What is Cardano?

Cardano is a blockchain platform founded in 2017 by Charles Hoskinson, who previously contributed to the development of Ethereum. The platform employs a proof-of-stake consensus mechanism, allowing users to stake its native cryptocurrency, ADA, to partake in transaction validation and governance. This structure aims to enhance energy efficiency compared to traditional mining methods. Cardano's architecture includes a two-layer system that separates payment transactions from smart contract functions, optimizing performance for each.

The governance model of Cardano includes multiple organizations: Input Output Global (IOG) oversees technical development, the Cardano Foundation focuses on adoption and standardization, and Emurgo aids businesses in blockchain integration. These organizations collectively manage the platform and provide a distributed approach to decision-making. ADA can be used for transaction fees, international money transfers, and staking rewards, which incentivize holders to lock up their tokens to support network security and participate in voting on proposed changes.