Cardano Wallet

Cardano Technology

Cardano (ADA) has its own unique ecosystem. The mission of the Cardano ecosystem is to improve the positive aspects of previous blockchain ecosystems and eliminate their shortcomings, beginning with solving the problems of scaling and energy consumption.

In the Ethereum network, writing to the blockchain and launching a smart contract are performed in the same transaction, increasing the size of the required gas. The Ethereum blockchain does not allow you to store these types of data separately from each other. This Ethereum flaw became the basis for the development of Cardano (ADA).

Cardano two-layer structure

The Cardano project continues to develop. The “Goguen era” update (smart contracts) adds the ability to build multi-functional DApps on the Cardano blockchain. Goguen's task was to launch “Plutus”: a purpose-built smart contract development language and execution platform, using the functional programming language “Haskell”. “Goguen era” also made Cardano available to a wide audience through “Marlowe”. It allows financial and business experts with no technical knowledge to create smart contracts.

The “Basho era” update was designed to increase scalability. “Basho era” is improving the underlying performance of the Cardano network, makes support growth better, and adoption for dAPPs with high transaction volume.

Cardano Consensus

Cardano Cryptocurrency (ADA) uses the Proof-of-Stake (PoS) consensus method, based on the special Ouroboros protocol, which was developed by scientists from universities in Edinburgh, Connecticut, IOHK, and the Tokyo Institute of Technology. According to the creators of Ouroboros, this is the first and only protocol with mathematically-proven security.

The work of the blockchain is divided into “eras” (the lifetime of each “era” is 10 minutes,). Each “era” has slots. These slots are blocks that will be created. Using a special algorithm, one of the token holders is randomly selected to “close” each slot. They act as a consensus node aka a slot leader. Token holders can also “vote” for nodes using their ADA (the more coins you have, the more significant your vote is), thus increasing their chances of being "chosen". The slot leader confirms the slot, proceeding to confirm the next randomly selected slot. After the end of the “era”, rewards for closed slots are distributed among slot leaders.