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A Beginners Guide To Cardano Blockchain

Explore the complete guide of cardano blockchain and know its ADA token, Prime features, use cases, etc,

A Beginners Guide To Cardano Blockchain

We have witnessed various blockchain giants like Ethrerum, Binance Smart Chain, Solona, etc, which promise superior features to stand strong in the crypto space but Cardano is different, it promotes academics and drives towards research-based approach. Users and developers felt that its cryptocurrency optimization is more towards scientific research and the code is designed to be verified mathematically.

What is Cardano ?

Cardano is labelled as a third generation blockchain that works on Proof of stake Consensus algorithm which was developed by Input Output Hong Kong (IOHK) in the year 2015 with multiple professionals like Engineers, Scientists, Mathematicians. Cardano aims to move towards the scientific path and is more concerned with key principles like security, scalability and interoperability.

At the time of launch 31 million ADA were minted and nearly 26 million ADA were sold to Japan based companies while the remaining 5 million is distributed among its own organizations.

Now, Cardano is maintained by three organizations. The overall development is divided into various business units there, IOHK is responsible for Cardano Protocol then Cardano foundation handles the project, while EMURGO handles business development and Ethereum Classic Development also involved here

Five Prominent Phases of Cardano

The Five Phases of Cardano provides the road map of Cardano Ecosystem, which are listed below

  • Byron: It is the very first phase involves transferring of ADA
  • Shelley: This phase directed towards decentralization in 2020
  • Goguen: Functional smart contract roll out on this update
  • Basho: It focuses on scalability and interoperability
  • Voltaire: In this phase, the treasury system is incorporated.

Cardano Alanzo

Alanzo is the kind of update on Cardano that leverages the network to work with its full capabilities. It seems as though the major upgrade on Cardano involves smart contract functionality implementation. This upgrade lets anyone create and deploy their own smart contract on cardano. There is no specified end date for Alonzo update. 

Stages of Alonzo

Alonzo update is divided into three phases

  • Alonzo Blue
  • Alonzo White
  • Alonzo Purple

Alonzo Blue : It launches smart contracts with 50 technical participants 

Alonzo white: Alonzo white is designed to provide more features to Alonzo

Alonzo Purple: It is a entirely public testnet with 1000 participants to the network

How Does Cardano (ADA) Work ?

Cardano works to sort out the scalability issues associated with the first generation blockchain. All suffer from bottlenecks which fundamentally reduces the whole throughput. The prime issue here is that, It tends to degrade the capable potential of the system,i.e, it drastically reduces the volume of transactions thus preventing the mass adoption. Ouroboros, the significant Proof of Stake (POS) mechanism reduces the energy cost. Cardano's 2nd layer provides scalability solutions. The idea is that the throughput increases every time with the addition of a new node. 

Cardano is divided into two layers and three nodes

Layers of Cardano

The Cardano Settlement Layer (CSL): This segment is used to transfer ADA and to record transactions.

The Cardano Computation Layer (CCL): It has smart contract logic to move funds programmatically.

Nodes of Cardano:

mCore nodes: Blockchain governance and ADA staking
Relay nodes: Transfer data between mCore and public internet
Edge nodes: Responsible for all Crypto Transactions

What is Ouroboros?

Orobouros, the kind of Proof-Of-Stake consensus algorithm runs on the cardano software that validates transactions, minted ADAs and promotes network security.It is divided into epochs and slots.

epochs are categorized as time frames whereas slots are sections of increments within epochs. Slot leaders are the responsible persons for the addition of blocks 

Ouroboros Promotes Two Types of Blocks

Genesis Blocks: It holds the series of main blocks and displays the lists of slot leaders
Main Blocks: It stores information like transaction information, software updates

In this approach, the previous slot leaders choose the slot leaders for next epoch

Prime Features of Cardano

  • As mentioned earlier, more towards academic and scientific research
  • Cardano holds well planned roadmap with futuristic view
  • Provides Ultra security, scalability and effective interoperability
  • They have planned to implement scalable smart contract
  • Cardano aims to acts as a foundation for crypto applications
  • Cardano is energy efficient which consumes 6 giga watt hour where BTC and ETH consumes 150 and 50 Gigawatt hours

What is Cardano Token?

ADA is the native token of cardano which was distributed in ICO that has raised upto 62 million dollars. ADA holders can stake ADA in stake pools and can earn rewards

To Store ADA, one can use desktop software wallet as well as light wallet

A desktop software wallet developed by IOHK can store ADA, meaning that it can download full cardano blockchain. 

Light wallet does not require full download of blockchain. Some cold wallets like ledger, Trezor and Adalite are capable of storing ADA

Primary Use Cases Of Cardano

Cardano's eco friendly nature inspires many industries around the globe and so it has wide range of use cases

One real world example is that, cardano blockchain partnership with Ethiopian ministry of education and store the data of five million Ethiopian students from their primary education to achievements 

It has wide usage on

Health Care: Thus cardano blockchain can store the data of patients health records with pharmaceutical products 
Finance: The use of blockchain in Finance involves record of identities of people with all their financial transactions
Agriculture: Cardano can be used in Agriculture by supporting effective tracking of framers, merchants in supply chain

Know More: Cardano NFT Marketplace Development

Cardano Blockchain Development

Bitdeal - Blockchain Development Company who provides A to Z services and solutions related to blockchain technology. We have pools of Blockchain experts who keenly observe each new innovation and networks in the blockchain industry & adopt those into our service lines. On that list, as Cardano blockchain network is playing a vital role in recent days, we offer solutions on Cardano blockchain. We look at the possibilities and develop dapps, or any other platforms on Cardano based on your business requirement. We also provide custom Cardano Blockchain Development for any kind of business or industry verticals.


Cardano shines uniquely in the crypto world with its eco-friendly nature and its keen scientific approach. Hope it would open up the door wider and bring blockchain more accessible to all the use cases.

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