Shaped by a decentralised system and built on blockchain technology, the cryptocurrency market is evolving rapidly. As blockchain is most noteworthy in its use with digital assets, an advanced blockchain platform plays a crucial role for the consistent growth of the industry.
Being an immutable ledger, blockchain facilitates the process of recording transactions and tracking assets. Ethereum is one of the biggest blockchain platforms but with growing popularity of crypto projects, it started facing massive congestion which resulted in high gas fees. This delay in transaction processing and the high fees have impacted the user experience.
To solve these issues, Charles Hoskinson (among Ethereum co-founders) in 2017 launched the “Ethereum Killer” blockchain named Cardano. It was developed to provide services for smart contracts, decentralised applications (dApps), and many more.
In this article, we will cover the basics of Cardano blockchain, its origin and working along with technological edge. Also, we will learn about how to buy Cardano tokens and its futuristic aspects.
What is Cardano?
Cardano is a platform launched to support the growing demand for blockchain technology. It is a third-generation blockchain platform designed to increase the scalability and sustainability of the blockchain space.
It is an energy-efficient blockchain as it uses a proof-of-stake (POS) mechanism as compared to Bitcoin’s proof-of-work (POW) tool. ADA, native currency Cardano, performs various functions effectively.
How does Cardano Work?
Cardano, a decentralised platform, works on a two-layer system to boost the security and scalability of the blockchain. The first layer of Cardano is known as Cardano Settlement Layer (CSL) which manages ADA token transactions and also ensures efficient value transfers between users.
The second layer is Cardano Computation Layer (CCL), used to run smart contracts and to support decentralised applications (dApps). This two-layer system helps to provide independent updates and improvements in the blockchain ecosystem.
Cardano uses a POS mechanism called Ouroboros, that selects validators based on the amount of ADA they hold and are willing to stake. Additionally, Cardano’s development is grounded in peer-reviewed academic research which ensures that its protocol and systems are built on scientifically validated foundations.
Origin and Vision of Cardano
The development of Cardano began in 2015 by Charles Hoskinson and Jeremy Wood. Their main aim behind creating the blockchain is to build a more secure and scalable blockchain platform and solve the problems they have noticed with the functionality of Ethereum blockchain. In 2017, Cardano’s Mainnet was launched with a native token ADA.
The initial phase of Cardano is known as the Byron era, focused on establishing the basic structure of Cardano and enabling ADA transactions. Other phases of the blockchain include Shelly and Goguen that introduced features like staking and smart contract functionality. Cardano’s development is structured into five phases: Byron, Shelley, Goguen, Basho, and Voltaire. Each era pays attention to different aspects that work on Cardano’s advancement.
Why is Cardano Popular?
After Ethereum and Solana, Cardano is the most popular blockchain platform owing to its unique approach towards blockchain technology that emphasises scalability, security and sustainability. Cardano is also popular because of its energy-efficient mechanism- Ouroboros, which has reduced electricity consumption exponentially as compared to Bitcoin’s consensus mechanism. .
Further, Cardano has a distinctive programming language, Haskell, which ensures high security and precision in the development of smart contracts. By utilising formal verification methods, Cardano also helps developers create decentralised applications to reduce vulnerabilities.
Cardano’s Technological Edge
Hydra Layer-2 Solution
Hydra is an imperative upgrade of the Cardano platform to deal with Layer-2 scaling. It is designed to enhance transaction processing capabilities and aims to increase throughput and reach a million transactions per second mark. The improvements introduced by Hydra will support the efficient operation of complex decentralised applications and smart contracts on the Cardano network.

Vasil Upgrade
The Vasil upgrade officially went live in September 2022. It is a hard fork upgrade, designed to improve Cardano’s performance and for capability enhancement. This upgrade also aims at the network’s scalability and efficiency that reduces transaction size and costs on the platform.

Difference between Cardano and Ethereum
Cardano and Ethereum are two important blockchain platforms with key features. Cardano was founded in 2017 by Charles Hoskinson and uses a PoS mechanism. In 2014, Vitalik Buterin and other co-founders, launched Ethereum. It used the proof-of-work (PoW) mechanism but after the “Merge” upgrade in 2022, it has shifted to proof-of-stake (PoS).
Cardano uses a two-layer architecture: the Cardano Settlement Layer for transactions and the Cardano Computation Layer for smart contracts for better functioning. In contrast, Ethereum uses a single-layer architecture.
Developers on Cardano use Haskell which is a mathematically precise language, while Ethereum depends on Solidity which is specifically designed for smart contracts.
ADA Coin and its Utility
The native cryptocurrency of Cardano, ADA, stands at a market capitalisation of $34 Billion. ADA is primarily used to pay for transaction fees and also enables seamless transfers of value across the network. Holders of ADA coins can participate in the network’s proof-of-stake consensus mechanism by staking their tokens and earning rewards.
The utility of ADA is beyond transactions and staking and essential for Cardano’s governance. Token holders have the power to vote on protocol upgrades and project funding initiatives which ensure a decentralised decision-making process.
ADA is also an integral part for the execution of smart contracts and the deployment of dApps on the platform. This functionality helps a wide range of applications that include financial services, gaming, art, and supply chain management.

How to Buy ADA Token?
- Select Cryptocurrency Exchange: Select one of the major crypto exchanges that support ADA, such as Binance, Coinbase, or Kraken.
- Create Account: Register on the platform you choose by providing the necessary personal information and complete identity verification.
- Deposit Funds: Add funds to your account through payment methods like bank transfers, credit/debit cards, or other cryptocurrencies.
- Purchase ADA: Go to the trading section of the exchange, search for ADA token and then place a buy order.
- Secure Your ADA: Transfer your ADA tokens to your personal crypto wallet for enhanced security.
Futuristic Aspects of Cardano
Financial Inclusion
Cardano is set to allow unbanked groups to access and use financial services with the use of its unrelenting promotion of blockchain technology. What further stands out is the fact that the company does this without the need of any intermediary or middleman.
Decentralised Governance
Cardano has set out to build a completely decentralised governance structure with the intention of allowing holders of ADA to directly participate in the governance process and propose changes on the blockchain network.
Global Interoperability
Cardano’s layered architecture allows it to integrate with other blockchains using interoperability protocols, sidechains and blockchain bridges. This showcases Cardano’s emphasis on cross-chain compatibility.
Increased Adoption of Decentralised Applications
When it comes to dApps’ adoption, the platform ranks amon the top cand is increasing exponentially. With the evolution of Cardano blockchain and upgrades like Hydra and Vasil, the broader spectrum of dApps from DeFi to diverse gaming will grow even further.
Conclusion
Cardano is one of the leading blockchain in the crypto space that developed itself in a way to solve the problem of scalability, security, and sustainability in the blockchain ecosystem. It uses the PoS mechanism and a two-layer system that will ensure efficient transactions, smart contract execution, and decentralised application support.
Cardano’s recent upgrades like Hydra and Vasil have also enhanced Cardano’s capabilities which helps to handle a number of transactions and support complex dApps. Cardano’s emphasis on decentralised governance and global interoperability makes it an attractive blockchain platform.
At the time of writing, Cardano is trading at $0.97.