L1

Cardano ADA

A research-driven proof-of-stake blockchain emphasizing formal verification, peer-reviewed protocol design, and academic rigor.

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Founded
2017
Founder
Charles Hoskinson
Consensus
Proof-of-Stake (Ouroboros)
Max Supply
45,000,000,000

What ADA is

Cardano is a Layer 1 blockchain founded in 2017 by Charles Hoskinson, an Ethereum co-founder who left the project over governance disputes. Cardano is unusual among major blockchains for its development approach: every protocol upgrade is preceded by formal academic papers, peer review, and a multi-phase rollout (Byron, Shelley, Goguen, Basho, Voltaire). Native token ADA is named after Ada Lovelace.

How it works

Cardano runs the Ouroboros proof-of-stake consensus protocol, which was published as a peer-reviewed paper before deployment. Stakers delegate ADA to stake pools, which produce blocks and earn rewards distributed to delegators. Cardano supports smart contracts via Plutus (a Haskell-derived language) since the Alonzo upgrade in 2021. Block times are ~20 seconds; transaction fees are typically a fraction of a cent.

Use cases

Cardano hosts a smaller DeFi ecosystem than Ethereum or Solana but with active projects in lending, DEXs, and stablecoins (notably DJED, an over-collateralized stablecoin). It also has notable adoption in identity and supply-chain projects, particularly in African countries through partnerships with governments and NGOs. The Project Catalyst voting platform funds community proposals from a treasury.

Tradeoffs and criticism

Cardano's deliberate, research-first development approach has been both its differentiator and its biggest criticism: features ship more slowly than competitors, and adoption has lagged ecosystems that move faster. Smart contract development in Plutus has a steeper learning curve than Solidity. Supporters argue the rigorous approach reduces long-term protocol risk.

Where to track ADA

See the staking entry for context on Cardano's PoS model.

Related coins

Frequently asked questions

Who created Cardano?
Cardano was founded by Charles Hoskinson, who was previously a co-founder of Ethereum. Development is led by IOG (Input Output Global, formerly IOHK) along with the Cardano Foundation and Emurgo.
Does Cardano have smart contracts?
Yes, since the Alonzo upgrade in September 2021. Smart contracts are written in Plutus (Haskell-based) or Aiken, with execution semantics derived from the eUTXO model rather than Ethereum-style account-based.
How does Cardano staking work?
ADA holders delegate stake to stake pools through a wallet. Delegated ADA never leaves the holder's wallet; the pool operator produces blocks on behalf of all delegators and rewards are distributed proportionally. Yields are typically 3-5% APY.