1. Cardano blockchain platform
Cardano is a blockchain platform with more advanced features than any protocol yet developed and is the first to be developed from scientific principles. The Cardano project was developed by IOHK, an IT company based in Hong Kong. The company was founded in 2015 by two heavyweights: Charles Hoskinson and Jeremy Wood, both former core members of Ethereum. It has a large team of experts and experts from Researchers around the world started by deconstructing the concept of cryptocurrency. The IOHK team built Cardano from the ground up using a first-principles approach driven by peer-reviewed academic research, incorporating the proof-of-stake algorithm Ouroboros. This unique collaborative effort steadily builds a precise cryptocurrency that brings together disciplines such as distributed systems , mechanism design, and cryptography. Cardano is the first cryptocurrency based on Haskell code, an industrial-strength product that provides the resiliency necessary for mission-critical systems. The Cardano blockchain platform uses ADA to process transactions.
Cardano aims to be a DApp development platform with a multi-asset ledger and verifiable smart contracts, and enables cross-chain transfer of assets through sidechains (transactions are conducted off-chain). In addition, Cardano is exploring how to enable institutions and individuals to selectively provide transaction and identity-related metadata so that cryptocurrencies can be used in daily transactions. Cardano's primary use case is as a cryptocurrency, and its native token ADA is part of Cardano's settlement layer. Cardano is often referred to as the "Japanese version of Ethereum," and in 2022 there were reports that Cardano was available through ATMs and debit cards in Japan.
二、ADA
(1) Project background and ADA issuance
ADA is the native token on the Cardano blockchain and was launched in 2017. Founder Charles said that ADA is the third generation of cryptocurrency. The first generation is Bitcoin and the second generation is Ethereum. Cardano aims to solve all the problems existing with Bitcoin and Ethereum, using a two-layer chain to perform on-chain transactions.
ADA, known as ADAcoin in Chinese, is a cryptocurrency that runs on the Cardano blockchain platform and is developed based on the proof-of-stake algorithm Ouroboros. Despite the similarities between Bitcoin and Cardano SL, there are also many differences between the two cryptocurrencies. From the perspective of consensus mechanism, Bitcoin is a proof-of-work type cryptocurrency, while Cardano SL utilizes a proof-of-stake method to achieve consensus. The total number of ADA coins is 45 billion, and 30 billion ADA coins will be invested during the pre-sale period, of which 25 billion will be used for the Initial Coin Offering (ICO), and the remaining 5 billion will be used for financial support of the development company’s operating company. Because the total number is 45 billion, there are still 15 billion ADA coins remaining, and this part will be continuously distributed. Block rewards will be issued every 3.5 minutes. The issuance frequency is as follows: initially, each block will generate 2,000 ADA coins, totaling 3,744,961 blocks; in the second phase, each block will generate 1,000 ADA coins, totaling 3,744,961 blocks. blocks; in the third phase, each block generates 500 ADA coins, totaling 3,744,961 blocks.
(2) Technical framework
Cardano is a platform-based public chain that will be able to run the financial applications currently used every day by individuals, organizations and governments around the world. At the same time, ADA also plans to provide platform and technical support for distributed applications, and also provides a separate computing layer to maintain and support smart contract functions.
The biggest feature of the Cardano project is the use of layered technology, which is divided into a settlement layer and a computing layer. These two layers can be simply understood as two completely different chains. The settlement layer is similar to an "improved version of Bitcoin", mainly realizing value transfer through token ADA; the computing layer is similar to an "improved version of Ethereum", mainly providing computing support and processing smart contracts.
Cardano's settlement layer and computing layer run separately, allowing targeted deployment and upgrades for different layers. For the settlement layer, problems encountered in digital currency transactions can be upgraded and replaced through soft forks, while for the computing layer, targeted expansion and improvement can be carried out according to the operational needs of DAPPS. Therefore, the layered approach achieves the establishment of a clear and bounded system operating order within an ecosystem, achieving better scalability and interactivity.
Cardano Staking
According to Cardano’s official website, ADA cannot be obtained through mining like other cryptocurrencies and can only be purchased through cryptocurrency exchanges such as Gate.io. In Cardano’s PoS system, stake determines a node’s ability to create blocks on the blockchain. A node's equity is equal to the amount of ADA it holds long-term. Holders cannot use or spend staked ADA because it has been used as collateral for verification actions. Users who stake ADA will be rewarded with transaction fees. Rewards are distributed based on the amount of ADA staked by users.
The ADA held on the Cardano network represents the equity in the network, and the size of the equity is proportional to the amount of ADA held. The ability to delegate or stake stake is critical to the operation of Cardano.
ADA holders can earn rewards in two ways: by delegating their stake to a stake pool run by others, or by running their own stake pool. The amount of stake delegated to a given stake pool is the main way the Ouroboros protocol uses to select which node will add the next block, and the selected node can be rewarded with tokens.
The more stake you delegate to a stake pool (with a maximum delegation limit), the greater the chance of being selected to be added to the next block. All participants who delegate their stake to the stake pool share the rewards.
What is equity delegation?
Delegation is the process by which ADA holders entrust the rights and interests related to their ADA to the equity pool, so that ADA holders who do not have the corresponding capabilities but want to run nodes can also participate in the network and be able to participate in the network according to the delegated The amount of equity is rewarded.
(3) Characteristics of Cardano and ADA
Haskell is a special programming language that ensures better protection of assets and users’ sensitive data.
Hoskinson claims that Cardano is 1.6 million times more energy efficient than Bitcoin.
Cardano was created to be highly scalable; it can process transactions much faster than both Bitcoin and Ethereum 1.0 (also known as Ethereum Classic). Currently, Cardano can handle more than 250 transactions per second.
The proof-of-stake model allows Cardano to charge only a small transaction fee on its network.
Cardano is environmentally friendly. Compared with proof-of-work blockchains such as Bitcoin and Ethereum, which consume a lot of electricity, the proof-of-stake used by Cardano consumes 99% less power.
Every Cardano holder has the opportunity to earn passive income by staking ADA tokens. The method is simple, just purchase ADA tokens and lock them in the wallet.
Cardano’s two-layer core architecture makes its mining process more efficient than other cryptocurrencies.
Cardano is competing with Ethereum for market share (although Cardano is only one percent the size of Ethereum). Its other strong rival is Solana, which is larger and growing faster.
While lower prices are an advantage, they also mean less demand for cyberspace. This may change with the introduction of smart contracts, which require more storage space rather than more payments.
If the stake pool's server goes down during the scheduled block generation time, the rewards are lost.
source:
Cardano_Baidu Encyclopedia (baidu.com) 
https://baike.baidu.com/item/%E8%89%BE%E8%BE%BE%E5%B8%81/22416034?fr=aladdinWhat is Cardano ? Understand ADA tokens in one article » Tiantian Kuji (hellocoding.org.cn) https://hellocoding.org.cn/%E4%BB%80%E4%B9%88%E6%98%AFcardano%EF%BC%9F %E4%B8%80%E6%96%87%E8%AF%BB%E6%87%82ada%E4%BB%A3%E5%B8%81/
Further reading: