Cardano’s native token is ADA, and it’s used to pay for transactions on the network.It’s actually named after Ada Lovelace, who’s a 19th-century mathematician and the first computer programmer.The total supply of the token is 45 billion, and around 35 billion of those are in circulation right now.Any native token needs a good chain to run on, so what exactly does the tech behind the Cardano network look like? Cardano is split into two layers.The first is called the Settlement Layer.It keeps track of all account balances and how many tokens they have, including ADA.Basically, this layer is Cardano’s decentralized ledger.
The second layer is called the Computation Layer, and it’s where all the computation and calculations behind transfers happen.
It’s also where smart contracts run on the Cardano network.By splitting its network into two parts, Cardano allows people to continue transferring tokens And settling payments even as the Computation Layer is being upgraded.We’ve already seen several of these upgrades, like the Alonzo hard fork that brought smart contract functionality to Cardano back in September 2021.Smart contracts on Cardano use a programming language called Plutus.
It’s a functional programming language, which means it’s fully based on functions that always stay the same and provide the same output given a certain input.So why is that important? Well, if you’re writing a smart contract in Plutus, it’s easier to test because it will always run the same.You’re not writing code that can change state, and because of that, Plutus smart contracts are generally more bug-free and less prone to weird hacks that happen because of loopholes in the code.That sounds like exactly what you need if you’re writing dApps that handle billions of dollars! Cardano achieves consensus with its own proof-of-stake consensus mechanism called Ouroboros.
It allows people to earn rewards in two ways by helping secure Cardano, either by running their own stake pool or by delegating their stake to an existing stake pool.It essentially works the same way as other proof-of-stake chains.If you don’t have the resources to run your own validator, you can just delegate your stake to another validator to help secure the network and still earn rewards.Pro tip: you can easily stake Cardano with Exodus.There’s a few things about staking with Cardano that make it different than other chains.
First there’s no lock out period.When you stake, you are actually staking your Cardano address.All the ADA tokens located at your address are considered staked.And with no lockout period, you’re free to continue transacting with your tokens.When it’s time to distribute your rewards, a snapshot will be taken and your ADA balance at that time will be used to calculate your rewards.There’s also no risk of slashing.Normal proof-of-stake chains discourage malicious validators from messing with the chain by punishment through something called slashing.
If a malicious validator tries to publish a fake block, part of their stake is slashed and lost forever.Cardano’s consensus mechanism works without any punishment, so there’s no risk of your stake being slashed.Instead of discouraging bad behavior through punishments, Cardano uses game theory and Math-based models to ensure honest actors are rewarded properly while dishonest ones gain nothing.That’s pretty much a general overview of the tech behind Cardano.The thriving ecosystem that makes use of this tech began to form after Cardano added support for smart contracts.Since then, we’ve seen NFT projects launch on Cardano, and the platform now has its fair share of DEXs, lending protocols, and other DeFi apps.The smart contract scene on Cardano is still new, and the chain is under heavy development.
Its future is mainly focused on two things: governance and scaling.
The Cardano team is working on making the chain self-sustaining by introducing a decentralized voting and treasury system, which will leave control of Cardano in the hands of the community.What is Cardano Crypto? Cardano ADA explained in simple terms.The Cardano cryptocurrency ADA is a top crypto asset by marketcap despite it not yet having the massive Web3 presence that networks like Ethereum, Solana, and BNB chain have built.This video gets into the nuts and bolts of the Cardano tech.00:00 intro 00:22 ADA Token & Cardano’s 2 Layers 01:37 Smart Contracts & Plutus language 02:14 Ouroboros & PoS rules on Cardano 03:49 Cardano’s Future & Growth ★☆★Download Exodus for Mobile, and Desktop★☆★ https://www.exodus.com/download 🔔★Subscribe for more videos @exodus ★🔔 https://youtube.com/c/exodus?sub_confirmation=1 🔔☆Get crypto knowledge in the free Exodus Newsletter☆🔔 https://www.exodus.com/newsletter/ Exodus was created for visionaries looking to depart the traditional financial system.★Follow Exodus★ Twitter: https://twitter.com/exodus_io Reddit: https://www.reddit.com/r/ExodusWallet/ Discord: https://discord.com/invite/exodus This content is for informational purposes only and is not investment advice.
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