What is Cardano?

Cardano is a blockchain platform founded in 2017 by Charles Hoskinson, who also co-created Ethereum. The platform is designed for smart contracts and decentralized applications, utilizing a proof-of-stake system that significantly reduces energy consumption compared to traditional cryptocurrency mining. Its native cryptocurrency, ADA, is employed for transactions, network governance, and staking, where users can become validators by locking up their ADA. The architecture features a two-layer design to optimize transaction processes and smart contracts independently.

The operational structure of Cardano involves three organizations: Input Output Global (IOG), which manages its technical development, the Cardano Foundation, which focuses on adoption and standardization, and Emurgo, which assists businesses in integrating blockchain technology. This distributed governance model allows for shared responsibilities rather than centralized control. In February 2025, Grayscale Investments applied to create an exchange-traded fund for Cardano to facilitate traditional investors in purchasing ADA without needing cryptocurrency wallets.