In the battle of blockchains, Cardano has emerged as a promising contender that offers much more than simple digital transactions. One of the biggest cryptocurrencies by market cap with its focus on security, scalability, and sustainability, Cardano is designed to be one of the most flexible blockchain platform for running smart contracts.

In this beginner’s guide, you will learn about Cardano, exploring how it works, what makes it unique and why you should consider using it. Additionally, we will provide insights on why the native token, ADA, holds value and where you can buy Cardano.

What is Cardano?

Cardano is a next-generation decentralised blockchain that is designed to address the limitations of previous blockchain technologies and provide a secure and scalable infrastructure which allows for the development of a wide range of decentralized applications (dApps), smart contracts, new crypto tokens, games, and more. Created by IOHK (Input Output Hong Kong), a blockchain research and development company co-founded by Charles Hoskinson, Cardano distinguishes itself through its scientific approach and rigorous peer-reviewed research.

How does Cardano Work?

Cardano’s blockchain has the goal of becoming the most environmentally sustainable blockchain platform that allows for transactions in its native cryptocurrency, ADA, and to enable developers to build secure and scalable decentralized applications (dApps) that are powered by it.

Cardano achieves this through its architecture.

Proof-of-Stake(PoS)

Cardano uses a unique proof-of-stake (PoS) consensus mechanism called Ouroboros, which allows network participants to validate transactions and earn rewards based on the amount of ADA they hold. Unlike proof-of-work (PoW) algorithms, PoS doesn't rely on miners to solve complex mathematical problems, which makes it more energy-efficient and cost-effective. 

Under PoS, individual users can stake a network’s native cryptocurrency and become validator nodes. Validator nodes are similar to miners in that they verify transactions and ensure the network isn’t processing fraudulent transactions.

These validators verify transactions and add these blocks of verified transactions to the blockchain. Validators are then rewarded for the successful block with newly minted ADA.

The Cardano network selects a winner to validate the transactions and add a block based on the amount of ADA each validator has and the length of time they’ve held it for, therefore rewarding the most invested users. 

The Cardano Blockchain - Explaining the Layers

Cardano's architecture is divided into two layers: the Cardano Settlement Layer (CSL) and the Cardano Computation Layer (CCL). 

The Cardano Settlement Layer (CSL)

The Cardano Settlement Layer (CSL) serves as the foundation of the Cardano blockchain. It is responsible for handling ADA transactions, ensuring the secure transfer of value between accounts and to record transactions — This is where the transactions are validated by the Ouroboros consensus mechanism

Cardano Computation Layer (CCL)

The Cardano Computation Layer (CCL) is where the execution and computations of smart contracts and dApps takes place. This layer allows developers to create and deploy their decentralised applications on the Cardano platform — This layered design provides greater flexibility, security, and scalability.

Cardano Upgrades

Cardano is known for its systematic approach to upgrades. It follows a series of development phases, including Byron, Shelley, Goguen, Basho, and Voltaire. Each phase introduces new features and advancements to enhance the platform's functionality and security. Currently, Cardano is in the Basho phase, which focuses on scaling functionality. 

Cardano uses a unique approach to upgrades called a hard fork combinator (HFC). This enables network upgrades to be implemented in a seamless and backwards-compatible manner, without requiring users to switch to a new blockchain or token.

‍What Makes Cardano Unique?

• Scalability and low fees: Cardano layered architecture enables greater flexibility, security, and scalability. Cardano was designed to support fast transactions with minimal transaction fees, therefore, solving the current scalability and high fee issues found on Ethereum today

• Low energy consumption: Cardano has been built since day one to be a sustainable and environmentally friendly blockchain. Cardano uses a PoS consensus algorithm, which is more energy-efficient and cost-effective than PoW — This feature could play a vital role in Cardanos future success and adoption.

• Scientific approach: Cardano's uniqueness stems from its scientific approach, emphasis on peer-reviewed research, and commitment to combining the best features of existing blockchain platforms.

• Sustainable Solutions: Cardano is built with a focus on sustainability and social responsibility. Its mission is to provide financial services to underserved and unbanked populations around the world. Through its partnerships with governments and non-profit organisations, Cardano aims to improve the lives of millions of people by providing them with access to decentralised financial services.

• Growing Community: Cardano has a rapidly growing community of developers, entrepreneurs, and investors who are committed to the platform's success. The Cardano Foundation, a non-profit organisation based in Switzerland, oversees the development and promotion of the platform. Additionally, Cardano has a strong presence on social media platforms like Twitter and Reddit, where users can stay up-to-date on the latest news and developments.

What is Cardano's Native Token?

Cardano's native token is ADA, which is named after Ada Lovelace, a pioneering mathematician and computer programmer. ADA  plays a vital role in the Cardano ecosystem serving as a  medium of exchange, used to pay for transaction fees, smart contract execution, and other network services. ADA is also used as a means to participate in the platform's governance. ADA holders can stake their tokens to support the network's security and receive rewards in return.

‍Why Use Cardano?

There are several reasons why you might want to use Cardano. 

‍First: Cardano’s high-speed transactions and low transaction fees make it an attractive option for developers looking to build high-performance DeFi applications that require fast and inexpensive transactions.

‍Second: Cardano is also highly scalable, which means that it can support a large number of users and transactions without experiencing any performance issues

‍Third: Cardano allows you to participate in the Cardano network and earn rewards by staking your tokens.

Fourth: Cardano is a useful medium of exchange for buying and selling goods and services.

‍Where Can I Buy Cardano?

If you're looking to buy Cardano, Altify.com is a great place to start. 

At Altify, you can seamlessly buy, sell, and trade ADA using your local currency or other cryptocurrencies. 

Altify is a trusted and reliable cryptocurrency brokerage that offers a wide range of cryptocurrencies and cryptocurrency products. It offers users a simple and user-friendly platform, as well as 24/7 customer support to help you with any questions or issues you may have.

Altify users can easily invest in Cardano through the Altify platform, which allows for easy buying and selling of cryptocurrencies. With Altify's easy-to-use interface and low fees, investors can start building their Cardano portfolios today.