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2. ADA
Overview

3. ADA – is named
Ada Lovelace a 19th-century mathematician who is recognized as
the first computer programmer
CARDANO
The platform is named after Italian mathematician Gerolamo Cardan
Charles Hoskinson is a mathematician and who is a co-founder of
the blockchain engineering company Input Output Global, Inc.
(formerly IOHK) and EMURGO is a global blockchain technology
company providing solutions for developers, startups, enterprises,
and governments.
Founder

5. Fast transactions – Cardano is created to
be highly scalable. At the moment, it provides
250+ transactions per second, compared to
Ethereum's 15. Cheap gas fees – Additionally,
the PoS model allows Cardano to offer
nominal transaction fees on its network.
Cardano uses Ouroboros, an algorithm that
uses proof-of-stake (PoS) protocol to mine
blocks.
The Cardano blockchain is composed of two
main elements:
The Cardano Settlement Layer (CSL) –
all the transactions are carried on. 2.) The
Cardano Computational Layer (CCL) – used
to deploy smart contracts and govern the
network.
Cheap gas fees – Additionally, the PoS model
allows Cardano to offer nominal transaction
fees on its network. The average cost of a
transaction on Cardano costs around 0.1 ADA,
which equates to a couple of cents. Compare
this to the price of Ethereum of $15 per
transaction.
A higher degree of decentralization – The
network becomes increasingly decentralized
because everyone can become a node
validator in Ouroboros. At the moment, there
are more than 1500 validator pools in
Cardano.
Eco-friendly – one of the main concerns in
the 2021 bull run is the high amount of
electricity required by PoW blockchains such
as Bitcoin and Ethereum. Cardano, with its PoS
mechanism, consumes 99% less electricity
than either of these blockchains.
Passive income – finally, every Cardano
holder has the opportunity to gain passive
income by staking their ADA coins. The
procedure is as simple as purchasing ADA
tokens and locking them up in a wallet such
as Yoroi.
Why Ada..?

6. What problem does
Cardano solve?

7. Cardano aims to solve problems related to scalability,
interoperability, and sustainability on cryptocurrency
platforms.

8. scalability
 The first problem refers to the slowing down of
networks and high fees due to increase in
transaction volumes. (See also: Will High
Transaction Fees Bring Down Bitcoin's Price?)
Cardano’s algorithm Ouroboros has been put
forward as a possible solution to its scaling
problems.
 Ouroboros utilizes a Proof of Stake (PoS)
approach to save on energy costs and enable
faster transaction processing. Instead of having a
copy of individual blockchains on each node (as
is common in bitcoin), Cardano’s blockchain
streamlines the number of nodes in a network by
appointing a leaders responsible for verifying
and validating transactions from a collection of
nodes. Subsequently, the leader node pushes
transactions to the main network

9. interoperability
 Interoperability relates to the portability of a
cryptocurrency both within its natural ecosystem and
in its interface with the existing global finance
ecosystem. Currently, there is no way to perform
cross-chain transactions between cryptocurrencies or
to conduct a seamless transaction involving
cryptocurrencies and the global finance ecosystem.
Exchanges, which crash or charge exorbitant fees, are
the only intermediaries. An assortment of regulations
pertaining to customer and transaction identities has
further distanced the cryptocurrency ecosystem from
its global counterpart.
 Cardano aims to enable cross chain transfers through
side chains, which conduct transactions between two
parties off chain. It is also exploring ways for
institutions and individuals to selectively divulge
metadata related to transactions and identities to
enable use of cryptocurrencies for trading and daily
transactions.

10. sustainability
 Finally, sustainability is about governance
structures that provide incentives to miners and
other stakeholders and about evolving a self-
sustaining economic model for the
cryptocurrency. In addition to this, it aims to
build what its creators describe as a
"constitution" of protocols to avoid messy hard
forks (such as the ones that occurred in bitcoin
and Ethereum).
 In the future, protocols will be hard coded into
Cardano blockchains and applications using the
protocol, such as online exchanges and wallets,
will automatically check for compliance as the
applications are being built. The automation
could also cut down time required to discuss
and implement forks. Hoskinson has referred to
it as “mechanization of a social process.”

11. Ouroboros (pos)
 Ouroboros processes transaction blocks by dividing chains into epochs, which
are further divided into time slots.
 A slot leader is elected for each time slot and is responsible for adding a block
to the chain
 Each slot has a slot leader chosen by a “lottery” system. In this system, the
higher the stake, the better the chances of winning the lottery. Slot leaders are
responsible for the following tasks:
Validating a Transaction
Creating transaction blocks
Adding newly-created blocks to the Cardano blockchain

12.  The founder sort-out the all problem he using a simple consensuses mechanism
(POS)
 To define proof-of-stake we should look at what staking is.
 Staking validates transactions on the blockchain.
 Individuals can stake cryptocurrencies, for example, directly from their crypto wallet.
 Cryptocurrencies can also be staked on exchanges.
 Users stake funds by depositing them to a node.
 These nodes will then compete for the opportunity to validate transactions.
 Validators are then rewarded, often with transaction fees.
Cont..

13.  Nodes become validators once they hold a specific number of tokens.
 The algorithm uses a pseudo-random election process to decide which node is
the validator.
 The size of the stake helps increase the chance of a node being selected,
 but there are tools in place to ensure that the wealthiest nodes are not always chosen as
validators.
 Inside a blockchain network, an epoch is considered a specific period of time. (5days)
 This period of time is used to specify when specific events in a blockchain network
will occur,
 such as when incentives will be distributed or when a new group of validators will be
assigned to validate transactions.
Cont..

14. How Ouroboros Works.
Ouroboros processes transaction
blocks by dividing chains into
which are further divided into time
slots. A slot leader is elected for each
time slot and is responsible for adding
a block to the chain

15. Staking Pools
Cardano uses the proof-of-stake
consensus mechanism, where users
"stake" a coin for the opportunity to
become a validator. Users can
participate in the staking and validation
process in two ways. You can become a
stake pool owner or a stake pool
operator. Stake pools are trusted server
nodes that conduct the work of
validating transactions.

16. Cardano
Development
Phases
 Cardano is being built in five phases toward achieving its goal
developing the network into a decentralized application (DApp)
development platform with a multi-asset ledger and verifiable
smart contracts
1. Foundation (Byron era)
2. Decentralization (Shelley era)
3. Smart Contracts (Goguen era)
4. Scaling (Basho era)
5. Governance

17. Is Ethiopia using Cardano?
 Cardano's main applications are in identity management and traceability. The
former application can be used to streamline and simplify processes that require
the collection of data from multiple sources.
 Cardano/IOHK Plans to Launch the Ethiopia Student Blockchain Project in
Two Months' A project the team behind Cardano (ADA) to equip students in
Ethiopia with digital identities and credentials is moving forward, with a planned
launch of the first phase set to happen “in the next two months.”08-Apr-2022
 The organizations behind Cardano have released three products: Atala PRISM,
Atala SCAN, and Atala Trace. The first product is marketed as an identity
management tool that can be used to provide access to services. For example, it
can be used to verify credentials to open a bank account or eligibility
for government aid. The other two products are being used to trace a product’s
journey through a supply chain

18. Key points
Cardano is a blockchain project
founded by Charles Hoskinson, co-
founder of ethereum, to “provide a
more balanced and sustainable
ecosystem” for cryptocurrencies
Cardano is a blockchain platform
that aims to be a decentralized
application (DApp) development
platform with a multi-asset ledger
and verifiable smart contracts.4
Cardano is being built in five stages:
foundation, decentralization, smart
contracts, scaling, and governance.
Cardano runs on the proof-of-stake
Ouroboros consensus protocol and
developments are informed by
scholarly academic research.
The primary cryptocurrency of
Cardano is called "ada."
Cardano oversight is decentralized
and shared by The Cardano
Foundation, IOHK, and EMURGO.

19.  https://www.investingcube.com/what-makes-cardano-unique-5-most-
prominent-advantages/
 https://coinmarketcap.com/currencies/cardano/
 https://cardano.org/
 https://www.investopedia.com/cardano-definition-4683961
 https://www.coinbase.com/learn/crypto-basics/what-is-cardano
 https://medium.com/@carloslopezdelara/whats-ouroboros-the-cardano-
proof-of-stake-protocol-ad4b958e152e
Reference

20. Thankyou...!