What is Cardano

What Is Cardano?

Cardano is the world’s first peer-reviewed blockchain and a third generation cryptocurrency (ADA). It is a proof-of-stake blockchain platform: the first to be founded on peer-reviewed research and developed through evidence-based methods. The nonprofit foundation responsible for Cardano assembled a network of academics and scientists from various universities, including the University of Edinburgh and Tokyo Institute of Technology, for the purpose to review its protocols before they are released. It is a third generation cryptocurrency and smart contract platform that improves upon the scaling problems of Bitcoin (first-generation cryptocurrency) and Ethereum (which is a second- generation cryptocurrency).

Cardano combines pioneering technologies to provide security and sustainability to decentralized applications, systems, and societies. Cardano exists to redistribute power from unaccountable structures to the margins – to individuals – and be an enabling force for positive change and progress.

Cardano is home to the ADA cryptocurrency, which can be used to send and receive digital funds online. This digital cash represents the future of money, making possible fast, direct transfers that are guaranteed to be secure through the use of cryptography and the “proof of stake” algorithm.

What is Cardano Coin

Cardano is the name of the blockchain that allows people to send and receive digital funds. ADA coin is the name (ticker) of the cryptocurrency. The coin is one of the top 10 digital coins in terms of market capitalization and is available to trade on most of the largest crypto-exchanges. You can trade ADA for USD or for another cryptocurrency on these exchanges.

What is Cardano Shelley

Shelley is a major update of the Cardano cryptocurrency.

The Shelley era encompasses the critical early steps in Cardano’s journey to optimize decentralization. More and more nodes will shift towards being run by the Cardano community. Once the majority of nodes are run by network participants, Cardano will be more decentralized and enjoy greater security and robustness as a result.

Shelley will also see the introduction of a delegation and incentives scheme, a reward system to drive stake pools and community adoption. As a proof-of-stake network, users can stake their ADA to participate in the network. The delegation and incentive scheme will allow and encourage users to delegate their stake to stake pools – always-on, community-run network nodes – and be rewarded for honest participation in the network. For example NoCentralAuthority’s stake pool NCA is built and runs on the latest Shelley blockchain. You can safely delegate Cardano coins to the stake pool to participate in the network and in return to receive regular rewards. Participants may decide not to stake their coins, but they will not receive rewards from the stake pool.

What is cardano staking

Ada held on the Cardano network represents a stake in the network, with the size of the stake proportional to the amount of ADA held. If you hold 10% of all available ADA, you have a 10% stake in the network.

Read more: How to stake Cardano and earn rewards – Complete guide.

The ability to delegate that stake is fundamental to how Cardano works. There are two ways a Cardano holder can earn rewards, and thus be incentivized to keep the network running: by delegating their stake to a stake pool run by someone else, or running their own stake pool. The amount of stake delegated to a given stake pool is the primary way the network chooses who should add the next block to the blockchain, and get a monetary reward for doing so. The more stake is delegated to a stake pool (up to a certain point), the more likely it is to make the next block. Then the rewards are shared between everyone who delegated their stake to that stake pool.

Anybody that has ADA stored in either a Daedalus or Yoroi wallets can participate and earn rewards through delegation or running a stake pool.

Must read: Learn more how to choose a good stake pool for higher rewards and reliability.