Cardano (ADA) History, Founders, and Everything You Need to Know
Cardano sets itself apart in the growing crypto world, focusing on scientific research, academic reviews, and sustainability. Let’s explore the history, creators, and key principles of Cardano and its popular currency, ADA.
What is Cardano (ADA)?
Cardano (ADA) is a new blockchain and cryptocurrency designed to overcome the limitations of older systems like Bitcoin and Ethereum. It’s unique for its research-based approach and two-layer architecture: one for ADA transactions and the other for smart contracts and apps.
This structure makes it more flexible and easier to update. Cardano also focuses on sustainability and aims to empower people and improve global systems with its technology.
Cardano (ADA) History of Creation
Cardano, launched in September 2017, started with the aim of building a more secure and scalable blockchain than predecessors like Bitcoin and Ethereum. Its development focused on peer-reviewed research, emphasizing careful, secure growth over speed. This methodical approach sets Cardano apart in addressing challenges like scalability and sustainability.
Founders & Key Figures of Cardano (ADA)
In this section, we delve into the key figures behind Cardano’s inception and continuous development:
- Charles Hoskinson:
a) Co-founded Ethereum.
b) CEO of IOHK (Input Output Hong Kong), which drives Cardano’s development.
c) Envisioned Cardano as a third-generation cryptocurrency.
2. Jeremy Wood:
a) Collaborated with Hoskinson on Ethereum.
b) Co-founded IOHK.
Together, their combined experiences and vision birthed Cardano, focusing on a harmonious ecosystem for users and innovators.
The Team Behind the Cardano (ADA)
A global network of academics and engineers supports Cardano. Three main organizations manage its development:
- IOHK: Builds the technology. Founded in 2015 by Charles Hoskinson and Jeremy Wood, IOHK is a leader in blockchain research and development.
- Cardano Foundation: An independent Swiss organization, it standardizes, protects, and promotes the Cardano Protocol.
- Emurgo: Focuses on venture-building. Emurgo invests in startups and supports businesses aiming to transform their industries using Cardano’s blockchain.
Notable Features and Innovations of Cardano (ADA)
Cardano stands out as a blockchain platform with a scientific and research-led approach. Its key features and innovations include:
- Ouroboros Proof-of-Stake (PoS) Algorithm:
Unlike Bitcoin’s energy-heavy Proof-of-Work, Ouroboros is an energy-efficient PoS algorithm, offering strong security and the distinction of being the first academically peer-reviewed.
2. Layered Architecture:
Cardano separates into two layers: The Cardano Settlement Layer (CSL) for token transactions and the Cardano Computation Layer (CCL) for smart contracts. This split enhances flexibility and security.
3. Sustainability:
Cardano’s treasury system contributes to its long-term viability. A part of transaction fees funds this treasury, which supports future development via democratic voting.
Cardano (ADA) development process
Cardano’s development follows distinct phases, each targeting specific goals and challenges. These phases are milestones towards a fully decentralized and autonomous platform.
- Byron Phase:
Focus: Laying the foundation of the Cardano network, enabling initial ADA transactions.
Features
a) Launch of the Cardano mainnet.
b) Availability of ADA for trading.
c) The Daedalus wallet for ADA transactions was introduced.
2. Shelley Phase:
Focus: Starting Cardano’s decentralization, transitioning from a federated system to a decentralized network with ADA holder participation.
Features:
Implementation of Ouroboros Genesis Proof-of-Stake protocol.
a) Introduction of staking and delegation mechanisms.
b) Creation of stake pools for ADA holders to delegate stakes and earn rewards.
c) Improved network security and performance.
3. Goguen Phase:
Focus: Integrating smart contracts, enabling DApps development, and broadening use cases.
Features:
a) Introduction of smart contract platforms Plutus and Marlowe.
b) Enhanced transaction metadata.
c) Multi-currency support, allowing custom tokens alongside ADA.
4. Basho Phase:
Focus: Enhancing scalability and performance as the network and user base grow.
Features
a) Introduction of sidechains for parallel processing.
b) Ouroboros Hydra upgrade for scalability.
c) Improved infrastructure for performance and flexibility.
5. Voltaire Phase:
Focus: Achieving sustainability through a self-sustaining system with community governance.
Features:
a) On-chain voting and treasury systems.
b) Project Catalyst for community-driven proposals and voting.
c) A decentralized treasury for ongoing development funding.
Each phase in Cardano’s evolution signifies technical advancement and its commitment to a decentralized, scalable, and sustainable blockchain guided by peer-reviewed research.
Differences and Similarities Between Cardano and Ethereum
Cardano and Ethereum share similarities as leading blockchains with their cryptocurrencies, ADA and ETH, and both support decentralized apps and smart contracts using a proof-of-stake system. Ethereum, older and more established, has a higher transaction volume and advanced smart contract development but faces higher fees and scalability issues during peak times.
However, they differ in key areas: Ethereum processes more transactions but with higher fees, while Cardano, with a cap on ADA supply, focuses on scalability, handling more activity efficiently. Ethereum’s ETH has no supply cap but includes mechanisms for annual limits and burning ETH used in fees.
Conclusion
Cardano distinguishes itself in the crypto world by combining innovative ideas, detailed research, and a drive to enhance blockchain technology. With ADA’s growing presence, its team’s efforts mark it as a notable player in the tech industry.
Check out our detailed guide about ADA on the EXOLO blog. It covers everything from how ADA works to its uses and future possibilities.
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