Cardano features a multi-layer architecture that separates the settlement layer from the computation layer. The settlement layer, known as the Cardano Settlement Layer (CSL), handles ADA transactions, while the computation layer, known as the Cardano Computation Layer (CCL), supports smart contracts and dApps. This separation allows Cardano to achieve higher security and flexibility. The Ouroboros consensus mechanism, a proof-of-stake system, ensures the network's integrity and security by allowing ADA holders to participate in block validation. The modular design enables future upgrades without disrupting the network's operations, making Cardano scalable and adaptable for various use cases.

Why does Cardano exist?

Cardano was created to provide a sustainable and secure blockchain platform that addresses the limitations of previous generations of blockchains. The project, led by the company IOHK under the leadership of Charles Hoskinson, aims to create a research-driven, peer-reviewed platform that can support a global economy. Cardano strives to solve issues such as scalability, interoperability, and sustainability. By focusing on scientific research and collaboration with academic institutions, Cardano aims to establish itself as a leading platform for financial services, especially in developing countries where traditional financial systems are often inaccessible or inefficient.