The ADA is a cryptographic currency that operates on the Cardano Settlement Layer (CSL), the first and most secure lock chain based on the proof of participation mechanism that validates transactions. The Cardano team calls their proof of stake mechanism Ouroboros.
Unlike Working Trial, where miners invest intensive electrical energy to mine each block, stake trial chooses a random miner based on stake size (value).
In order to generate or mint a new block, a slot leader is chosen with a probability proportional to the amount of coins this node is carrying. Therefore, one of the ADA's advantages over Bitcoin, Ethereum and other similar cryptographic coins is its stake transaction validation energy efficiency proof system.
ADA is flexible like Ethereum due to a second layer of Cardano Computational Layer (CCL) that supports decentralized applications and smart contracts.
The ADA was initially created by Input Output Hong Kong (IOHK), a block chain development company. The project was led by Charles Hoskinson who was a former co-founder of Ethereum, Etereum classic and Bitshares. Currently, the ADA team consists of three organizations: Cardano Foundation, IOHK and Emurgo.
Cardano's main use is the transfer of value. The future development of CCL layer applications can provide easy and cost-effective payment solution for service providers like Uber, Upwork and the like.