Bruce Dias 
Crypto is the talk of the day, especially recently since Bitcoin hit a new all-time high and another session of sell-offs. ADA emerges as a top contender among those with the largest market capitalizations, being outrun by Dogecoin, UDSC, Solana, and BNB as immediate contenders, boasting a figure of around $27.68BN by press time. The crypto is known among seasoned investors and newcomers alike thanks to its securing of the #9th spot in the top cryptos. But is the blockchain that makes investments in Cardano basking in the same popularity?
If the following must-know but not-so-widespread facts about the Cardano blockchain ring a bell to you, you might be among the few knowledgeable ones or a very determined crypto fan.
Scrapping the surface
Cardano, known as a “third-generation” blockchain, is a protocol that uses blockchain technology and is one of the largest cryptos worldwide. Notably, Cardano’s inherent crypto, ADA, is used to pay fees, stake, and facilitate transactions. Cardano aspires to be more scalable and sustainable than previous generations. It’s also a platform where developers create decentralized applications (dApps) via blockchain-stored smart contracts.
Some of Cardano’s main features include ,but aren’t limited to:
- Cardano’s dual-layer architecture separates transaction settlement from smart contract execution, enhancing security and scalability;
- Cardano’s philosophy is to be driven by solid academic research and to use evidence-based solutions;
- Cardano can be accessed by anyone thanks to its open-source and decentralized blockchain;
- Cardano’s consensus mechanism overtakes proof-of-work (PoW) ones in energy-efficiency;
- Like Ethereum, Cardano helps developers create apps and smart contracts.
Ouroboros, the original provably safe PoS mechanism
One of Cardano’s lesser-known facts is that it uses an innovative proof-of-stake (PoS) consensus mechanism and a unique, pluggable architecture. The system, known as Ouroboros, is created with scalability and energy efficiency in mind.
Unlike Bitcoin, which relies on miners to solve complex and energy-intensive problems to build blocks, Cardano uses unbiasedly chosen validators based on their amount of AD. They “stake” their coins unilaterally, similar to how Ethereum stakers do. This method not only significantly reduces energy consumption but also allows for more participation and decentralization.
A pluggable architecture
Cardano has a pluggable architecture or a flexible model that permits various network components to be upgraded, swapped, or customized without needing an entire system overhaul. For example, consensus algorithms, network layers, and ledger rules can be created and upgraded independently. This makes Cardano super adaptable, future-proof, and research-driven.
Moreover, it reflects the platform’s commitment to peer-reviewed development, allowing Cardano to evolve while maintaining stability and security. The PoS model and modular design secure Cardano’s renown as one of the most advanced blockchains.
Who created Cardano?
Cardano’s development began in 2015 following Charles Hoskinson’s exit from Ethereum. As a co-founder of Ethereum, Hoskinson leveraged his prior blockchain experience, though his departure was caused by disagreements with Vitalik Buterin, Ethereum’s prominent co-founder. In summary, Buterin envisioned Ethereum as an NGO, while Hoskinson looked to build a company and take venture capital.
Alongside Jeremy Wood, they established their strategy for setting up Cardano in 2015. They both co-founded the Input Output Hong Kong (IOHK), which now runs under the Input Output Global (IOG) name, which represents a blockchain-specialized software development company. This project laid the foundation for the development of Cardano. The Cardano blockchain platform was officially launched and made available to the public in 2017.
Initially, Cardano was in control of three entities:
- Switzerland-based, non-profit organization Cardano Foundation, working to promote Cardano and ensure its acceptance as a public blockchain infrastructure
- IOHK, the engineering business that contributed to the Cardano blockchain’s development
- Emurgo, which was in charge of commercial apps.
2021 marked one of the most noteworthy milestones
It was 2021 when Cardano had its big success, landing fourth place among the top cryptos by market capitalization, with a figure standing at $77BN. A year later, Brand Intimacy Agency MBLM offered Cardano the 26th position in its top 600 brands for intimacy rankings, positioning it between titans Ford and Nestlé. That made Cardano the highest-ranking crypto on the list.
According to Ad Age, this could be thanks to the “gambling vibe” often linked to cryptocurrency.
Cardano’s atypical trait
Unlike most cryptocurrencies, Cardano lacks the traditional white paper that sums up the essential data of a crypto or blockchain project. Bitcoin has a white paper, for instance, named “A Peer-to-Peer Electronic Cash System” and underscores the network’s basic structure, written by the pseudonym Satoshi Nakamoto. Cardano, instead, is built with some principles aimed at addressing common issues in earlier blockchain platforms, such as interoperability, scalability, and regulatory compliance. Cardano takes pride in being an improved version of previous, larger-cap cryptocurrencies like Bitcoin and Ethereum. It argues that Bitcoin lacks flexibility and speed, while Ethereum isn’t scalable or secure altogether.
What Cardano has in common with the primary blockchain and crypto is the use of a UTXO (unspent transaction output) model. However, Cardano’s one is expanded and labeled under the name extended version (EUTXO). This is to support complex scripting capabilities and smart contracts.
Cardano’s partnerships
A few collaborations helped Cardano gain international attention. Among its main goals was to contribute to educational progress, security improvements, and enterprise adoption. Cardano’s partnerships include all sorts of institutions, from government agencies to universities to tech companies. Among the main ones are:
- A partnership with Rio de Janeiro’s Pontifical Catholic University to improve Brazil’s energy sector
- One with Universidad Tecnológica Nacional of Buenos Aires, intended to promote blockchain research and education in Argentina
- A partnership with one of the biggest public IT companies worldwide, SERPRO (Brazilian Government IT), aims to speed up digital transformation and blockchain adoption within the government.
Have you ever wondered what’s the meaning behind Cardano and Ada?
Cardano’s roots are tied to Gerolamo Cardano, who is remembered as one of the leading mathematicians during the Renaissance period and known for engaging with physics, biology, chemistry, astrology, philosophy, and music, to name a few subjects of interest.
On the other hand, the inspiration behind the name ADA lies in the name of Ada Lovelace, an Italian mathematician who was active in the 19th century and is often regarded as the first computer programmer.
All of Cardano’s attributes position it among the most influential blockchain names in education, research, and IT development.
