Cardano

Cardano is a Proof of Stake blockchain platform for smart contracts and decentralized applications, with ADA as its native cryptocurrency. Founded by Ethereum co-founder Charles Hoskinson and developed by IOHK (Input Output), Cardano launched in 2017 and is distinguished by its research-driven approach: major features are grounded in peer-reviewed academic work before being implemented on the network.

How Cardano works

Cardano uses a Proof of Stake system in which ADA holders can stake their tokens — delegating them to stake pools or running pools themselves — to help validate transactions. Validators are selected in proportion to the stake they represent and earn ADA rewards for participation. This consumes far less energy than Proof of Work mining while keeping the network secure. Notably, staked ADA on Cardano is not locked up: holders retain full control of their funds while delegating.

The platform uses a layered design that separates the settlement layer, which handles ADA payments, from the computation layer, which runs smart contracts. This separation allows each function to be optimized independently. Smart contract capability arrived with the Alonzo upgrade in 2021, enabling DeFi applications, NFTs, and other on-chain services.

Supply and governance

ADA has a fixed maximum supply of 45 billion tokens, of which roughly 37 billion are in circulation. Beyond payments and staking, ADA is used for on-chain governance: holders can vote on protocol changes and on funding proposals for ecosystem development, part of Cardano's long-term goal of becoming a fully community-governed network.

Within the broader ecosystem, Cardano positions itself as a methodical alternative among Layer 1 smart contract platforms — prioritizing formal methods, security, and gradual, evidence-based upgrades over rapid iteration. The token is named after Ada Lovelace, the 19th-century mathematician often described as the first computer programmer.