What is Cardano and how does it work? A guide to ADA cryptocurrency

  • 📰 TheBlock__
  • ⏱ Reading Time:
  • 60 sec. here
  • 2 min. at publisher
  • 📊 Qulity Score:
  • News: 27%
  • Publisher: 53%

A detailed look at the blockchain project Cardano, its cryptocurrency ADA and the way that it has been designed.

United States News, United States Headlines

With a market capitalization over $10 billion, Cardano is one of the biggest blockchains utilizing the proof-of-stake mechanism to serve as the infrastructure for decentralized applications.

Cardano’s consensus mechanism, known as Ouroboros, is a proof-of-stake system, which is fundamentally different from the proof-of-work systems found in cryptocurrencies like Bitcoin. In proof of stake, the creation of new blocks is performed by validators who are chosen based on the number of coins they are willing to “stake” as collateral. Essentially, ADA holders can participate in staking to help validate transactions, add new blocks to the blockchain, and thereby keep the network secure.

The Shelley upgrade followed in mid-2020, decentralizing network consensus. This update transitioned the network to a state where most nodes were operated by the community rather than a centralized entity. The election of slot leaders is a key aspect of the Ouroboros protocol. The more ADA an account has staked, the higher the chance that it will be chosen as a slot leader. This system of proportional election aims to ensure a more democratic and decentralized mechanism of transaction validation. Ouroboros also incorporates multi-party computation to ensure that the election of slot leaders is both random and secure, eliminating any predictable patterns that could be exploited.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:


Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Cardano (ADA) Forms Unexpected Support Amid 13% Price JumpCardano (ADA) defies gravity with 13% surge as development efforts start paying off
Source: Utoday_en - 🏆 295. / 63 Read more »

Cardano (ADA) Introduces Partner Chains, Here's Why It MattersThis latest Cardano (ADA) innovation might be game-changer
Source: Utoday_en - 🏆 295. / 63 Read more »

Cardano (ADA) Announces New Partnership, Everlodge (ELDG) and Solana (SOL) Bull Run ContinuesCrypto Blog
Source: Crypto_Potato - 🏆 568. / 51 Read more »

Cardano (ADA) Dominance Rising: Will This Mark Long-Term Reversal?Cardano shows unseen level of dominance in crypto market's top 10
Source: Utoday_en - 🏆 295. / 63 Read more »

Cardano price suffers decline with rising whale activity, ADA holders remain optimisticCardano, one of the largest competitors of the Ethereum network and a Layer 1 blockchain network, suffered a pullback after posting 12% weekly gains.
Source: FXStreetNews - 🏆 14. / 72 Read more »

XRP Eyes Potential Price Rally Amid Ripple Event, Similar to Solana (SOL) and CardanoIn wake of Solana and Cardano's recent successes, XRP stands poised for substantial price rally, driven by highly anticipated Ripple event in Dubai
Source: Utoday_en - 🏆 295. / 63 Read more »