What is Cardano and what is it used for?

Cardano is a blockchain platform that has its own native cryptocurrency named ADA. The aim of Cardano is to address issues users experience using other blockchain platforms such as scalability, sustainability, and interoperability as a third-generation blockchain platform. 

Different types of industries can benefit from using Cardano platforms, such as banks, food, and even the entertainment industry, as its blockchain network can record transactions in a virtually immutable manner. These industries can also use this type of blockchain network to verify and record transactions without the need for central authority. 

Cardano blockchain technology is becoming more widely accepted in online platforms. Among these, many eCommerce sites and software companies now accept it as a payment method. Leading the way with mainstream adoption, online casinos have become champions of cryptocurrencies like Cardano as they help streamline payouts and cater to easier registration processes. 

Found on online casinos such as Cardano dice platforms, these sites can track and verify transactions on the Cardano blockchain, making them quicker, faster, and cheaper than traditional transactions. With all this in mind, below we dive into the history and functionality of Cardano, as well as what other transactions it can be used for. 

History of Cardano

Charles Hoskinson, one of the co-founders of Ethereum, founded Cardano in 2015.  The project was named Cardano after Gerolamo Cardano, the 16th-Century Italian mathematician. Its native cryptocurrency is named ADA, after the computer science pioneer ADA Lovelace. 

It was created to develop a more secure and scalable blockchain platform to address the limitations users are experiencing with cryptocurrencies like Ethereum and Bitcoin. In September 2017, the first phase was officially launched and was known as the Byron Era. 

After the launch of the ADA cryptocurrency and the development of a secure wallet, Cardano underwent several phases of development which enhanced its functionality and expanded its capabilities. After the Byron Era (2017-2019), the Shelley Era launched in July 2020. 

This era transitioned towards decentralization, by introducing the Proof of Stake (PoS) consensus mechanism which allowed users to participate in the network by staking their ADA. In 2021, the Goguen Era was started and this was to introduce the phase of smart contracts being used on the Cardano platform.   

Technical Overview of Cardano

Cardano has different aspects making up their platform. These include the blockchain architecture, smart contracts, and decentralized applications (dApps). 

Blockchain Tech

The blockchain is a distributed ledger technology that allows transparent, secure, and tamper-proof record-keeping, using the methods below: 

• Blocks are used to store data of transactions. These blocks are each linked to the previous ones that form a chain. Once a new block is added, the previous block cannot be altered without changing all the previous blocks.    

• Nodes are individual computers that are on the blockchain network. Each node has a copy of the entire blockchain which ensures resilience and redundancy. 

• Consensus mechanisms are algorithms used to validate transactions and add new blocks to the chain.

• Cryptographic techniques are used to ensure the integrity of transactions and secure data. 
• Cardano’s blockchain operates on a decentralized network which ensures its security. 

Smart Contracts

Terms of agreements are directly written into the blockchain network code as a result of smart contracts. This means that they automatically run on the network. 

Some of the key features of smart contracts include the following: 

• These contracts eliminate the use of intermediaries which increases efficiency and reduces costs.

• The smart contracts are transparent for all participants of the network. 

• Smart contracts cannot be altered on the blockchain network once it has been deployed.  

These smart contracts can be used in different types of applications such as supply chain management services, financial services, and even legal agreements. 

Decentralized Apps 

These are software applications that run on a blockchain network and can use smart contracts to help improve their functionality. These apps give users control over their assets and data. 

Developers can collaborate and improve the codebase of each app as more of the decentralized apps are open-source. These apps are then able to interact with other blockchain networks. 

Uses of Cardano

Cardano has many uses such as financial applications, supply chain management, identity, governance, education, and social impact. Cardano enables the development of decentralized finance (DeFi) applications which allows users to engage in lending, trading, and borrowing without intermediaries. 

Financial products can be created through the use of smart contract capabilities that are operational on a global scale. The use of ADA can be used for staking, transactions and governance of the platform. 

This blockchain network can be used to identify and secure an immutable record of identities that can help reduce fraud and enhance trust in different sectors such as healthcare and banking. Their governance model allows stakeholders to be able to participate in decision-making processes. 

For supply chain management, Cardano can improve traceability and transparency by recording all records on the blockchain so that goods are tracked from their origin to their destination. This will ensure regulation compliance and authenticity. This is best for industries such as pharmaceuticals and the food industry. 

In the education sector, Cardano can be used to verify academic credentials such as storing certifications and degrees on the blockchain. This will ensure that no records can be tampered with and that employers have verifiable records. It can also streamline the hiring process and ensure that no resume fraud is done. 

Socially, Cardano is used to drive initiatives to promote financial inclusion and help empower communities. This platform can be used to support microfinance projects that will help individuals gain access to resources and capital. 

Advantages of Cardano

Cardano has a unique approach to sustainability, scalability, and community-driven development. Below are some of the advantages of using Cardano. 

Security Features

The platform uses formal methods and peer-reviewed research to ensure that its protocols are secure and robust. It incorporates a mathematically proven framework for consensus known as Ouroboros. 

It also has a multi-layer architecture which adds to the security layers. It does this by isolating the settlement of transactions from the execution of smart contracts and reducing the risk of systemic failure. 

Scalability and Sustainability

The network is able to process transactions and smart contracts independently. This means that Cardano is able to handle a large volume of transactions without compromising its performance. 

Community- Driven Development and Governance

The platform incorporates a strong emphasis on the involvement of its community, such as allowing stakeholders to make their own decisions. Users can vote and propose changes to the protocols for development based on needs. This makes Cardano one of the most respectable blockchains around.