What is Cardano?
What is Cardano-Ada
Cardano is a decentralized blockchain network that focuses on providing a trusted solution for dApps and smart contracts. It was created in 2015 by Charles Hoskinson, the co-founder of Ethereum, and has a number of unique features, such as its research-based approach to building the network and its three-tiered approach to improve scalability and efficiency. Cardano uses the ADA cryptocurrency to enable transactions on the network.
How the cardano works
Cardano works using a decentralized network of nodes running Cardano software. These nodes are responsible for maintaining the integrity and security of the network by validating and confirming transactions that take place on the network.
Cardano uses a consensus technology based on "proof of stake" (PoS) to decide which nodes will validate the next blocks of transactions. Instead of using computing power to solve difficult mathematical problems, as with proof of work (PoW), Cardano nodes are randomly chosen to validate blocks based on how much coin they hold. This process is known as "slot leader selection".
Cardano also has a three-tier architecture that allows it to handle different types of operations efficiently. The first layer, called the “Cardano Settlement Layer” (CSL), is used to manage financial transactions and enable the transfer of ADA currency. The second layer, called "Cardano Computation Layer" (CCL), is used to manage smart contracts and decentralized applications. It is built using the Haskell programming language. The third level, called "Cardano Control Layer", is under development and will allow integration with other networks and external systems.
Cardano focuses on providing a trusted solution for dApps and smart contracts through its research-based approach to building the network and using a PoS-based consensus system and its three-tier architecture.
Tokenomics for Cardano is based on the ADA cryptocurrency, which is used to enable transactions on the network. ADA is a "non-mineable" token, meaning that it cannot be mined by solving difficult mathematical problems, but is distributed through reward mechanisms for nodes that validate transactions in the network.
Cardano uses a proof-of-stake (PoS) consensus system, where nodes are randomly chosen to validate the next block of transactions based on how much ADA coin they hold. This process is known as "slot leader selection". Nodes that become "slot leaders" are rewarded with a certain amount of ADA for their services.
ADA is also distributed through reward mechanisms for developers who contribute to the Cardano project and for those who take leadership roles in the Cardano community.
Cardano also has a reward system for "stake pool operators". These are nodes that are responsible for collecting "stake" (proofs of ownership) from users who want to participate in the PoS consensus process, without having to run their own node. Stake pool operators are rewarded with a portion of the rewards obtained from validating blocks.
Cardano's Tokenomics focuses on rewarding participants who contribute to the smooth running of the network and who support the project with their means. This helps maintain the integrity and security of the network and encourages participation in the project.