Cardano (ADA) is often referred to as the "third-generation blockchain". The first generation, Bitcoin, operates on a proof-of-work model and is primarily used as a store of value. The second generation, Ethereum, introduced smart contracts but faced scalability limitations. Building upon these two, Cardano improves the blockchain architecture and consensus mechanisms to address issues such as scalability, interoperability, and sustainability.

Cardano's unique two-layer architecture separates the ledger of account values from the operations behind them. This structure enhances smart contract flexibility and scalability. The Cardano Settlement Layer (CSL) is used for transferring ADA, Cardano's native cryptocurrency, while the Cardano Computation Layer (CCL) handles smart contract execution, ensuring more efficient transactions.

Cardano also introduced Ouroboros, the first provably secure proof-of-stake (PoS) algorithm. It’s the first blockchain protocol to be based on peer-reviewed academic research, a defining feature that sets Cardano apart from other blockchains.

In June 2023, the SEC filed lawsuits against Binance and Coinbase, alleging that several cryptocurrencies, including ADA, were securities. This classification caused a significant decline in Cardano's market value. Despite the regulatory challenges, Cardano's development continued, focusing on scalability and decentralization.

By May 2024, Cardano successfully launched its Hydra Layer 2 solution, significantly improving transaction throughput and lowering costs by processing transactions off-chain. Hydra helped Cardano handle millions of transactions at low fees, positioning it as a leader in decentralized applications (dApps).

In August 2024, Cardano introduced the Chang Hard Fork, a major upgrade that enhanced the network's governance by allowing ADA holders to participate in on-chain voting through a decentralized governance structure involving a constitutional committee and delegate representatives (DReps).

Above are only for introduction, not intended as investment advice.