What is Cardano (for newcomers)

Cardano is a decentralized, open-source blockchain platform that was developed and launched in 2017 by Input Output Global (IOG) - formerly Input Output Hong Kong (IOHK) - a blockchain research and development company. The platform was created to address some of the scalability, security, and interoperability issues that plague many other blockchain networks, such as Bitcoin and Ethereum.

One of the key features of Cardano is its use of a proof-of-stake (PoS) consensus algorithm, which is designed to be more energy-efficient and secure than the proof-of-work (PoW) algorithm used by Bitcoin and other chains. With PoS, the chance of a node being selected to validate a block is proportional to the amount of Cardano tokens (ada) that the node holds. This means that, instead of expending energy to solve complex mathematical problems like with PoW, nodes on the Cardano network simply need to hold a stake of ada to participate in the consensus process.

Cardano also utilizes a multi-layer architecture, with a separate layer for smart contracts and another for decentralized applications (DApps). This design allows for greater flexibility and scalability, as different parts of the platform can be updated and improved independently of each other.

Technical innovations

In addition to its technical innovations, Cardano has a strong focus on security and governance. The platform uses a formal verification process to mathematically prove the correctness of its code, which helps to reduce the risk of bugs and vulnerabilities. Cardano also has a decentralized decision-making process through which stakeholders can propose and vote on changes to the network.

One of the main goals of Cardano is to enable the development of financial applications for underserved populations in developing countries. To this end, the Cardano Foundation, a non-profit organization that oversees the development of the platform, has partnered with organizations such as the World Bank and the Ethiopian Government to explore the use of Cardano for financial inclusion initiatives.

Overall, Cardano is a promising blockchain platform that has the potential to address many of the challenges faced by other networks. Its use of a PoS consensus algorithm, multi-layer architecture, and focus on security and governance make it an interesting choice for developers and organizations looking to build DApps.

Now that you know the basics about Cardano, you definitely need to use Cardano explorer to learn about its ecosystem.