How does Cardano work?

Cardano is a decentralized public blockchain and cryptocurrency project that is fully open source.

It is the first blockchain platform to evolve out of a scientific philosophy and a research-first driven approach. The development team consists of a large global collective of expert engineers and researchers. Cardano works by using a layered architecture that separates the ledger of account values from the reason why values are moved from one account to the other.

This separation allows for more flexibility in how transactions are processed, allowing for scalability and improved performance. The Cardano platform is powered by its native cryptocurrency, ADA, which can be used to send and receive digital funds. ADA holders can also stake their coins to help secure the network and earn rewards in return.

At its core, Cardano uses a proof-of-stake consensus algorithm called Ouroboros, which allows it to process transactions quickly and securely without relying on energy-intensive mining operations like Bitcoin does. This makes it more environmentally friendly than other blockchains. Cardano also uses smart contracts, which are computer programs that execute automatically when certain conditions are met.

This allows developers to create decentralized applications (dApps) on top of the Cardano blockchain that can be used for various purposes such as financial services, supply chain management, voting systems, etc. Overall, Cardano is an innovative blockchain platform that offers users an efficient way to send and receive digital funds while providing developers with powerful tools for creating dApps on top of its network.