In the vast cryptocurrency ecosystem, names like Bitcoin, Ethereum, Litecoin, and XRP often dominate conversations. However, Cardano (ADA) has emerged as a notable contender, distinguished not only by its technology, but also by its origin: it was created by Charles Hoskinson, a former Ethereum developer. This project, launched in 2017, is presented as a third-generation blockchain, designed to overcome the limitations of its predecessors, combining rigorous academic research with a focus on scalability and sustainability.
Charles Hoskinson is a well-known figure in the crypto world. Before founding Cardano, was one of the co-founders of Ethereum with Vitalik Buterin and others in 2014. However, philosophical and strategic differences led him to abandon the project that same year. While Ethereum focused on rapid and pragmatic development, Hoskinson opted for a more methodical approach. Together with Jeremy Wood, he founded IOHK (Input Output Hong Kong), the company behind Cardano, with the mission of building a scientifically based, peer-reviewed blockchain designed to be secure and efficient over the long term.
Unlike Litecoin, which emerged as a lighter version of Bitcoin focused on fast transactions, or XRPCreated by Ripple Labs to facilitate cross-border payments, Cardano positions itself as a versatile platform for smart contracts and decentralized applications (dApps). Its protocol uses a Proof-of-Stake consensus algorithm called Ouroboros, which contrasts with the Proof-of-Work algorithms used in Bitcoin and Litecoin. This makes it more energy-efficient, a critical point in times where sustainability is a growing concern. Unlike XRP, which has faced criticism for its centralization and legal disputes with the SEC, Cardano focuses on decentralization and transparency in its governance.
Cardano development is divided into eras (Byron, Shelley, Goguen, Basho and Voltaire), each focused on a specific aspect, such as decentralization, smart contracts, or scalability. In 2021, with the Alonzo upgrade, Cardano finally enabled smart contracts, catching up with Ethereum. However, its adoption has been slower than its competitors, in part due to its deliberate and less speculative approach. While Ethereum leads in dApps and DeFi, Cardano seeks to attract projects with its promise of stability and low transaction costs.
Hoskinson has described Cardano as a “blockchain for the future”, with potential applications in sectors such as education, healthcare, and digital identity management, especially in developing countries. While it falls short of the market capitalization of Ethereum or Bitcoin, its ADA token is in the top ten according to CoinMarketCap as of March 2025. Neither Litecoin nor XRP have the same academic pedigree or founding vision as Cardano, making it a unique cryptocurrency, shaped by the experience and ambition of a former Ethereum developer.
