Cardano

Cardano (ADA) is a proof-of-stake smart-contract platform built on peer-reviewed academic research. Its native token, ADA, is used to send value, pay transaction fees, stake for network security, and vote on governance. Cardano's distinguishing trait is its methodical, science-first development, where major upgrades are formally reviewed before deployment.

What is Cardano?

Cardano is a Layer 1 blockchain designed to run smart contracts and decentralized applications using far less energy than Proof of Work chains. Founded in 2017 by Charles Hoskinson, a co-founder of Ethereum, it is developed by Input Output Global (IOG). What sets it apart is process: every significant feature is peer-reviewed by scientists and cryptographers before it ships, an approach intended to prioritize security and stability over raw speed.

How does Cardano work?

Cardano secures its network with the Ouroboros proof-of-stake protocol. Instead of miners competing to solve puzzles, ADA holders stake their tokens to become or delegate to validators, who are selected based on the amount and duration of their stake and rewarded in ADA. The platform uses a two-layer architecture that separates the settlement layer for payments from the computation layer for smart contracts, letting each be optimized independently for performance and flexibility.

Cardano tokenomics and supply

ADA has a fixed maximum supply of 45 billion tokens, of which roughly 37.3 billion are in circulation. New ADA enters the market through staking rewards drawn from a reserve, gradually approaching the cap over time. Because a large share of supply is staked, the effective liquid float is smaller than the headline number, and holders are incentivized to participate in securing the network.

• Consensus: Ouroboros proof of stake
• Architecture: separate settlement and computation layers
• Supply: capped at 45 billion ADA, about 37.3 billion circulating
• Governance: ADA holders vote on network changes

What is Cardano used for?

ADA is used to pay fees, stake for rewards, and vote in on-chain governance. The broader Cardano ecosystem supports decentralized applications, tokens, and services such as low-cost international transfers. Staking is a central use case: holders can lock ADA to help secure the chain and earn rewards without giving up custody.

Where to buy Cardano

ADA is widely listed and highly liquid across the market. Compare fees, security, and staking support in our best crypto exchanges ranking. For self-custody and native staking, our best crypto wallets guide highlights wallets that support ADA delegation, letting you earn rewards while retaining control of your keys.

Is Cardano a good investment?

Cardano is an established large-cap asset, but it remains volatile, having ranged from an all-time high near $3.09 to lows around $0.019. Its deliberate development pace is a strength for reliability but has drawn criticism over the speed of ecosystem growth. Staking yields carry their own considerations. Weigh the fundamentals against the risks, do your own research, and remember this is not financial advice.