Cardano (blockchain platform): Difference between revisions
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It is a [https://www.britannica.com/place/Switzerland Swiss]-based independent non-profit organization promoting [https://coinmarketcap.com/currencies/cardano/ Cardano] adoption, focusing on operational resilience, education, and industry engagement, and is led by CEO [https://cardanofoundation.org/about Frederik Gregaard]. | It is a [https://www.britannica.com/place/Switzerland Swiss]-based independent non-profit organization promoting [https://coinmarketcap.com/currencies/cardano/ Cardano] adoption, focusing on operational resilience, education, and industry engagement, and is led by CEO [https://cardanofoundation.org/about Frederik Gregaard]. | ||
== History == | == History == | ||
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Cardano describes itself as a “third-generation” blockchain, building on Bitcoin and [https://coinmarketcap.com/currencies/ethereum/ Ethereum]. It is named after Renaissance mathematician Gerolamo Cardano, while its native cryptocurrency, ADA, honors 19th-century mathematician Ada Lovelace. | Cardano describes itself as a “third-generation” blockchain, building on Bitcoin and [https://coinmarketcap.com/currencies/ethereum/ Ethereum]. It is named after Renaissance mathematician Gerolamo Cardano, while its native cryptocurrency, ADA, honors 19th-century mathematician Ada Lovelace. | ||
== Design == | == Design == | ||
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* IOHK (Input Output Hong Kong): Conducts global research and development for Cardano’s technology. | * IOHK (Input Output Hong Kong): Conducts global research and development for Cardano’s technology. | ||
* [https://www.emurgo.io/ Emurgo]: Develops and supports commercial solutions based on the Cardano platform. | * [https://www.emurgo.io/ Emurgo]: Develops and supports commercial solutions based on the Cardano platform. | ||
=== Technical design === | === Technical design === | ||
Revision as of 05:26, 27 January 2026
| 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 |
| 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 |
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.
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.
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.
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. 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.
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.
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. [1]
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.
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.
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. [2]
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.
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.
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. 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.
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.
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. Another notable feature is that, as of the present, the native cryptocurrency, Ada (ADA), can only be stored in Cardano’s official digital wallet, Daedalus. 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.
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.
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.
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.
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.
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.
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. 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.
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.
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.
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.
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.
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. 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.
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.
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.
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. 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. In 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.
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.
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.