2. 2
Cardano is labelled as a third generation blockchain that works on Proof of stake
Consensus algorithm which was developed by Input Output Hong Kong (IOHK) in the
year 2015 with multiple professionals like Engineers, Scientists, Mathematicians.
3. “
3
Five Prominent Phases of Cardano
● Byron: It is the very first phase involves transferring of ADA
● Shelley: This phase directed towards decentralization in 2020
● Goguen: Functional smart contract roll out on this update
● Basho: It focuses on scalability and interoperability
● Voltaire: In this phase, the treasury system is incorporated.
4. How Does Cardano (ADA) Work ?
Cardano works to sort out the scalability issues associated with
the first generation blockchain. All suffer from bottlenecks which
fundamentally reduces the whole throughput. The prime issue here
is that, It tends to degrade the capable potential of the system,i.e, it
drastically reduces the volume of transactions thus preventing the
mass adoption. Ouroboros, the significant Proof of Stake (POS)
mechanism reduces the energy cost. Cardano's 2nd layer provides
scalability solutions. The idea is that the throughput increases
every time with the addition of a new node.
5. What is Ouroboros?
5
Orobouros, the kind of Proof-Of-Stake consensus algorithm runs on the cardano
software that validates transactions, minted ADAs and promotes network security.It
is divided into epochs and slots.
epochs are categorized as time frames whereas slots are sections of increments
within epochs. Slot leaders are the responsible persons for the addition of blocks
7. 7
● As mentioned earlier, more towards academic and scientific
research
● Cardano holds well planned roadmap with futuristic view
● Provides Ultra security, scalability and effective interoperability
● They have planned to implement scalable smart contract
● Cardano aims to acts as a foundation for crypto applications
● Cardano is energy efficient which consumes 6 giga watt hour
where BTC and ETH consumes 150 and 50 Gigawatt hours
9. 9
ADA is the native token of cardano which was distributed in ICO that has raised upto 62
million dollars. ADA holders can stake ADA in stake pools and can earn rewards
To Store ADA, one can use desktop software wallet as well as light wallet
A desktop software wallet developed by IOHK can store ADA, meaning that it can
download full cardano blockchain.
Light wallet does not require full download of blockchain. Some cold wallets like ledger,
Trezor and Adalite are capable of storing ADA
