What is Cardano (ADA)?

Deep Dive

1. Technology & Architecture

Cardano uses Ouroboros, the first peer-reviewed proof-of-stake protocol, split into two layers:
- Settlement Layer handles ADA transactions
- Computation Layer executes smart contracts via Plutus (Haskell-based) and Marlowe (financial contracts)

Its Extended UTXO model improves predictability over Ethereum’s account-based system – users know transaction fees upfront (Cardano Developer Portal).

2. Key Differentiators

• Native assets: Tokens operate at the protocol level (like ADA), reducing complexity and gas fees vs. ERC-20 standards
• Hydra scaling: Layer-2 solution processes 1M+ transactions per second per "head" (modular sub-networks)
• Formal verification: Critical components use mathematically proven code to minimize vulnerabilities

3. Governance & Sustainability

A decentralized treasury (funded by transaction fees/new ADA) lets stakeholders vote on proposals via Project Catalyst. Over $1B in ADA has been allocated to ecosystem projects since 2021 (CoinMarketCap).

Conclusion

Cardano combines academic rigor with modular design to address blockchain’s “trilemma” of security, scalability, and decentralization. Its focus on verifiable systems and community-led governance positions it for enterprise adoption. How might its layered approach influence regulatory acceptance compared to rivals?