How Does Cardano Work?

Cardano is a decentralized public blockchain-based platform that was one of the first open-source and peer-reviewed networks. Its goal is to provide enhanced features using a scientific and research-based process. Input-Output Hong Kong, led by founder Charles Hoskinson, was one of the numerous co-founders of Ethereum and also worked on Bitshares and Ethereum Classic. They tasked academics and experts from several educational institutions with analyzing Cardano’s protocol early on.

The fundamental goal was to develop a third-generation platform that could facilitate smart contract implementation while also addressing the scale challenges that plagued Bitcoin, a first-generation coin. It’s no surprise that many experts predict Cardano will eventually replace Ethereum, a second-generation coin, if it lives up to its promises. 

The Cardano Settlement Layer (CSL) and the Control Layer, respectively, are used to settle transactions and smart contracts in Cardano. 

The Ouroboros proof-of-stake method is at the heart of Cardano. Cardano’s protocol is less energy-intensive and less expensive than proof-of-work protocols.