• bitcoinBitcoin(BTC)$27,209.00-2.39%
    BITCOIN
    24H : -2.39%
    Volume : $18,753,141,697.00
    Marketcap : $525,250,832,292.00
  • ethereumEthereum(ETH)$1,714.77-2.91%
    ETHEREUM
    24H : -2.91%
    Volume : $9,754,382,720.00
    Marketcap : $206,243,125,271.00
  • tetherTether(USDT)$1.00-0.16%
    TETHER
    24H : -0.16%
    Volume : $29,530,531,478.00
    Marketcap : $79,306,267,103.00
  • binancecoinBNB(BNB)$308.54-5.99%
    BNB
    24H : -5.99%
    Volume : $1,031,404,867.00
    Marketcap : $48,608,807,277.00
  • usd-coinUSD Coin(USDC)$1.000.050%
    USD COIN
    24H : 0.050%
    Volume : $4,551,884,924.00
    Marketcap : $33,493,449,537.00
  • rippleXRP(XRP)$0.4817.15%
    XRP
    24H : 7.15%
    Volume : $3,280,550,908.00
    Marketcap : $24,844,298,760.00
  • cardanoCardano(ADA)$0.345-2.91%
    CARDANO
    24H : -2.91%
    Volume : $338,569,366.00
    Marketcap : $12,071,773,622.00
  • dogecoinDogecoin(DOGE)$0.073-1.41%
    DOGECOIN
    24H : -1.41%
    Volume : $557,526,600.00
    Marketcap : $10,145,024,365.00
  • staked-etherLido Staked Ether(STETH)$1,710.21-2.88%
    LIDO STAKED ETHER
    24H : -2.88%
    Volume : $22,421,889.00
    Marketcap : $10,036,165,721.00
  • matic-networkPolygon(MATIC)$1.05-4.77%
    POLYGON
    24H : -4.77%
    Volume : $480,345,375.00
    Marketcap : $9,514,491,092.00
  • News
    • Latest News
    • Press Releases
  • Markets
  • Articles
    • Opinion
    • Explainers
    • Guest Posts
    • Sponsored Posts
  • Policy
  • Videos
  • Podcasts
  • Learn
    • DeFi Basics
    • Blockchain Fundamentals
    • Tutorials
    • Reviews
  • Research
    • Case Studies
  • Explore
    • NFTs
    • DAOs
    • Crypto Gaming
    • Metaverses
    • Web3
    • Stablecoins
    • CBDCs
    • DeFi
  • Markets Pro
    • Swap Crypto
    • DeFi Planet Pro
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
  • News
    • Latest News
    • Press Releases
  • Markets
  • Articles
    • Opinion
    • Explainers
    • Guest Posts
    • Sponsored Posts
  • Policy
  • Videos
  • Podcasts
  • Learn
    • DeFi Basics
    • Blockchain Fundamentals
    • Tutorials
    • Reviews
  • Research
    • Case Studies
  • Explore
    • NFTs
    • DAOs
    • Crypto Gaming
    • Metaverses
    • Web3
    • Stablecoins
    • CBDCs
    • DeFi
  • Markets Pro
    • Swap Crypto
    • DeFi Planet Pro
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
No Result
View All Result
Home Articles

Introducing The Cardano Blockchain

3 August 2021
in Articles
Reading Time: 5 mins read
104 5
Introducing The Cardano Blockchain | DeFi Planet

Contents

  • Introduction
  • Cardano: Its Origin
  • What Cardano Is About?
  • Cardano’s Development Phases
  • How Ouroboros Functions
  • Conclusion

Introduction

Cardano is a third-generation blockchain that promises a high level of scalability, making it fast and capable of offering high throughput compared to earlier blockchains. Its sustainability level is linked to the fact that it uses “staking” instead of “mining”. Cardano also has an interoperability feature, making it compatible with other blockchains. This blockchain seeks to address the issues encountered in Proof of Work (PoW) platforms such as ever-increasing transaction fees linked to congestion, increasing energy usage, as well as incredibly slow transaction times, and decided to solve them.  

Cardano, unlike the older blockchains, uses a Proof of Stake (PoS) consensus mechanism, which is significantly less energy-intensive, and more environmentally friendly, than what is obtainable in PoW networks. Given how much computing power and the complex machinery that PoW blockchains use, there have been calls for more efficient blockchains that rely on alternative consensus mechanisms like PoS. 

Cardano: Its Origin

This ecosystem was created by a co-founder of Ethereum, Charles Hoskinson. He noticed the issues linked with PoW blockchains like Ethereum and decided to create a network that would solve those issues. He started working on Cardano in 2015 but launched it to the public in 2017. The native token, ADA, was named after 19th-century mathematician Ada Lovelace, often regarded as the first computer programmer. As for the underlying ecosystem, Cardano is named after Gerolamo Cardano, a 16th-century Italian polymath.

The Cardano Foundation, a Switzerland-based not-for-profit organization is responsible for overseeing the development of the Cardano blockchain.  The development work is outsourced mainly to two for-profit blockchain development companies: Input Output Hong Kong (IOHK), run by Charles Hoskinson; and EMURGO.

What Cardano Is About?

Unlike most blockchain projects, the team behind Cardano decided not to release a whitepaper to detail what they intended to do, instead, they created design principles to show how they would solve the problems seen in other platforms. 

Cardano works using the “Ouroboros” consensus protocol. Its team created Ouroboros, which is a Proof of Stake protocol that is highly secure and has been audited thoroughly.  

Every aspect of the development process is based on intense research and adds crucial peer thoughts into the creation. It is also a blockchain that includes evidence-based methods to ensure that it blossoms and continues to tick the boxes and milestones in its roadmap.

The Cardano Chain is divided into two parts, the Cardano Computational Layer (CCL), and the Cardano Settlement Layer (CSL). Having these features makes it different from the typical smart contract project. Ethereum possesses a single-layer architecture that results in issues around network connection, high transaction fees, and sluggish transaction times, but that is not the case with Cardano. 

Cardano solves these problems using CCL and CSL. As for the CSL layer, it allows peer-to-peer transactions to occur seamlessly, like the transfer of tokens between different users in the ecosystem. It acts as the balance ledger. 

In the CCL layer, Cardano stands apart from the rest, as it handles the computational needs of the chain, making it easy for smart contracts to work efficiently. The separation of the two layers affords CCL the flexibility to work more effectively. It comes with an off-chain protocol that allows users to customize rules when verifying transactions.

By incorporating the Ouroboros protocol into the mix, Cardano is solving the issues that have been seen in other consensus protocols and chains.  

A smart contract feature will be a part of Cardano, and it will serve as a layer where decentralized apps can be created seamlessly by developers. It will also encompass easy-to-use tools for developers to create DeFi platforms and other dApps. Its development team has stated that it will add Project Catalyst, a democratic on-chain governance system to allow the seamless development and execution of projects within its ecosystem.

Cardano’s Development Phases

Cardano’s Roadmap has stated that the project will be executed in five different stages to ensure that its goals are met. Every stage in the roadmap is named after a popular historical figure. 

  1. Foundation – The foundation period is called the Byron era.  
  2. Decentralization – This is called the Shelley era.  
  3. Smart Contracts – Goguen era is the period that smart contracts are introduced.
  4. Scaling – The scaling era is christened after the Basho era.
  5. Governance – As for the governance period, it is called the Voltaire era.

How Ouroboros Functions

Ouroboros divides time into different periods that include slots. Slots are fixed amounts of time, and they can be likened to the shift patterns seen in factories. At the moment, an epoch in Ouroboros stands for five days, while a slot is synonymous with a second. It is important to note that the numbers can be altered when agreed upon by members of the community. Immediately an epoch comes to an end, another starts immediately. 

Every slot has a leader that was chosen at random through a randomized lottery system. The system offered those with higher stakes a better opportunity of being chosen as slot leaders. 

Slot leaders are responsible for:

  • Validating transactions
  • Creating transaction blocks
  • Incorporating new blocks.

If it is noticed that the slot leader is unable to create a transaction block in the epoch, the mantle is passed to the successive slot leader. Every block made by the slot leader is analyzed by the input endorsers. The latter is made up of stakeholders that are elected depending on how many ADA they have staked. 

For Ouroboros to work effectively, a small number of token holders have to be regularly online to ensure that network connectivity is achieved. To ensure that computing power consumed is reduced drastically, stake pools are incorporated into the architecture. It takes out the need to use massive energy which has been a major bone of contention in Ethereum and Bitcoin. 

 

Conclusion

Cardano is solving the issues that are common in PoW chains like massive consumption of energy, high transaction fees, and sluggish confirmation periods. The fact that it was created by some members of the founding team behind Ethereum has added to its strengths because they know the issues surrounding Ethereum and are seeking to provide solutions in Cardano. 

 

For more articles like this, follow DeFi Planet on Twitter and LinkedIn

Don't miss out!

Subscribe To Our Newsletter

Receive top education news, lesson ideas, teaching tips and more!
Invalid email address
Give it a try. You can unsubscribe at any time.
Thanks for subscribing!
Tags: #blockchainBlockchaintechnology
Share63Tweet40Share11
Previous Post

A-Z Of Yield Farming In DeFi

Next Post

Polkadot: What You Need To Know

Rose Nnamdi

Rose Nnamdi

Related Posts

Unlock-The-Secrets-of-The-Metaverse-A-Detailed-Beginner's-Guide-To-Sandbox
Articles

Unlock the Secrets of the Metaverse: A Detailed Beginner’s Guide to The Sandbox

28 March 2023

As the gaming and cryptocurrency industries continue to evolve, the terms "metaverse" and "Play-to-Earn" are becoming increasingly prevalent. The rebranding of Facebook as "Meta" and the company's announcement of its vision for the metaverse has sparked excitement and speculation...

The-Complete-Guide-to-Investing-in-Cryptocurrency-Index-FundS
Articles

The Complete Guide to Investing in Cryptocurrency Index Funds

28 March 2023

Cryptocurrency index funds provide a straightforward way to invest in the cryptocurrency market, with the added benefit of potentially high returns.  Crypto newbies might find investing in cryptocurrency through regular brokerage accounts or retirement plans can be challenging due...

Silvergate-Bank's-Exit-A-Turning-Point-for-Crypto-Banking
Articles

Silvergate Bank’s Exit: A Turning Point for Crypto Banking?

28 March 2023

Silvergate Bank, a former crypto-friendly bank, suffered significant liquidity problems due to the decline in cryptocurrency markets in 2022 and the collapse of the crypto exchange FTX.  These events led to a significant outflow of funds, resulting in a...

Introducing-Stepn-The-Web3-Lifestyle-App-That-Pays-For-Exercising
Articles

Introducing StepN: The Web3 Lifestyle App That Pays for Exercising

28 March 2023

Yawn Rong and Jerry Huang had the idea to make money while doing something people already enjoy, like walking their dog. They co-founded and launched StepN based on that idea in December 2021. StepN is an activity-tracking app that...

Swap Crypto

Markets Update

Terra Luna Classic Trades at $0.00012, Dips 2.79%: Can LUNC Reach $1?

20 hours ago

XRP Trading at $0.4487 With 5% Surge in 24 Hours; Is $1 Target Achievable?

6 days ago

Shiba Inu’s Value Falls by 1.27% in the Last 24 Hours

3 weeks ago

Ethereum Surges by 5% in a Week; Anticipation Builds for Shanghai Upgrade; Is $2000 in Sight for ETH?

1 month ago

2023 Crypto Regulation Watch: January Recap

1 month ago

Ethereum (ETH) Market Watch: A Weekly Price Analysis

1 month ago
Read More

Spotlight

All about SolChicks

All about Algorand

All about Bitcoin

All about Goracle

Press Releases

Vybe Launches Bntyhntr: A Digitalized Treasure Hunt Product on the Algorand Chain

Vybe Launches Bntyhntr: A Digitalized Treasure Hunt Product on the Algorand Chain

byGuest Author
25 January 2023
0

...

BetDEX-Exchange-to-Launch-on-Solana-Mainnet-Ahead-of-2022-FIFA-World-Cup.jpg

BetDEX Exchange to Launch on Solana Mainnet Ahead of 2022 FIFA World Cup

byGuest Author
8 November 2022
0

...

BetDEX-Exchange-Becomes-First-Fully-Licensed-Sports-Betting-Exchange-on-Blockchain.jpg

BetDEX Exchange Becomes First Fully-Licensed Sports Betting Exchange on Blockchain

byGuest Author
1 November 2022
0

...

Metrika Partners with Axelar to Help Delegators Maximize Staking Rewards

Metrika Partners with Axelar to Help Delegators Maximize Staking Rewards

byGuest Author
12 October 2022
0

...

Y7 Marketing is Launching the First Decentralized Marketing DAO on Algorand

Y7 Marketing is Launching the First Decentralized Marketing DAO on Algorand

byGuest Author
17 August 2022
0

...

Read More
  • About Us
  • The Team
  • Careers
  • Contact
  • Partnerships

© Copyright 2022 DeFi Planet   |   Terms & Conditions   |   Privacy Policy

No Result
View All Result
  • News
    • Latest News
    • Press Releases
  • Markets
  • Articles
    • Opinion
    • Explainers
    • Guest Posts
    • Sponsored Posts
  • Policy
  • Videos
  • Podcasts
  • Learn
    • DeFi Basics
    • Blockchain Fundamentals
    • Tutorials
    • Reviews
  • Research
    • Case Studies
  • Explore
    • NFTs
    • DAOs
    • Crypto Gaming
    • Metaverses
    • Web3
    • Stablecoins
    • CBDCs
    • DeFi
  • Markets Pro
    • Swap Crypto
    • DeFi Planet Pro
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00