What is Cardano?
Cardano is a blockchain platform grounded in scientific research. Unlike many other projects, all changes undergo peer review before being implemented. This makes development slower but aims to increase security.
With the ADA token, users can stake, participate in governance, and use decentralized applications. Key upcoming developments include the Ouroboros Leios upgrade for higher transaction speeds and further development of on-chain governance.
Table of contents
Introduction & Technology
Cardano was developed to address the errors and limitations of earlier blockchains – particularly regarding scalability, security, and energy consumption. Unlike many other projects, Cardano follows a scientific development model, where every change undergoes peer review.
Proof of Stake: Ouroboros
Cardano uses the Ouroboros Proof-of-Stake algorithm: participants stake ADA to secure the network and earn rewards. The protocol has been described and analyzed in academic papers.
Smart Contracts & Plutus
Since the Alonzo upgrade, Cardano supports smart contracts through the Plutus language. It's based on Haskell, allowing for formal verification — but it also comes with a steep learning curve for developers.
Organizations behind Cardano
Cardano is developed by three specialized organizations:
Cardano Foundation: Standards and community building
Input Output Global: Technical development and research
Emurgo: Commercial applications and partnerships
This structure enables parallel work on different areas while governance is gradually transferred to the community.
Development phases & current status
Cardano has structured its development into five phases: Byron (foundations), Shelley (staking), Goguen (smart contracts), Basho (scaling), and Voltaire (governance).
The core functions are already implemented: staking has been running since 2020, smart contracts since 2021. Currently, the team is working on scaling solutions like Hydra State Channels and the Ouroboros Leios upgrade, which should enable parallel block processing. At the same time, on-chain governance is being further developed – ADA holders can already participate in voting through Delegated Representatives (dReps).
Cardano vs. Ethereum
Compared to Ethereum, Cardano has used Proof-of-Stake since launch, while Ethereum only switched in 2022. Cardano's smart contracts are based on the Plutus language (derived from Haskell) rather than the widely used Solidity.
Transaction fees on Cardano tend to be lower and more consistent than on Ethereum, where they can fluctuate dramatically. However, Ethereum has a significantly larger developer ecosystem and more established applications. Cardano's scientific development approach leads to slower but potentially more stable development.
Use cases & ecosystem
Cardano sets itself apart from other blockchains by focusing on solving real-world problems rather than facilitating speculation.
Where is Cardano used today?
Financial Services (DeFi) On Cardano, you can swap tokens, take out loans, or earn interest – similar to a bank but without intermediaries. The fees are significantly lower than on Ethereum.
Digital Identity
Governments and companies use Cardano to store IDs, certificates, or diplomas in a tamper-proof way. The Ethiopian Ministry of Education manages millions of student records this way.NFTs and Digital Art Artists and collectors trade digital artworks and collectibles on Cardano – without the high fees of other platforms.
Staking - Passive Income ADA holders can "stake" their tokens and receive regular rewards – like interest on a savings account, but decentralized and without a bank.
Criticism & Challenges
Despite many technical strengths, Cardano also faces criticism:
Development speed
Slow implementation: The scientific approach often delays features
Complexity: Plutus has a steep learning curve for developers
Market timing: Competitors were often faster with similar features
Adoption & usage
DeFi volume: Significantly lower than Ethereum or Solana
Developer ecosystem: Smaller than established platforms
Network effects: Harder to catch up than competitors
Decentralization
Coordination: IOG still has significant influence on development
Governance: On-chain voting is still relatively new and untested
Validator distribution: Could be more diverse
Price development & outlook
Historical performance
Cardano (ADA) was at times among the top 3 cryptocurrencies by market capitalization and experienced both spectacular rises and significant corrections. Price development followed typical crypto cycles with strong volatility phases.
Long-term price factors
Bullish Drivers:
Possible successful implementation of Ouroboros Leios
Potential growth of the DeFi and NFT ecosystem
Interest from institutional investors in more sustainable blockchains
Development of cross-chain interoperability
Risk Factors:
Intense competition from established Layer-1 blockchains
Development speed might continue to be too slow
Plutus complexity may deter developers
General crypto market cycles and regulatory uncertainties
Future prospects
Further development depends on several uncertain factors: Can Cardano successfully implement its technical promises like Ouroboros Leios? Will it succeed in attracting more developers and users? And how will competition from other Layer-1 blockchains develop?
The scientific approach could become an advantage in a more mature crypto market – or prove too slow for the fast-moving industry.
Conclusion
Cardano takes a different path than most crypto projects: Instead of moving fast and fixing problems later, it follows a research-first approach — developing features only after rigorous peer review.
Scientific foundation: Every major change is reviewed by independent researchers — similar to how medications or aircraft software are validated.
Proof of Stake: Cardano has used Proof-of-Stake from the very beginning, while other blockchains adopted it later.
Application focus: The project emphasizes real-world solutions for governments, universities, and enterprises — not just speculation.
Understanding the trade-offs: This "slow but steady" strategy makes Cardano more stable than many of its competitors, but also less experimental and slower to adopt new features. Whether this methodical approach will succeed in the fast-paced crypto world remains to be seen.
Frequently asked questions about Cardano
What is the current price of Cardano?
The current price of Cardano is $0.84. Over the past 24 hours, the price is up 7.04%, with a trading volume of $56.04B. Cardano is the 11th largest cryptocurrency by market cap, currently at $30.64B.
Is it worth investing in Cardano?
The price change of Cardano (ADA) over one year is currently +123.18%, making Cardano a good investment in hindsight. Whether this trend will continue in the future depends on many external factors such as supply and demand. Past price trends are no indicator of future performance.
Where can I buy Cardano?
The best and most reputable crypto exchanges for buying Cardano include ones such as Kraken and Coinbase. You can find more in our comparison of crypto exchanges.
Which Cardano wallet is the best?
The best hardware wallets for Cardano are Ledger Nano X, BitBox02 and Trezor Model T. In our opinion, the best software wallet for Cardano is the Zengo app. You can find more in our comparison of crypto wallets.
What was the all-time high of Cardano?
The Cardano (ADA) cryptocurrency all-time high is $3.09. This price was reached on Sep 02, 2021. The current price is $0.84, a difference of -72.80% from the all-time high.
Who has invested in Cardano?
Cardano's early investors include institutional investors and venture capitalists (VCs) such as .
How many Cardano (ADA) are currently in circulation?
There are currently 36.54B Cardano (ADA) in circulation. The total amount of ADA in circulation represents all coins and tokens that have already been distributed and are therefore held in the wallets of private individuals, companies or institutions.
What is the Total Value Locked (TVL) of Cardano?
The Total Value Locked of Cardano (ADA) is currently $340.06M. This value includes all assets locked on the blockchain or in DeFi protocols. With a market cap of $30.64B, this results in a ratio of market cap to TVL of 90.1.
How many active addresses (24h) does Cardano have?
As of the last update, Cardano had about 24,379 active addresses (24h) — the number of unique addresses that sent or received a transaction in a rolling 24-hour window (each address counted once). Note: addresses ≠ users (one person or an exchange can control many).
How many transactions per day are running on Cardano?
Cardano currently has an average of around 30,600 transactions per day. This key figure indicates how many network transactions have taken place on average per day in the last 3 months.
