There is no single decision-maker controlling Cardano's growth and development. Instead, decentralized processes empower ada holders to make suggestions and collaborate on decisions. All ada holders can suggest a change through the Cardano improvement proposal (CIP) system, or participate in Project Catalyst to vote on what changes should be made.
A governance action is a proposal that gets submitted on-chain for voting. It is an on-chain event triggered by a transaction. Governance actions have an expiration period, after which the action cannot be enacted.
Any ada holder can submit a governance action for a vote on-chain. Once the action is recorded on the ledger, voters submit voting transactions...
Governance tools are indispensable in a truly decentralized blockchain like Cardano. These tools foster collaboration and democratic consent, aligning core principles, processes, organizations, and mechanisms.
Voltaire’s developmental roadmap has prioritized governance tooling to create greater efficiencies and provide new avenues for community involvement ...
An irreversible change to a blockchain protocol. Cardano uses a hard fork combinator to ensure smooth upgrades. Unlike earlier blockchains, Cardano hard forks save the chain history and do not cause disruption for users.
A device that stores cryptocurrencies offline and can be connected to a computer to access the funds. Hardware wallets are secure and beneficial in terms of offline security and convenience as they can be carried around and used when needed.
Hash rate refers to the measurement of the processing power of a blockchain network, particularly in the context of proof of work (PoW) consensus algorithms. It measures the number of hash operations that a network can perform in a second.
In a PoW, miners use specialized hardware to perform complex mathematical calculations, known as hash functions, to val...
A functional programming language with a focus on producing secure code. Haskell is well suited to Cardano's high-assurance code, and the need for greater formal verification in the blockchain. Core parts of Cardano are written in Haskell and extensive testing processes ensure Plutus Core smart contracts work properly.
In the context of the Cardano network, when nodes receive two valid blocks for a single slot, nodes will select the block with the higher slot number and orphan the other. The reason for this is that the SPOs do not propagate the block within the appropriate timeframe.
To completely avoid blocks from getting orphaned in height battles, it is crucial for the...
A cryptocurrency wallet that can be accessed online to store currencies and make transactions. A hot wallet stores a collection of private keys and needs to be connected to the internet to process cryptocurrency operations.
A family of protocols that overlay the layer 1 Cardano blockchain to process transactions off the main chain. Hydra uses the main ledger as the secure settlement layer, boosts throughput, minimizes the delay in starting to process transactions, incurs low to no costs, and greatly reduces storage requirements.
The first of several Hydra protocols, and the basis of improving Cardano's scalability. Each Hydra Head works as an off-chain mini ledger, similar but faster than the main on-chain ledger, shared between small groups of participants. Many complex protocols can be added as layers on top of Cardano.
A Linux Foundation project under the Decentralized Trust initiative that provides components for building self-sovereign identity (SSI) solutions. Identus enhances security, privacy, and efficiency in blockchain-based identity management.
ICO stands for 'Initial Coin Offering'. It is a form of a crowdfunding campaign utilized by cryptocurrency startups to raise capital for their projects. During an ICO, investors purchase tokens or coins in the project before it is released to the public. This allows the project to secure funds early on and incentivizes investors to contribute by offering the...
IEO stands for 'Initial Exchange Offering'. It is a type of fundraising method used by cryptocurrency startups to raise capital through a cryptocurrency exchange. In an IEO, the startup partners with an exchange that conducts the offering on behalf of the startup.
Investors participate in the IEO by purchasing the startup's tokens or coins directly from the...
Input Output Global. The new name for IOHK, the company that developed the Cardano blockchain. IOG was registered in the US state of Wyoming in 2018, along with an office in Singapore.
IPFS stands for InterPlanetary File System. It is a decentralized and distributed peer-to-peer file storage system that aims to provide a more efficient and resilient way to store and access files on the internet.
In IPFS, files are broken up into smaller pieces, which are distributed across the network and stored on multiple nodes. When a user requests a f...
A way to raise funds for DApps or projects on Cardano. A project offers its users tokens usable within its DApp in exchange for these users delegating their stake to the project’s pool. This increases the pool’s margin and helps it gain more rewards. Users receive staking rewards and benefit by getting utility tokens. There is no risk of losing funds because...
A way to encourage participants in the system to engage in the network by rewarding them with a return that is proportional to their efforts. Incentives aim to ensure equality and fairness in a distributed network of participants by encouraging consistent, active, and strong participation. Cardano's incentives model uses game theory to calculate the incentiv...