Menu Close

How Does the Cardano Blockchain Work?


One of the recent developments is the sudden surge of Cardano and its currency, Ada, which became a central interest of traders this past summer. However, not all are acquainted with this new blockchain and how it works? How Ada became the third latest cryptocurrency?

Recently, the crypto market is quiet after a slow decline in the past few years due to the sudden loss of interest from finance enthusiasts because of the volatility of the crypto market. However, lately the cryptocurrencies are slowly making noise again.

What is Cardano?

Like Ethereum, Cardano is a decentralized blockchain program that was inaugurated in 2017 and is pioneered by Charles Hoskinson, the co-founder of Ethereum. The main goal of this platform is to become a self-sustained and scalable blockchain platform, which mostly deviates from the reliance of other energy-consuming crypto miners.


What is Ada?

It is the cryptocurrency or digital money that runs on the Cardano blockchain platform. It is named after Ada Lovelace, who is a mid century mathematician who is also deemed as the first computer programmer. 

Why was Cardano invented?

Cardano is an open-source blockchain network and it is made up of layers that were designed to run on financial applications that are utilized by companies, customers, governments and online casinos like 12Play.

The project is regarded as the only one that is geared towards a more scientific approach when it comes to the development of the blockchain. The project is overseen by several teams of academics, engineers and other experts to ensure that the platform works in financial applications and can provide secure, scalable and solid transactions. 

How does it work?

Cardano’s technological model sets it apart from other blockchain platforms. It is composed of two layers, the first one is already completed and it can allow Ada tokens to be sent and received from wallet to wallet. The second layer is still under development and its objective is to allow users to make advanced transactions by signing up on smart contracts.

What are the benefits of Cardano?

Layered Blockchain

The platform works in two separate layers with one dedicated for token processing while the other is for smart contracts. This separation allows the platform to be updated without affecting the other part. 

More Adaptable

In comparison with the other blockchains, Cardano is pretty adaptable. A single smart contract for example can be changed to accommodate different users while still aligned to the models of stakeholders.


Cardano is pretty decentralised like other main blockchain platforms existing right now. What this means is that there is no central authority or central bank that has a power or control over the processes of the cryptocurrency.

Improved Financial Freedom

The backbone principle of this blockchain platform is to integrate the consumer’s comfort and compliance with regulations into a smooth solution that can accommodate millions of users who don’t have an access to traditional services to have financial freedom.

Partnering With Regulators

The platform is continuing to collaborate with the regulators to innovate the technology behind Cardano. The partnership’s goal is to provide solutions to make the transactions in online games seamless.

Can it be used anonymously?

Contrary to popular belief, anonymity is not necessarily the strongest feature of cryptocurrencies. In fact, buying coins from a trading platform still has to comply with the Know Your Customer policy which requires users to provide their personal details from account verification.

 If you are seeking to do a financial transaction anonymously, physical cash is still recommended as it does not leave a digital trail. 


Cardano is the first cryptocurrency that is supported and developed using a more scientific way to be more effective. This ensures that the platform could be successful and initial problems that are facing by the earlier cryptocurrencies could be easily solved.