Cardano (blockchain platform): Difference between revisions

Cardano
Denominations
Symbol	ADA, ₳
Code	cardano-node
Subunits	1⁄1,000,000 Lovelace
Development
Original author(s)	Charles Hoskinson; Jeremy Wood
White paper	Cardano whitepaper
Initial release	27 September 2017[1]
Latest release	9.1.0 / 24 July 2024[2]
Code repository	cardanoupdates.com
Development status	Active
Written in	Haskell
Operating system	Cross-platform
Developer(s)	Cardano Foundation; IOHK; EMURGO
Source model	Free and open-source software
License	Apache License
Ledger
Timestamping scheme	Proof of stake
Block time	20 seconds
Block explorer	Adatools.io; Pooltool.io; Cardanoscan.io
Circulating supply	36.365 billion ₳ (as of Nov. 2023)
Supply limit	45 billion ₳[3]
Valuation
Exchange rate	Floating
Demographics
Official users	~3,264 stake pools globally (as of Nov. 2023)[4]
Website	cardano.org
Uses	Distributed computing

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Latest revision as of 07:50, 27 January 2026

Cardano is a decentralized blockchain platform founded in 2015 and launched in 2017. Using proof-of-stake, it offers energy efficiency, scalability, and a development environment for decentralized applications.¹

It is a Swiss-based independent non-profit organization promoting Cardano adoption, focusing on operational resilience, education, and industry engagement, and is led by CEO Frederik Gregaard.²

History

Cardano was developed by Ethereum co-founder Charles Hoskinson in 2015 and officially launched in 2017. Marketed as a third-generation blockchain, it is supported by the technology company Input Output Hong Kong (IOHK) and promoted by the Cardano Foundation. The platform aims to provide a more secure and scalable infrastructure for decentralized applications and smart contracts, distinguishing itself from earlier blockchains through a research-driven approach and a layered architecture.

After leaving Ethereum in 2014, Hoskinson, along with Jeremy Wood, began outlining plans for Cardano. Hoskinson had departed Ethereum following a disagreement with co-founder Vitalik Buterin over the project’s direction, with Hoskinson advocating for venture capital funding and a commercial model, while Buterin preferred a nonprofit approach. Subsequently, Hoskinson and Wood co-founded IOHK, which became the primary organization responsible for developing and maintaining the Cardano blockchain, focusing on solutions for corporations, governments, and educational institutions.³

In 2021, the University of Edinburgh partnered with IOHK to create a blockchain research lab led by Aggelos Kiayias, advancing distributed ledger research and fostering collaboration

between academia and industry.⁴ The lab included six postdoctoral and professorial positions and created up to 35 jobs overall. It was led by Aggelos Kiayias, the developer of the Ouroboros protocol.⁵

Cardano achieved a record market capitalization of US$77 billion in 2021, ranking fourth among blockchain platforms at the time. As of December 2023, its market value stands at US$10.7 billion.⁶

According to “Cardano (ADA) and Bitcoin Ranked Among Top 30 in MBLM’s Brand Intimacy 2022 Study” (MBLM, February 24, 2022), Cardano and Bitcoin ranked 26th and 30th, respectively, among over 600 global brands, reflecting strong emotional connections with consumers and increasing mainstream recognition of cryptocurrency.⁷

Cardano describes itself as a “third-generation” blockchain, building on Bitcoin and Ethereum. It is named after Renaissance mathematician Gerolamo Cardano, while its native cryptocurrency, ADA, honors 19th-century mathematician Ada Lovelace.⁸

¹ Investopedia, “Cardano (ADA): What It Is and How It Differs From Bitcoin ”, Achieved, Retrieved June 2025

² Cardano Foundation, “Bridging Cardano and the World”, Achieved

³ Binance Square, “The Blog”, Achieved, Retrieved February 2024

Design

Governance

Cardano is governed by three independent entities, each playing a unique role in its development, adoption, and commercialization.

Cardano Foundation (Switzerland): A non-profit promoting adoption and ecosystem growth.
IOHK (Input Output Hong Kong): Conducts global research and development for Cardano’s technology.
Emurgo: Develops and supports commercial solutions based on the Cardano platform.⁹

Technical design

Cardano (ADA) is a proof-of-stake blockchain with a research-first approach. Unlike typical blockchains, it replaces a whitepaper with peer-reviewed design principles. Written in Haskell, it uses the Ouroboros protocol for secure, high-speed transactions, combining innovation with scientific rigor. ¹⁰

It is an open-source blockchain platform allowing developers to deploy smart contracts, bridging real-world data with blockchain applications and expanding the potential for decentralized solutions.

It aims to address limitations in the cryptocurrency space, claiming to overcome Bitcoin’s speed and flexibility issues and Ethereum’s safety and scalability challenges. The platform relies on rigorous academic research and testing and operates on an eco-friendly Proof-of-Stake network to identify and resolve potential issues before implementation.¹¹

Cardano uses an Extended UTXO (EUTXO) accounting model, combining Bitcoin’s UTXO structure with Ethereum’s smart contract functionality. This approach supports multi-assets, improves scalability, enables precise transaction tracking, and allows developers to integrate real-world data into the blockchain.¹²

Cardano employs the Ouroboros family of protocols as its proof-of-stake consensus mechanism. The protocols use a verifiable random function (VRF) to select validators,

ensuring randomness while allowing straightforward verification of participants.¹³ This contrasts with Bitcoin and Ethereum, which traditionally used proof-of-work protocols, although Ethereum transitioned to proof-of-stake in 2022. Proof-of-stake blockchains consume significantly less energy compared to proof-of-work blockchains.¹⁴

In February 2021, Charles Hoskinson estimated that the Cardano network consumed approximately 6 GWh annually, representing less than 0.01% of the 110.53 TWh consumed by the Bitcoin network, according to calculations by the University of Cambridge.¹⁵

Within the Cardano platform, Ada operates on the settlement layer, which is responsible for recording and maintaining transactions. The computation layer, on the other hand, is designed to support smart contracts and decentralized applications, functioning in a manner similar to Ethereum.¹⁶Another notable feature is that, as of the present, the native cryptocurrency, Ada (ADA), can only be stored in Cardano’s official digital wallet, Daedalus.¹⁷ It is an open-source, full-node cryptocurrency wallet for Cardano’s Ada (ADA), providing maximum security, independent transaction validation, hierarchical deterministic wallet management, cross-platform support, and customizable user interface themes.¹⁸

Cardano has been developed in phases named after notable figures in poetry and computer science: Byron, Shelley, Goguen, Basho, and Voltaire. Each phase represents a major step in the platform’s evolution, focusing on foundational infrastructure, decentralization, smart contracts, scalability, and governance.

The final phase, Voltaire, completed in January 2025, established a self-sustaining system with on-chain voting, proposals, and treasury management. As of June 2025, the blockchain’s Ongoing development and future improvements, including scalability, new protocols, and API services, are guided by the Cardano community.¹⁹

As part of Cardano's Voltaire phase, CIP-1694 was implemented through the Chang upgrade and the subsequent Plomin hard fork in 2024, establishing on-chain governance. This transition allowed ADA token holders to create, vote on, and execute proposals via a decentralized decision-making process, representing IOHK’s formal transfer of network development control to the community.²⁰

Cardano’s Ouroboros proof-of-stake protocol enables ADA holders to delegate tokens to staking pools or operate pools themselves, securing the network, earning rewards, and participating in governance, while reducing energy consumption compared with proof-of-work systems.²¹

⁴ Coin Desk, “Edinburgh University Partners with IOHK on Blockchain Research Hub”, Achieved, Retrieved September 2011

⁵ Fandom, “Cardano (cryptocurrency platform)”, Achieved

⁶Fintech Magazine, “Top 10 cryptocurrencies in 2023 by market capitalisation”, Achieved, Retrieved December 2023

⁷ MBLM, “Cardano (ADA) and Bitcoin Ranked Among Top 30 in MBLM’s Brand Intimacy 2022 Study”, Achieved, Retrieved April 2022

⁸ WazirX, “Cardano ADA”, Achieved

⁹ Brightnode, “The history of Cardano”, Achieved, Retrieved September 2021

¹⁰ CoinDCX, “What is Cardano (ADA) | Whitepaper Summary”, Achieved, Retrieved June 2022

¹¹ Oobit, “Cardano vs Ethereum: How Are They Different?”, Achieved, Retrieved April 2021

¹² IOG, “Cardano’s Extended UTXO accounting model – built to support multi-assets and smart contracts”, Achieved, Retrieved March 2021

¹³ Cardano Foundation, “An Introduction to Proof of Stake Blockchain Systems”, Achieved, Retrieved March 2025

¹⁴ Bitwave, “Is Proof-of-Stake REALLY More Energy-Efficient Than Proof-of-Work?”, Achieved

¹⁵ CNBC, “Sustainable Energy Bitcoin’s wild ride renews worries about its massive carbon footprint”, Achieved, Retrieved February 2021

¹⁶ Mashable, “Cardano: a rising cryptocurrency that wants to change the world”, Achieved, Retrieved February 2018

¹⁷ European Parliament, “Cryptocurrencies and blockchain”, Achieved, Retrieved July 2018

¹⁸ Daedalus Wallet, “Welcome to Daedalus Wallet”, Achieved

Cardano Foundation

Frederik Gregaar has served as Chief Executive Officer of the Cardano Foundation since 2021. He has a background in banking, wealth management, and asset management, and is a leader in fintech and blockchain.²²

Applications

In 2026, Cardano’s Ouroboros Leios protocol is scheduled to increase transaction throughput to 10,000 transactions per second through parallel processing. The Hydra layer-2 solution further reduces congestion, supporting high-volume applications such as decentralized finance and real-world asset tokenization. Also in 2026, the Cardano Foundation launched a $30 million liquidity initiative, converting ADA holdings into active liquidity for stablecoin projects, custody providers, and cross-chain bridges. This program aims to enhance institutional adoption and create a sustainable ecosystem.

In 2025–2026, the U.S. ADA ETF filing was prioritized to provide regulated exposure to institutional investors. Its approval is expected to unlock significant capital inflows, leveraging Cardano’s academic-first approach and structured governance for mainstream adoption.

In 2026, Cardano partnered with MembersCap and RedSwan CRE to tokenize commercial real estate assets exceeding $50 million. This project aligns with global trends, expanding blockchain use beyond finance and contributing to the projected $16 trillion tokenization market.

By 2026, Cardano deployed blockchain-based decentralized identity systems to provide tamper-proof credentials for education and government sectors. These solutions enhance data security, streamline verification, and illustrate enterprise-grade applicability of the Cardano platform.

In 2025, the Cardano Foundation delegated 220 million ADA to DReps, enabling community-driven governance. This decentralization strengthened network resilience, transparency, and trust, facilitating institutional confidence and long-term stakeholder participation.

In 2023, the Ghanaian startup Mazzuma received funding from Adaverse, a Cardano ecosystem accelerator. The company’s project, MazzumaGPT, aims to integrate artificial intelligence into its contract creation platform.²³

In 2022, World Mobile Token (WMT), a project built on the Cardano blockchain, provided remote mobile network access in Africa and operated approximately 150 nodes in East Africa. Investor Mark Cuban expressed skepticism regarding the project and Cardano adoption.²⁴

In September 2022, Cardano was cited by Quartz for its potential to provide digital IDs in Zanzibar, Ethiopia, and Burundi. Across Africa, rising demand for blockchain developers is driving education, startups, and investment in decentralized solutions.²⁵

In September 2021, DISH Network and Input Output Global (IOG) formed a strategic collaboration to explore blockchain applications on the Cardano network, aiming to enhance services for Boost, DISH, and SLING customers through distributed ledger technologies.²⁶

In October 2021, Cardano founder Charles Hoskinson partnered with EDM artist Paul Oakenfold to launch a tokenized album, Zombie Lobster, on the Cardano blockchain, with all tracks, cover art, and remixes issued as non-fungible tokens.²⁷

In April 2021, the Ethiopian government partnered with IOHK to use the Cardano blockchain to benefit five million students, aiming to provide scalable, blockchain-based education solutions and promote economic, social, and financial inclusion.²⁸

In October 2019, New Balance partnered with NBA player Kawhi Leonard and IOHK to pilot the Cardano blockchain for its OMN1S sneaker, enabling fans to verify authenticity and record ownership through a blockchain-based digital registration system.²⁹

In June 2019, IOHK partnered with the Georgian government and two universities to explore Cardano and Atala blockchain applications for education, enabling secure verification of academic credentials and supporting broader initiatives in fintech, supply chains, and smart contracts.³⁰

In 2018, IOHK signed a memorandum of understanding with the Ethiopian government to explore the use of the Cardano blockchain in its coffee supply chain and investigate additional applications of the technology within the country.³¹

Decentralized Finance

In November 2023, Cardano announced progress on partner chains, including Midnight, a data-protection-focused sidechain using zero-knowledge cryptography. Midnight aims to bridge decentralized and traditional finance, support selective data disclosure, and introduced a devnet that onboarded over 600 development teams.³²

Non-Fungible Tokens (NFTs)

In April 2022, rapper Snoop Dogg collaborated with Clay Nation to launch Baked Nation, an NFT collection on the Cardano blockchain, consisting of 10,000 digital representations of handmade, Snoop Dogg–inspired clay figurines.³³

¹⁹ Investopedia, “Cardano (ADA): What It Is and How It Differs From Bitcoin”, Achieved, Retrieved June 2025

²⁰ Cardano Foundation, “A First Step Towards On-Chain Decentralized Governance”, Achieved, Retrieved November 2022

²¹ Coin Shares, “Cardano (ADA) Guide”, Achieved, Retrieved February 2024

²² Building Bridges, “Profile: Frederik Gregaard ”, Achieved

²³ Techloy, “Adaverse backs Ghana Web3 startup Mazzuma to unveil AI-based smart contract generator”, Achieved, Retrieved June 2023

²⁴ City AM Limited, “Mark Cuban goes head-to-head with World Mobile CEO over Cardano”, Achieved, Retrieved August 2022

²⁵ Quartz, “Demand for blockchain developers is rising in Africa" Achieved, Retrieved September 2022

²⁶ Dish Room, “DISH and IOG Form Strategic Collaboration to Leverage Blockchain Technology in Wireless”, Achieved, Retrieved September 2021

²⁷ Proactive, “Cardano meets music as DJ Paul Oakenfold to launch tokenised album”, Achieved, Retrieved October 2021

²⁸ Crypto Slate, “Ethiopian government to use Cardano blockchain to benefit 5 million students”, Achieved, Retrieved April 2021

29 Yahoo Finance, “Blockchain for sneakers: New Balance pairs with basketball star for pilot”, Achieved, Retrieved October 2019

30 IOG, “IOHK announces partnership with Georgian government and universities”, Achieved, Retrieved June 2019

³¹ Business Week, “Ethiopian government-Cardano Technology team up on blockchain”, Achieved, Retrieved June 2018

³² Messari, “State of Cardano Q4 2023”, Achieved, Retrieved February 2024

³³ CNBC, “5 crypto and NFT projects that Snoop Dogg has been involved with”, Achieved, Retrieved March 2023

Legal Status and Regulation

In 2023, the U.S. Securities and Exchange Commission (SEC) filed a complaint against the cryptocurrency exchange Kraken, alleging the offering of unregistered securities through its staking services for several proof-of-stake cryptocurrencies, including Cardano. Without admitting wrongdoing, Kraken agreed to pay a $30 million settlement and discontinue its staking program.³⁴

In June 2023, the U.S. SEC sued Binance and CEO Changpeng Zhao for operating an unregistered exchange. The lawsuit affected multiple cryptocurrencies traded on the platform, including Cardano, amid broader regulatory scrutiny. ³⁵In the same year, Input Output Global (IOG) rejected SEC claims involving Cardano and ADA, stating the filings contained inaccuracies, reaffirming ADA is not a security, and advocating collaborative, innovation-friendly blockchain regulation.³⁶

On 19 June 2023, Cardano’s ADA price declined following regulatory uncertainty linked to U.S. Securities and Exchange Commission actions. Analysts noted similarities to XRP’s price behavior during its SEC lawsuit, warning ADA could fall below $0.22 if legal pressures persisted.³⁷

On 13 November 2024, Robinhood added Solana, Pepe, Cardano (ADA), and XRP to its U.S. trading platform, expanding its cryptocurrency offerings amid expectations of a more favorable regulatory environment following Donald Trump’s presidential election victory.

³⁴ US SEC, “Complaint and Demand for Jury Trial”, Achieved, Retrieved September 2023

³⁵ Al Jazeera, “US SEC sues world’s largest crypto exchange Binance and founder”, Achieved, Retrieved June 2023

³⁶ IOG, “IOG response to the recent SEC filings”, Achieved, Retrieved June 2023

³⁷ Investing, Com, “ADA’s Price Development May Depend on the SEC Vs. Ripple Outcome”, Achieved, Retrieved June 2023

³⁸ Coin Desk, “Robinhood Adds SOL, PEPE, ADA, XRP Following Trump Victory”, Achieved, Retrieved November 2024

@@ Line 1: / Line 1: @@
+{{SEO
+ |title=Cardano – Proof-of-Stake Blockchain Platform
+ |description=Cardano is a blockchain platform based on proof-of-stake, designed for scalability, sustainability, and smart contracts.
+ |keywords=cardano, ada, blockchain platform, proof of stake
+}}
 {| class="infobox" style="width:260px; font-size:90%; line-height:1.35; background:#f9f9f9; border:1px solid #aaa; float:right; margin:0 0 1em 1em;"
 |-
@@ Line 12: / Line 17: @@
 |-
 ! Code
-| cardano-node
+| [https://github.com/input-output-hk/cardano-node cardano-node]
 |-
 ! Subunits
@@ Line 20: / Line 25: @@
 |-
 ! Original author(s)
-| Charles Hoskinson<br>Jeremy Wood
+| [[wikipedia:Charles_Hoskinson|Charles Hoskinson]]<br>Jeremy Wood
 |-
-! White paper
+! [[wikipedia:White_paper|White paper]]
-| ''Cardano whitepaper''
+| ''[https://whitepaper.io/document/581/cardano-whitepaper Cardano whitepaper]''
 |-
 ! Initial release
-| 27 September 2017<sup>[1]</sup>
+| 27 September 2017<sup>[</sup>[[wikipedia:Cardano_(blockchain_platform)#cite_note-1|1]]<sup>]</sup>
 |-
-! Latest release
+! [[wikipedia:Software_release_life_cycle|Latest release]]
-| 9.1.0 / 24 July 2024<sup>[2]</sup>
+| 9.1.0 / 24 July 2024<sup>[<nowiki/>[[wikipedia:Cardano_(blockchain_platform)#cite_note-2|2]]]</sup>
 |-
-! Code repository
+! [[wikipedia:Repository_(version_control)|Code repository]]
 | [https://cardanoupdates.com/ cardanoupdates.com]
 |-
@@ Line 37: / Line 42: @@
 | Active
 |-
-! Written in
+! [[wikipedia:Programming_language|Written in]]
-| Haskell
+| [[wikipedia:Haskell|Haskell]]
 |-
-! Operating system
+! [[wikipedia:Operating_system|Operating system]]
-| Cross-platform
+| [[wikipedia:Cross-platform_software|Cross-platform]]
 |-
-! Developer(s)
+! [[wikipedia:Software_developer|Developer(s)]]
 | Cardano Foundation<br>IOHK<br>EMURGO
 |-
 ! Source model
-| Free and open-source software
+| [[wikipedia:Free_and_open-source_software|Free and open-source software]]
 |-
-! License
+! [[wikipedia:Software_license|License]]
-| Apache License
+| [[wikipedia:Apache_License|Apache License]]
 |-
 ! colspan="2" style="background:#eeeeee; text-align:center; font-weight:bold;" | Ledger
 |-
-! Timestamping scheme
+! [[wikipedia:Trusted_timestamping|Timestamping scheme]]
-| Proof of stake
+| [[wikipedia:Proof_of_stake|Proof of stake]]
 |-
 ! Block time
@@ Line 69: / Line 74: @@
 |-
 ! Supply limit
-| 45 billion ₳<sup>[3]</sup>
+| 45 billion ₳<sup>[<nowiki/>[[wikipedia:Cardano_(blockchain_platform)#cite_note-CardanoEU-3|3]]]</sup>
 |-
 ! colspan="2" style="background:#eeeeee; text-align:center; font-weight:bold;" | Valuation
 |-
-! Exchange rate
+! [[wikipedia:Exchange_rate|Exchange rate]]
 | Floating
 |-
@@ Line 79: / Line 84: @@
 |-
 ! Official users
-| ~3,264 stake pools globally <small>(as of Nov. 2023)</small><sup>[4]</sup>
+| ~3,264 stake pools globally <small>(as of Nov. 2023)</small><sup>[</sup>[[wikipedia:Cardano_(blockchain_platform)#cite_note-4|4]]<sup>]</sup>
 |-
 ! Website
@@ Line 85: / Line 90: @@
 |-
 ! Uses
-| Distributed computing
+| [[wikipedia:Distributed_computing|Distributed computing]]
 |}