This is a list of common terms and concepts related to Cardano that you should know to have a clear understanding of how the ecosystem works.
The name of the crypto currency of the Cardano blockchain. Named after the english mathematician and writer, Ada Lovelace.
1 ADA = 1,000,000 Lovelaces
A type of network data-structure that contains information about ADA
ownership, transaction output, network type and delegation preferences.
A collection of binary data that is self-contained, uniquely identifiable
and has value.
The fourth (4th) phase of Cardano development. This phase will introduce
performance enhancements. Named after Matsuo Basho the most famous poet of the Edo
period in Japan.
Byzantine Fault Tolerance is a property of a network system that allows
for some elements of the network to fail or act maliciously without harming the
network as a whole.
A block is a container for the records related to recent transactions.
Each block contains not only transaction records but also information about the
previous block and, as each new block is verified by the network, it is added
to the chain.
The initial bootstrap phase, or phase one of the Cardano network. Named
after the British poet, peer and politician, Lord Byron.
The process by which the networks nodes come to an agreement on the
state of the network and on which blocks should be produced. Cardano uses the Ouroboros
protocol to achieve consensus.
The total amount of stake delegated to a stake pool. This includes any
pledge the operator may have made plus the stake delegated to the pool by other
COST PER EPOCH
The fixed fee, denominated in ADA, charged by a pool to delegators. The
fee is subtracted from the epochs rewards total before the profit margin is
Daedalus is a wallet for the ADA cryptocurrency that allows you to send,
receive, store and delegate your holdings. The Daedalus wallet is a full node,
it manages a full copy of the Cardano blockchain. Daedalus is good for people who
are new to Cardano since it is very user friendly.
A decentralized application also known as a smart contract. dApps were
popularized by Ethereum and can now be found on a variety of blockchain
Delegation is the act of assigning the stake associated with your ADA
holdings to a stake pool so it can earn rewards for participating in the
A period of time defined by a
set number of slots. On the Cardano blockchain an epoch consists of four
hundred thirty-two thousand (432,000) slots which takes approximately five (5)
Every transaction costs a fee to process.
Transaction fees are used to prevent attacks on the network by introducing a
small cost that would become prohibitively expensive when abused on a large
A fungible token is a digital asset that is built so that each
individual token or fraction of a token is equivalent to the next. For example,
one (1) ADA held by person "A" is equal to one (1) ADA held by person
The third (3rd) phase of Cardano development. This phase will introduce
smart contracts. This phase is named after American computer scientist and professor,
A hard fork is a backwards incompatible update that makes a fundamental
change to the way the cryptocurrency works. Cardano had a hard fork to
transition from Byron to Shelley.
A way to encourage individuals to participate in the system by rewarding
them with a return that is proportional to their investment.
The ability to access and share information across different blockchain
networks without the need for intermediaries.
The ledger is a distributed database that is operated in a decentralized
manner by multiple nodes across numerous locations.
The smallest unit of the ADA crypto currency. Named after the english
mathematician and writer, Ada Lovelace.
1 Lovelace = 0.000001
Marlowe is a domain-specific programming language developed for the
purpose of writing financial smart contracts.
A unique digital asset with blockchain managed ownership that represents
such things as a collectible card, digital art, event tickets, or records of
physical assets. A non-fungible token cannot be divided into smaller parts.
Ouroboros Byzantine Fault Tolerant protocol. A version of the Ouroboros
protocol that includes byzantine fault tolerance.
A provably secure proof-of-stake consensus protocol. The Cardano
blockchain uses Ouroboros to provide the mechanics for stake delegation, stake
pools, incentives and rewards.
The performance metric measures stake pools and shows what percent of
slots assigned to a pool are successfully made by that pool. For example, if a
stake pool is assigned four (4) slots, but only makes two (2) of them, the
"performance" of that pool would be fifty percent (50%).
It is the amount of ADA committed to the stake pool by the operator. The
pool operators do not need to include a pledge to operate a pool but, if they
do, they must make sure to maintain their own delegated stake above this number
so their pools are able to mint blocks.
A Turing-complete programming platform designed for writing smart
contracts using functional programming methods. Plutus is based on the Haskell
The number of blocks a stake pool has successfully produced in the
Also known as the "pool tax". The profit margin is the
percentage of the total rewards that the operator takes after the fixed fee has
been applied but before the rewards are distributed to delegators.
Proof-of-stake is a type of consensus mechanism used to reach agreement
on which records should be added to the blockchain. Proof-of-stake reaches consensus
based on the stake or wealth of the network’s participants.
The methods implemented in a blockchain network that are used to reach
consensus and validate transactions. Cardano uses the Ouroboros protocol and
its variants in its blockchain network.
The amount of ADA contained in each new block that is paid out to stake
pools and delegators for participating in the network.
The point at which a stake pool has more than the ideal amount of stake
in it and its rewards to delegators start to diminish.
The creation of liquid asset back securities from pools of illiquid
A digital asset that gets its value from an external asset that can be
traded. Often representing stocks, bonds, or other revenue sharing assets.
Security tokens are subject to federal regulations and must be issued
The second (2nd) phase of Cardano development. In this phase Cardano
will become a decentralized network. Named after Percy Bysshe Shelley, who is
widely regarded as one of the greatest philosophical poets in the english
A period of time within an
epoch. There are four hundred thirty-two thousand (432,000) slots in an
The slot leader is the stake pool that has been elected to create a
block at a given slot. The slot leader election at the beginning of each epoch
determines which stake pool is elected to lead which slot during that epoch.
A soft fork is a backwards compatible update that makes changes to the
way the cryptocurrency works, in a way that does not conflict with existing
A reliable block producing network node that holds the combined stake of
various stake holders in a single entity.
A fungible or non-fungible tradable asset that can also be used as a
payment unit, reward, or store of information.
The representation of real-world assets as tokens.
Transactions-per-second. The number of transactions a blockchain can
process in a second.
Also known as a "Tx". A transaction represents the action of
sending or receiving funds on the network. Alltransactions
are visible in the blockchain networkexplorer.
A portion of the rewards earned each epoch is reserved for the treasury.
The treasury reserves will be used to fund future network and ecosystem
development and improvements. The current treasury take is twenty percent (20%)
A token that is issued to fund the development of a project and then is
later used to purchase goods or services from said project once it is
(O)utput," or the amount of cryptocurrency you
have left in your wallet after making a transaction.
The fifth (5th) phase of Cardano development. In this phase Cardano will
incorporate the treasury and governance into the network. Also known as François-Marie
Arouet, Voltaire was a French enlightenment writer,
philosopher, and historian.
A web lite wallet for Cardano running as a browser extension in Chrome
and Firefox that supports hardware wallets.