Cardano

Cardano is a Layer 1 smart-contract platform built on peer-reviewed academic research. It was founded in 2017 by Charles Hoskinson, who previously co-created Ethereum, and is maintained by Input Output Global (IOG). The network uses the proof-of-stake Ouroboros consensus protocol, which selects validators based on how much ADA they have staked and for how long, rewarding them with newly minted ADA.

The platform separates its core functions into two layers: a settlement layer for ADA transfers and a computation layer for smart contracts. This design lets each layer evolve independently, aiming to keep simple payments fast and cheap even when dapp activity spikes. ADA, the native token, is used for transaction fees, staking, and on-chain governance votes.

Instead of miners competing on energy-intensive puzzles, Cardano runs on a proof-of-stake system where ADA holders delegate their tokens to stake pools. The protocol picks slot leaders from these pools to produce blocks, with selection probability weighted by the amount and age of the stake. This keeps energy consumption far below proof-of-work chains while maintaining security through economic incentives.

Governance and development are split across three entities. IOG handles core protocol engineering, the Cardano Foundation drives adoption and regulatory standards, and Emurgo focuses on commercial integrations. The network’s upgrade path follows a formal process: proposed changes are written as academic papers, peer-reviewed, and only then implemented, which the team argues reduces the risk of hasty, under-tested code reaching mainnet.

Cardano’s defining differentiator is its insistence on formal academic review for every major protocol change. While most L1s ship features quickly and iterate in production, Cardano requires peer-reviewed papers before code reaches mainnet. This appeals to enterprises and governments that prioritise auditability and long-term stability over raw speed.

A two-layer architecture further separates it from monolithic chains. By decoupling settlement from computation, Cardano can upgrade its smart-contract engine without disrupting base-layer payments, a flexibility that becomes more valuable as transaction volumes grow.

“Every major feature is peer-reviewed by scientists and cryptographers before being added to the network — a process that aims to create a more secure and stable foundation compared to platforms that prioritise speed over thorough testing.”