap, which is focused on creating a self-sustaining structure that is backed by network users. In this stage, voting and treasury systems will be introduced, enabling users to share suggestions for network improvements and finance the requested upgrades. Following the voting, a share of all transaction expenses will be gathered to provide money for fundraising efforts.

When this phase is finished, the Cardano network will be fully decentralized and operate without IOHK's oversight. This means that once a vote and a treasury mechanism are in place, Cardano will be fully decentralized and will no longer be run by IOHK. Instead, the community will be in charge of the future of Cardano, and with IOHK's secure, decentralized basis, they will have everything they need to grow and develop the network.