Cardano (ADA): The Third-Generation Platform

Cardano is a decentralized third-generation blockchain based on the PoS algorithm introduced as a modification to PoW networks and works with ADA tokens. In this type of network, scalability, interoperability, and sustainability are improved compared to PoW networks. It is known as a new token type by reducing transaction prices, increasing transaction speed, and reducing energy consumption.

Cardano was launched in 2015 by Charles Hoskinson, one of the founders of Atrium Blockchain. Cardano platform works with ADA token, which is the leading coin, Cardano blockchain was introduced in 2015, and ADA token was introduced in 2017.

You can also read: All you should know about StormX (STMX)

The Cardano platform and the ADA token are implemented on the Ouroboros consensus protocol. Ouroboros is the first highly secure PoS protocol and the first platform in this area to be developed based on academic research. Each development phase in Cardano has a research framework and provides documented methods for implementing the related phases and advancing to the following stages. The ADA token mechanism and the Cardano platform are directly related to this type of research in each development phase.

How does ADA work?

Cardano’s support structure offers three separate products. Atala PRISM, Ataka SCAN and Atala Trace. The first product is known as a tool for identity management and creating the necessary access to the service. For example, this application can be used to confirm credentials to create a bank account or government aid. The other two products are asset tracking in a supply chain.

Blockchain Cardano and ADA Token implement a smart contract that can provide a secure and robust platform for high-level decentralized application development. In Cardano, a democratic chain management system called project Catalyst was implemented to develop and implement projects.

At the core of any blockchain is an algorithm for building blocks and verifying transactions. Cardano uses Ouroboros as the PoS algorithm to extract the blocks. This protocol is optimized to reduce the amount of energy when producing a block. In a pOS-based extraction system, the need for hash power or powerful computing resources is eliminated for further optimization.

Stacking in Cardano with ADA tokens is done by defining the ability of a node to build a block. Each node stake is equal to the amount of ADA that has been available to that node for a long time.

How Ouroboros Works

Ouroboros protocol has a structure to facilitate transactions in the Cardano blockchain. This protocol divides physical time into smaller parts, each of which has a fixed time. Slots are exactly like shifts in a factory. Each epoch lasts about five days, and each slot is 1 second, but these numbers are also changeable and may change with each update.

Each slot has a slot leader determined by the lottery system. In this process, the more stakes there are, the better the chances of winning the lottery. Each slot leader has responsibilities:

• Confirm the transaction
• Build a transaction block
• Add new blocks to the Cardano blockchain.

Main features of ADA

One of the main capabilities of ADA on the Cardano platform is identity management and traceability. First- and second-generation applications were used to simplify processes and required collecting information from different sources. The third generation is for tracking the production process from beginning to end and removing counterfeit goods from the market.

The development of the Cardano protocol with the ADA token is based on the decentralized and conscientious processes provided by the Partners. These partners include Cardano foundation, IHOK, and EMURGO. The Cardano Foundation is a not-for-profit group tasked with overseeing the Cardano brand and ADA tokens. Foundation Increases protocol transparency globally marks use-case situations and connects policymakers and regulators.

IOHK, on ​​the other hand, is a software development company tasked with building Cardano and ADA based on blockchain research. The company has worked with academic partners to increase the scalability of the Cardano core protocol using scientific research. EMURGO is also a technology platform and the core business of the Cardano Protocol, which is tasked with integrating the business with other segments in the blockchain.

Cardano Development Phases

Cardano was developed in five different phases to achieve specific goals. In this platform, the main goal was to develop a network based on decentralized applications with multi-asset ledgers and verifiable intelligent contracts. A particular era marks all five phases of development.

• Foundation (Byron era)
• Decentralization (Shelley era)
• Smart Contracts (Goguen era)
• Scaling (Basho era)
• Governance (Voltaire era)

Conclusion

The Cardano platform is a third-generation system based on the PoS algorithm that works with the ADA core token. Third-generation platforms have tried to increase scalability and speed up transactions. Accordingly, ADA is in new generation decentralized applications with specific applications. The Cardano platform has been developed in different phases and different ways.