Cardano is a blockchain that uses proof of stakeProof of stakeA consensus method where crypto is locked up as a stake for the right to create blocks, and anyone who cheats can lose part of that stake. and is built on peer-reviewed academic research. Its currency is called ADA. Charles Hoskinson, a co-founder of Ethereum, and Jeremy Wood started the project in 2015, and the network went live in September 2017.
How does Cardano work?
Cardano uses the Ouroboros consensus mechanism. Time is divided into five-day epochs, and every second a draw decides which stake pool may produce the next block. The odds depend on how much ADA is delegated to the pool. On average, a new block is added about every 20 seconds.
ADA holders can take part in StakingStakingLocking up crypto on a proof-of-stake network to help confirm transactions, in return for rewards paid in the same crypto. by delegating their ADA to a stake pool. The ADA never leaves the wallet, isn't locked and can't be lost to penalties.
Cardano uses an extended version of Bitcoin's UTXOUTXOAn unspent amount from an earlier transaction; Bitcoin tracks what people own as a collection of these, like notes in a wallet, rather than as one balance. model. It has supported smart contracts since September 2021.
Supply and governance
ADA's maximum supplyMaximum supplyThe largest number of units of a cryptocurrency that can ever exist under its rules, such as 21 million for bitcoin. is 45 billion, and that cap is written into Cardano's constitution. About 31.1 billion existed when the network launched, and the rest is released gradually from a reserve, as rewards and into the network's shared treasury.
Since January 2025, representatives of ADA holders, stake pool operators and a constitutional committee have voted on changes to the network's rules and on spending from its shared treasury.
What to keep in mind
- Cardano moves slowly. Smart contracts arrived four years after the network launched, and critics say this cost Cardano its head start.
- ADA is named after the British mathematician Ada Lovelace. The smallest unit, the lovelace, is one millionth of an ADA.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.