AION Explained
What Is Cardano?
Cardano is a public proof-of-stake blockchain. ADA is used for transaction fees, stake delegation and transfers or applications that settle on the network.
How Cardano works
Cardano uses a proof-of-stake protocol called Ouroboros. Stake pools participate in block production, while ADA holders may delegate stake to a pool. Delegation is not a promise of return and does not eliminate market, service or protocol risk.
- Proof-of-stake consensus
- Stake-pool delegation
- Extended UTXO accounting model
ADA, staking and applications
ADA is the network's native asset. It is used to pay fees and can be delegated to a stake pool. Applications on Cardano may introduce their own token, smart-contract and liquidity risks beyond the base network.
- Transaction fees
- Delegated staking
- Transfers and on-chain applications
Principal risks
ADA can move sharply in price. Other risks include application exploits, phishing, custody errors, changes in regulation, liquidity constraints and the possibility that expected adoption does not materialize.
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