Blockchain Technology

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Blockchain technology is next-generation business process improvement software. Blockchain technology is collaborative and can improve business processes that occur between companies. A blockchain is a decentralized ledger of all transactions across a peer-to-peer network. Using this technology, participants can confirm transactions without a need for a central clearing authority. Potential applications can include fund transfers, settling trades, voting, and many other issues. Blockchain is the technology that enables the existence of cryptocurrency.[1]

Cardano

Cardano is a blockchain platform. Ada is digital currency and is the native token of Cardano. Every ada holder also holds a stake in the Cardano network. Ada stored in a wallet can be delegated to a stake pool to earn rewards and participate in the successful running of the network. [2]

Sustainability

Cardano is able to securely, sustainably, and ethically scale, with up to four million times the energy efficiency of bitcoin. Cardano's protocol, Ouroboros, is an environmentally sustainable, verifiably secure proof-of-stake protocol with rigorous security guarantees. [3]

Decentralization

The decentralization of Cardano puts responsibility for running the blockchain in the hands of stake pools. An essential element in this is reliable and effective connections between all the distributed nodes, and ensuring that the network is resilient to failure. [4]

Wallets

It is highly recommended to avoid keeping your cryptocurrency in an exchange longer than necessary, and instead to use a cryptocurrency wallet. A cryptocurrency wallet is a software program designed to store your public and private keys, send and receive digital currencies, monitor your balance, and interact with supported blockchains. Ada can be stored using a Daedalus or Yoroi wallet - the primary wallets of the Cardano ecosystem. [5]

Native Token

Cardano’s native token, ada, is a fungible token, as each ada is worth the same amount as the next. Tokenized assets can offer greater transparency during transactions due to the immutable nature of blockchain, greater accessibility through 24/7 availability, faster processing and settlement times, and increased liquidity.[6] Cardano can support multiple assets such as stablecoins, utility tokens, credential tokens, and security tokens.[7].

Stake Pools

Cryptocurrency that utilizes a Proof-of-Stake system allows holders to delegate their cryptocurrency into a stake pool. One example of a stake pool is the Sagan Stake Pool [8] which is a single pool operator [9].

Slots and Epochs

The Cardano blockchain uses the Ouroboros Praos protocol to facilitate consensus on the chain. Ouroboros Praos divides time into epochs. Each Cardano epoch consists of a number of slots, where each slot lasts for one second. A Cardano epoch currently includes 432,000 slots (5 days). In any slot, zero or more block-producing nodes might be nominated to be the slot leader. On average, one node is expected to be nominated every 20 seconds, for a total of 21,600 nominations per epoch. If randomly elected slot leaders produce blocks, one of them will be added to the chain. Other candidate blocks will be discarded. [10]