Technical Architecture

Cardano adopts a layered architecture, combining scientific methods, formal verification, and modular design to ensure security, scalability, and decentralized governance. Its technical architecture consists of the following key components:

Cardano’s Dual-Layer Structure:

1. Cardano Settlement Layer (CSL）

• Handles ADA transactions, similar to Bitcoin’s UTXO model.
• Ensures transaction security and efficiency through the Ouroboros PoS consensus mechanism.
• Implements a minimal transaction fee model to maintain low-cost payments and fund transfers.

1. Cardano Computation Layer (CCL)

• Manages smart contracts and decentralized applications (dApps).
• Uses Plutus (based on Haskell) as its smart contract programming language to enhance security.
• Supports Marlowe, a domain-specific language (DSL) designed for financial contracts.

Advantage of the Layered Architecture:

• Improved Scalability: By separating transactions from computation, throughput is enhanced.
• Enhanced Security: The smart contract layer can be optimized independently without affecting the payment layer.
• Greater Flexibility for Upgrades: Protocol updates can be implemented progressively without impacting the entire ecosystem.

Consensus Mechanism

Cardano employs Ouroboros, the world’s first peer-reviewed Proof of Stake (PoS) consensus protocol. Compared to Proof of Work (PoW), Ouroboros offers the following advantages:

• Energy Efficiency: Eliminates the high energy consumption associated with PoW, making it more sustainable in the long run.
• Randomized Leader Election: Within each Epoch (a fixed time period), the system randomly selects block producers (Slot Leaders).
• Stake Pools: Users can delegate their ADA to stake pools, contributing to network security while earning staking rewards.

Smart Contracts

Cardano supports two smart contract programming languages:

Plutus (Based on Haskell)

• Designed for financial applications, DeFi, identity verification, and other high-security scenarios.
• Enables the creation of highly secure smart contracts with support for Formal Methods verification.
• Utilizes the EUTXO (Extended UTXO) model to enhance parallel execution capabilities.

Marlowe (A DSL for Financial Contracts)

• Tailored for financial applications such as loans, options, and payment protocols.
• Features a visual interface that lowers the development barrier, enabling non-programmers to create smart contracts.

Scalability

To support global-scale adoption, Cardano has introduced multiple scalability solutions, including:

Hydra (State Channel Technology):

• Allows users to create multiple parallel payment channels to increase transactions per second (TPS).
• Each Hydra head is expected to handle 1,000+ TPS, with total TPS potentially reaching millions.
• Ideal for microtransactions, gaming, and small-scale payments.

Mithril (Light Clients & Data Synchronization)

• A lightweight blockchain client that enables users to verify transactions without downloading the full blockchain data.
• Suitable for wallets, mobile devices, and other low-power environments.

Sidechains:

• Enables Cardano to interoperate with other blockchains like Bitcoin, Ethereum, and Polkadot, improving cross-chain compatibility.
• Sidechains can be customized for specific use cases such as privacy transactions, supply chain management, and identity verification.

Governance Principles

Cardano emphasizes decentralized governance, allowing community members to participate in proposals and voting through initiatives like Project Catalyst. This community-driven governance model ensures platform fairness and transparency. There are three primary governance mechanisms:

• Project Catalyst: The world’s largest on-chain governance experiment, enabling the community to submit proposals and receive funding support.
• Constitution: Establishes governance rules for the Cardano ecosystem to ensure fairness.
• DRep (Delegated Representatives): Allows ADA holders to vote on the future development of Cardano.

Tokenomics

ADA is the native token of the Cardano blockchain, designed to ensure network security, decentralization, and sustainable growth.

Supply

The total supply of ADA is strictly limited to 45 billion coins. Currently, approximately 35.1 billion ADA are in circulation, accounting for 78% of the total supply.

Distribution

• Public Sale: Approximately 25.9 billion ADA (57.6% of total supply) were sold to the public through an Initial Coin Offering (ICO).
• Reserve Fund: Approximately 13.9 billion ADA (30.9% of total supply) is reserved for continuous network development and ecosystem support.
• IOHK: Approximately 2.46 billion ADA (5.5% of total supply) is allocated to IOHK (Input Output Hong Kong) for protocol development and maintenance.
• EMURGO: Approximately 2.07 billion ADA (4.6% of total supply) is allocated to EMURGO to promote business applications and ecosystem growth.
• Cardano Foundation: Approximately 640 million ADA (1.4% of total supply) is allocated to the Cardano Foundation for community development and promotion.

Figure 1: ADA Token Distribution

Token Utility

ADA serves multiple purposes within the Cardano ecosystem:

• Transaction Medium: Used to pay transaction fees on the network.
• Staking: ADA holders can delegate their ADA to stake pools, participate in network consensus, and earn rewards.
• Governance Participation: In the future, ADA holders will be able to participate in network governance decisions, voting on protocol upgrades and development directions.
• Smart Contracts: ADA is used to execute smart contracts and decentralized applications (dApps) on the Cardano platform.

Staking Participation

Number of Staking Wallets: As of February 2025, the number of ADA staking wallets has reached 5,179,695.

Total Staked Amount: The total amount of ADA staked is 34.5 billion ADA, accounting for 75% of the total ADA supply.

Figure 2: ADA Staking Amount and Wallet Count (Source [8])

Through these designs, ADA’s tokenomics ensure the security, decentralization, and long-term sustainability of the Cardano network.

Roadmap

Cardano’s development roadmap is divided into five key stages, each named after historical cultural figures, symbolizing the evolution of the network:

1. Byron: Establishes the foundation, launching the initial version to enable the buying and selling of ADA cryptocurrency.
2. Shelley: Achieves decentralization, transitioning the network from federated control to community-operated nodes.
3. Goguen: Introduces smart contract functionality, supporting the development of decentralized applications (dApps).
4. Basho: Focuses on scalability and interoperability, enhancing performance to support more applications.
5. Voltaire: Introduces governance and financial systems, empowering the community to make decisions about the network’s future development.

Cardano Community

Online Community

Cardano’s online community is active and diverse, primarily gathering supporters and developers worldwide via social media platforms, demonstrating significant influence and outreach.

Cardano Community (Official Community Account) [1]

Followers: 1.4M

Key Features: Focuses on sharing updates, project progress, and ecosystem partnerships, ensuring community engagement and transparency.

Cardano Foundation (Official Foundation Account) [2]

Followers: 838.9K

Key Features: Focuses on global Cardano promotion, strategic partnerships, and governance mechanisms, serving as the primary platform for strategic communications.

Input Output HK (IOHK) [3]

Followers: 270K

Key Features: As Cardano’s core research and development company, IOHK primarily shares technical development updates, upgrades, and research insights, attracting many developers.

EMURGO (Business Development Division) [4]

Followers: 124K

Key Features: Focuses on promoting business applications, covering enterprise partnerships, product development, and technical support, connecting Cardano with traditional business sectors.

The total online community surpasses 2.6M followers, encompassing developers, investors, researchers, and blockchain enthusiasts, showcasing a robust international presence.

Offline Community

Despite blockchain projects often relying heavily on online engagement, Cardano actively promotes offline community events worldwide, fostering localized communication and growth.

Total Meetup Groups: 110 [5]

Total Members: 59,637

Countries Covered: 36

The offline community actively engages in regions such as North America, Europe, and Asia, with particularly strong bases in Germany, Japan, and the United States. Activities include technical workshops, developer training sessions, ecosystem launch events, and community meetups, enhancing community cohesion and user engagement.

Overview of the Cardano Project

Project Overview

The Cardano ecosystem is rapidly expanding, with 582 [6] active projects as of now. Approximately 70% of these projects are designed for global application scenarios, covering diverse fields such as finance, supply chain management, identity authentication, the metaverse, and education. From an industry perspective, financial services projects (such as Moneta, Liqwid, and Minswap) hold a significant position, encompassing key functionalities like stablecoins, lending, and synthetic asset trading. In the supply chain management sector (e.g., Agrot, Georgian Wine Traceability), blockchain technology is employed to enhance transparency and traceability. Identity authentication projects (such as IAMX) leverage decentralized identity (DID) technology to improve data privacy and security. NFT and metaverse platforms (such as JPG Store and Cornucopias) are also driving the thriving digital asset economy.

On the technical side, the Cardano ecosystem continues to optimize its architecture. Development tools like Aiken and Blockfrost provide developers with efficient and convenient building environments, while wallet applications such as Daedalus and Nami enhance blockchain access and interaction experiences. With the continuous growth of DeFi, enterprise applications, and the Web3 ecosystem, it is anticipated that by 2025, the Cardano ecosystem will achieve deeper penetration across multiple industries, driving globalization to new heights.

Figure 3: Number of Different Ecosystem Projects (Source: Cardano Ecosystem Guide 2025 [6])

Financial Services

Since its launch in 2017, Cardano (ADA) has achieved significant progress in the financial sector. Its unique Proof-of-Stake (PoS) consensus mechanism and layered architecture provide a solid foundation for decentralized finance (DeFi) applications. In 2021, Cardano introduced smart contract functionality, further expanding the DeFi ecosystem.

Currently, the Cardano network supports a variety of DeFi applications, including decentralized exchanges (DEXs), lending platforms, and stablecoin projects.

Cardano’s DeFi ecosystem boasts a strong technical foundation, leveraging Plutus smart contracts and the Ouroboros PoS mechanism to offer high security and sustainability. However, the DeFi ecosystem is still in its growth stage, with DEX trading volume remaining relatively low compared to platforms like Ethereum and Solana. For example, Minswap’s average daily trading volume is around $ 1.5 million, significantly lower than Uniswap’s multibillion-dollar volume. Regarding staking, Cardano allows users to stake ADA to participate in network consensus. However, liquid staking has yet to be deeply integrated into the blockchain infrastructure, making it less competitive against blockchains where liquid staking is a core feature. Overall, Cardano must further expand its ecosystem applications, enhance trading liquidity, and improve DeFi competitiveness to secure a stronger position in the market.

Figure 4: Cardano ADA TVL Trend Chart (Source: defilemma [7])

Regarding the development trend of the Cardano DeFi ecosystem (2022-2025), the TVL growth pattern is as follows:

• 2022-2023 Downturn Period: During the crypto market downturn in 2022, Cardano DeFi TVL remained between $ 100-200 million, with relatively low market activity.
• Q4 2023 Recovery: Starting at the end of 2023, TVL began to recover, surpassing $ 300 million, indicating the beginning of DeFi ecosystem revitalization.
• Significant Growth in 2024: In 2024, the Cardano DeFi ecosystem accelerated growth, with TVL exceeding $ 500 million at one point, reflecting a significant increase in market activity.
• Record High in 2025: By early 2025, Cardano’s TVL surpassed $ 700 million, reaching a record high and signaling the prosperity of the DeFi ecosystem.

The key driving factors include:

• Improved Smart Contract Maturity: Enhancements in smart contract technologies like Plutus and Aiken have improved the efficiency of DeFi protocols.
• Increased Liquidity: The growth of DEXs (such as Minswap and SundaeSwap) and lending platforms (such as Aada Finance) has driven DeFi ecosystem expansion.
• Stablecoins and Synthetic Assets: Protocols like DJED (an algorithmic stablecoin) and Indigo (a synthetic asset platform) have attracted more capital into the Cardano DeFi ecosystem.
• Enhanced Cross-Chain and Interoperability: The development of Cardano sidechains and cross-chain bridges has brought more assets and users into the ecosystem.

Below are introductions to several key Cardano DeFi projects, including the stablecoin project Moneta, the lending platform Liqwid, the DEX platform Minswap, the synthetic asset project Indigo, and the Cardano wallet Eternl.

Moneta

Moneta is a fiat-backed stablecoin within the Cardano ecosystem. Its USDM token is pegged 1:1 to the US dollar, aiming to provide a low-cost, transparent, and secure payment solution. Established in 2022, Moneta focuses on issuing stablecoins on the Cardano blockchain and officially launched on March 16, 2024, initially serving 17 states in the United States. Moneta employs a strict reserve mechanism where the minting and burning of USDM tokens are verified by the third-party oracle service Charli3. This ensures that each token is backed by an equivalent amount of USD in reserves, guaranteeing stability and reliability. To maintain transparency, Moneta undergoes third-party audits to confirm its reserve holdings.

As a foundational asset in the DeFi ecosystem, USDM can be used for instant on-chain payments, decentralized finance (DeFi) protocols, cross-border transactions, and remittances. USDM has been integrated into Cardano DEX platforms such as Minswap and SundaeSwap, supporting DeFi applications like Aada Finance (decentralized lending) and Indigo (synthetic assets). Technically, Moneta leverages Cardano’s Plutus smart contracts to ensure security. It offers advantages such as low transaction fees and cross-chain compatibility (with future support planned for Ethereum and Polygon).

Positioned as an alternative to USDT and USDC within the Cardano ecosystem, Moneta aims to become a stable, scalable, and globally accessible digital currency. Its applications are expanding to include merchant payments, NFT transactions, and DeFi lending, driving further development in decentralized finance.

Moneta Website: https://moneta.global/
Moneta Twitter: https://x.com/USDMOfficial

Liqwid

Project Overview
Liqwid Finance is a decentralized, non-custodial liquidity protocol built on the Cardano blockchain, designed to provide users with efficient and secure lending services. Through Liqwid, users can deposit assets into liquidity markets to earn interest or provide collateral to obtain overcollateralized loans.

Core Features
Deposits and Loans: Users can deposit Cardano native assets into the protocol to earn interest or borrow other assets through overcollateralized loans. All transactions are executed via decentralized smart contracts, eliminating the need for intermediaries.

Technical Architecture
The Liqwid protocol is composed of decentralized, audited smart contracts built on the Cardano blockchain, ensuring security and transparency in transactions.

Project History

• Establishment and Funding: Liqwid Labs raised $2.7 million in a seed round led by cFund, an early-stage venture fund supported by Cardano’s founding entity, IOG.
• Mainnet Launch: Liqwid officially launched its mainnet in February 2023, introducing lending services to the ecosystem.

Liqwid TVL Growth Analysis (2023-2025)
Based on data from DeFiLlama, the following analysis outlines Liqwid’s Total Value Locked (TVL) growth and fluctuations between 2023 and 2025. The trend reflects the expansion of the Cardano DeFi ecosystem and shifts in demand for decentralized lending.

Figure 5: Liqwid TVL Growth Trend (Source: DeFiLlama [9])

Early Development Phase (Q1 - Q4 2023)
During its initial phase, TVL remained between $0 - $10 million, marking the protocol’s establishment period.
In Q2-Q3 2023, TVL steadily increased, reaching $30 million, reflecting the growing maturity of the Cardano DeFi ecosystem and rising user interest.
By Q4 2023, TVL continued to climb, surpassing $50 million, indicating a substantial inflow of funds into the Liqwid protocol.

Growth Surge Phase (Q1 - Q3 2024)
In Q1 2024, TVL reached nearly $60 million, reflecting consistent demand for lending services.
During Q2-Q3 2024, TVL experienced short-term adjustments, fluctuating between $30 million - $50 million, likely due to market conditions or liquidity shifts.

All-Time High and Correction (Early 2025)
At the beginning of 2025, Liqwid reached its all-time highest TVL, exceeding $150 million, peaking close to $180 million.
Shortly after, TVL experienced a notable correction, dropping to approximately $120 million, possibly linked to DeFi market volatility or internal fund reallocation.

Future Outlook

• Short-Term Forecast (Q1-Q2 2025): TVL may fluctuate between $90 million - $150 million, depending on market sentiment and ecosystem growth.
• Long-Term Projection: As a core lending protocol in the Cardano ecosystem, Liqwid is poised to expand its TVL by increasing liquidity, integrating more assets, and enhancing cross-chain compatibility, potentially surpassing the $200 million mark.

Conclusion
Liqwid’s TVL growth, from under $10 million in early 2023 to a peak of nearly $180 million in early 2025, highlights its rising significance within the Cardano DeFi ecosystem. As a leading decentralized lending protocol, Liqwid holds substantial growth potential and is set to play a key role in driving Cardano’s DeFi expansion.

Liqwid Twitter: https://x.com/liqwidfinance

Miswap

Project Overview
Minswap is a multi-pool decentralized exchange (DEX) built on the Cardano blockchain, designed to offer users low-fee, permissionless token swapping services. Through Minswap, users can trade various tokens on Cardano, provide liquidity, and participate in yield farming and other DeFi activities.

Core Features

• Token Swapping: Users can exchange thousands of Cardano tokens at low fees, accessing the deepest on-chain liquidity available.
• Liquidity Provision: By adding tokens to liquidity pools, users earn transaction fees. The “Zap In” feature simplifies the process for providing liquidity.
• Yield Farming: By staking liquidity provider (LP) tokens, users can earn MIN tokens and potentially unlock additional rewards.
• MIN Staking: Users can stake their MIN tokens for 9 months to earn ADA rewards generated from transaction fees, with potential additional token rewards from other projects.
• Launch Bowl: A decentralized launchpad that helps new projects launch their tokens and build strong communities.

Minswap Volume Growth Analysis (2023-2025)

Figure 6: Minswap Volume Trend (Source: DeFiLlama [10])

According to DeFiLlama data, Minswap experienced significant trading volume fluctuations between 2023 and 2025, reflecting evolving trends in the Cardano DeFi ecosystem.

• Q1-Q2 2023: Initial Growth
  Trading volume ranged between $5 million - $10 million, indicating the early growth of Cardano’s DeFi ecosystem with Minswap emerging as a key DEX.

• Q3-Q4 2023: Peak Surge
  Trading volume surged multiple times to $15 million - $20 million, marking a period of Cardano DeFi expansion. This growth may have been driven by rising ADA prices, new protocol launches, or increased DeFi interest.

• Q1-Q2 2024: Historical High
  Trading volume surpassed $20 million, marking Minswap’s all-time high. This likely reflects the Cardano ecosystem’s further maturity, fueled by DeFi TVL growth, the introduction of liquid staking, or catalyst events like new project launches.

• Q3-Q4 2024: Adjustment Period
  Trading volume declined to the $5 million - $10 million range, possibly due to market corrections, cooling DeFi interest, or reduced liquidity mining incentives impacting trading activity.

• Early 2025: Recovery Phase
  Trading volume rebounded to approximately $15 million - $20 million, signaling improving market sentiment. This recovery may be linked to new developments in the Cardano ecosystem, such as increased liquid staking projects or the introduction of cross-chain assets. However, volumes had not yet stabilized at previous peak levels.

Minswap Development Timeline

• Q2 2021: Project launched, initiating DEX development.
• March 9, 2022: Minswap V1 officially launched on the Cardano mainnet, offering core trading and liquidity services.
• Q2 2024: Stableswap launched, enhancing liquidity for stablecoin trading.
• Q3 2024: Minswap V2 released, improving AMM efficiency and overall performance.

Market Position and Future Outlook

As the leading DEX in the Cardano ecosystem, Minswap has solidified its position by continuously optimizing its technology, enhancing liquidity, and maintaining strong community governance. Looking ahead, with improvements in cross-chain compatibility, Layer 2 expansion, and broader asset integration, Minswap is poised to become a foundational infrastructure within Cardano’s DeFi ecosystem, driving the growth of decentralized finance.

Minswap Website: https://minswap.org/
Minswap Whitepaper: https://docs.minswap.org/whitepaper
Minswap Twitter: https://twitter.com/MinswapDEX

Indigo

Project Overview
Indigo is a decentralized synthetic assets protocol built on the Cardano blockchain, enabling users to create and trade synthetic assets (iAssets) that are pegged to real-world asset prices, such as iBTC, iETH, iUSD, and iCPI. The protocol leverages a decentralized Collateralized Debt Position (CDP) mechanism to ensure overcollateralization, maintaining asset stability and security.

Core Features

• iAssets and Its Role

  • Synthetic Assets (iAssets): Users can mint iBTC, iETH, iUSD, and iCPI, which are pegged to the prices of corresponding real-world assets.
  • Decentralized Trading: iAssets can be traded on Cardano ecosystem DEXs like Minswap, enhancing asset liquidity.

• Collateralized Debt Position (CDP)

  • CDP Mechanism: Users can deposit ADA or other assets as overcollateralized backing to mint synthetic assets.
  • Minimum Collateral Ratios: Different iAssets have specific minimum collateral ratios, such as 150% or 200%, ensuring sufficient overcollateralization.
  • Staking Rewards: Users who deposit ADA as collateral can still earn ADA staking rewards, improving capital efficiency.

• Price Stability Mechanism:

  • Decentralized Oracle: Provides asset price data to ensure iAssets’ prices remain aligned with their corresponding real-world values.
  • Stability Pools: Users can stake iAssets in stability pools to support the liquidation of undercollateralized CDPs, earning ADA and INDY tokens as rewards.

• DEXTER

  • Indigo offers an open-source DEX aggregator called DEXTER, enabling users to seamlessly exchange iAssets, ADA, and INDY directly within the platform.
  • DEXTER V2 introduces the “Buy to Burn” feature, enhancing protocol sustainability.

Indigo TVL Growth Analysis (2023-2025)
According to DeFiLlama data, Indigo’s Total Value Locked (TVL) experienced notable growth, adjustment, and recovery between 2023-2025, demonstrating the protocol’s increasing maturity within the DeFi ecosystem.

Figure 7: Indigo TVL Trend (Source: DeFiLlama)

• Q1-Q4 2023: Steady Growth
  TVL started in the $10 million - $20 million range, gradually increasing and surpassing $30 million, reflecting rising demand for synthetic assets.

• Q1-Q2 2024: Historical Peak
  TVL reached $90 million and eventually exceeded $120 million, showcasing strong market recognition of iAssets and the CDP mechanism.

• Q3-Q4 2024: Adjustment Period
  TVL decreased to the $50 million - $70 million range, possibly due to market corrections and liquidity shifts.

• Early 2025: Recovery Phase
  TVL climbed back above $90 million, later stabilizing within the $70 million - $90 million range.

Conclusion
As a core DeFi protocol within the Cardano ecosystem, Indigo plays a vital role by providing a decentralized platform for synthetic asset trading, lowering entry barriers for financial market participation. Looking ahead, Indigo is poised to strengthen its position by expanding iAssets offerings, enhancing cross-chain integration, and improving governance mechanisms. These developments are expected to make Indigo an increasingly crucial tool for meeting complex investment demands in the Cardano DeFi space.

Indigo Website: https://www.indigoprotocol.io/
Indigo Twitter: https://x.com/Indigo_protocol

Wallet
The Cardano ecosystem offers a variety of secure, decentralized, and efficient wallet solutions, enabling users to store, manage, and utilize ADA and other native tokens. These wallets provide not only core features such as asset storage, staking rewards, and decentralized application (dApp) interaction, but also come in various forms to cater to different user preferences, including full-node wallets, light wallets, browser extensions, and mobile apps. Whether you are a long-term holder seeking maximum security or an active trader frequently engaged in DeFi and NFT activities, Cardano provides suitable wallet options to meet your crypto management needs.

Daedalus

Daedalus is a full-node desktop wallet developed by IOHK (Input Output Hong Kong) specifically for the Cardano blockchain. As an open-source wallet, Daedalus allows users to run a complete Cardano node on their local computer, downloading and independently verifying the entire blockchain history. This ensures the highest level of security and decentralization.

Key Features

• Full-Node Operation: Daedalus operates by running a full Cardano node on the user’s computer, enabling direct interaction with the blockchain without reliance on third parties.
• Multi-Platform Support: The wallet is compatible with Windows, macOS, and Linux, accommodating diverse user preferences.
• Enhanced Security: Since Daedalus runs a complete node, users are not dependent on external servers. This ensures transactions are independently verified, and funds are securely stored.
• Staking Features: Users can delegate their ADA directly within the wallet to selected staking pools to earn staking rewards.

Performance Analysis

• Security: As a full-node wallet, Daedalus operates independently of third-party APIs, ensuring complete decentralization. Private keys remain stored locally on your device—never uploaded to external servers—which significantly reduces theft risk. By synchronizing the entire blockchain, Daedalus independently verifies all transactions without relying on external sources. The wallet’s lack of direct dApp interaction further minimizes exposure to potentially malicious smart contracts.
• Staking Capabilities: Users can stake ADA directly and choose any staking pool. The wallet supports multiple accounts, enabling delegation to different staking pools for optimized returns. It provides comprehensive pool data, including performance history, saturation levels, and fees to support informed decision-making.
• Exchange Features: Daedalus does not include built-in token swaps—users must transfer funds to DEX platforms like Minswap or SundaeSwap for exchanges. This makes it ideal for long-term holders but less suitable for frequent traders or active DeFi users.

Since Daedalus is a full-node wallet, the initial installation requires downloading and synchronizing the entire Cardano blockchain. This process may take considerable time and requires adequate hardware resources, including sufficient CPU performance, storage capacity, and a stable internet connection to maintain uninterrupted synchronization.

Overall, Daedalus provides a robust and secure solution for users prioritizing maximum security and a fully decentralized experience. For those seeking a faster and more lightweight alternative, exploring light wallet options may be more suitable.

Daedalus Website: https://daedaluswallet.io/

Nami

Nami is a non-custodial browser extension wallet designed for interacting with the Cardano blockchain and connecting to decentralized applications (dApps). It enables users to send and store multiple assets, delegate ADA, and perform other functions.

Key Features:

• Non-Custodial Wallet: Nami is a non-custodial wallet, meaning users have full control over their private keys and funds, ensuring asset security.
• Browser Compatibility: Nami functions as a browser extension compatible with Chrome, Brave, and other Chrome-based browsers, enabling users to manage their Cardano assets directly within their browser.
• dApp Interaction: Nami seamlessly interacts with dApps on the Cardano blockchain, allowing users to access and utilize various decentralized applications directly through the wallet.
• Asset Management: Users can send and store multiple assets via Nami, making it easy to manage their digital asset portfolio.
• Delegation Feature: Nami supports ADA delegation to any Cardano staking pool, allowing users to earn rewards through staking.
• Sub-Account Creation: Nami adopts a single-address model and allows users to create sub-accounts from a single recovery phrase. Each account operates independently, offering enhanced privacy and anonymity.
• Hardware Wallet Integration: Nami allows users to import a recovery phrase and pair multiple hardware wallets. Each wallet can manage multiple accounts. Integration with hardware wallets like Ledger adds an extra layer of security, further safeguarding users’ assets.

Performance Analysis:

• Security: Nami emphasizes full user control over private keys to ensure asset security. Upon wallet creation, users are provided with a 24-word recovery phrase, essential for restoring the wallet and accessing assets. Users are strongly advised to store this recovery phrase securely offline, as losing it will result in the inability to restore the wallet or access digital assets.
• Fees: Nami is free to download and use. However, some third-party services may charge additional fees.
• Compatibility: While Nami is fully compatible with Lace, its compatibility with other Cardano wallets is limited. It does not track all addresses imported from other wallets, which may result in incomplete asset display. Therefore, it is recommended to create a new wallet specifically for Nami use.
• Network Switching: Nami allows users to switch between different network environments, including Preview, Pre-Production, and Mainnet. This feature enables users to test new functionalities before they are deployed to the mainnet, ensuring a smooth and error-free experience.

Overall, Nami offers a convenient solution for users seeking to manage Cardano assets efficiently and securely through their browser. However, users looking for mobile wallet support may need to explore alternative options.

Nami Website: https://www.namiwallet.io/

VESPR

VESPR is a non-custodial light wallet designed specifically for the Cardano blockchain, providing users with a secure, fast, and user-friendly digital asset management experience. As a non-custodial wallet, VESPR does not store users’ email addresses, passwords, recovery phrases, or private keys, ensuring users have full control over their assets.

Key Features:

• Multi-Platform Support: VESPR offers both mobile and desktop versions, ensuring a smooth and reliable experience across different devices.
• Built-in DEX Aggregator: VESPR integrates a decentralized exchange (DEX) aggregator, allowing users to find the best exchange rates across all Cardano DEXs for convenient token swaps.
• dApp Browser: The built-in dApp browser enables users to explore and interact with hundreds of decentralized applications in the Cardano ecosystem directly within the wallet.
• NFT Support: VESPR supports Cardano-based NFTs, allowing users to send, receive, and trade NFTs directly within the wallet, simplifying digital collectibles management.
• Community-Driven: As a community-operated project, VESPR empowers users with voting rights to propose and approve wallet improvements or changes, promoting transparency and community engagement.

Performance Analysis

• Security: VESPR employs multiple encryption methods to protect users’ funds and data. Users can enhance security by enabling password protection and biometric authentication. Additionally, VESPR supports integration with hardware wallets such as Ledger, Trezor, and Keystone, providing an extra layer of security to safeguard users’ assets.
• Staking Features: Users can delegate ADA directly through VESPR to their chosen staking pools to earn staking rewards. This feature allows users to participate easily in the Cardano network’s staking process, generating passive income.
• Exchange Functionality: VESPR offers a built-in swap feature that enables users to exchange tokens directly within the app. By integrating a DEX aggregator, VESPR ensures users get the best exchange rates for efficient and cost-effective transactions.
• User Experience: VESPR offers an intuitive interface designed to cater to all types of users — from experienced investors and Cardano enthusiasts to newcomers exploring Web3. The wallet prioritizes speed and reliability, ensuring seamless transactions anytime, anywhere.

VESPR’s mission is to simplify, secure, and streamline interactions with the Cardano blockchain. Whether sending ADA, exploring dApps, or managing digital assets, VESPR is committed to delivering a smooth and trustworthy user experience.

Overall, VESPR offers a feature-rich and user-friendly solution for users seeking to manage Cardano assets securely and efficiently on both mobile and desktop platforms. Its non-custodial nature, extensive features, and strong security measures make it a trusted wallet choice within the Cardano ecosystem.

VESPR Website: https://vespr.xyz/

Eternl

Eternl is a multifunctional light wallet designed specifically for the Cardano blockchain, offering users a secure and convenient digital asset management experience. Developed by the well-known Cardano staking pool teams TITAN and AHL, Eternl has gained strong support from the Cardano community.

Key Features

• Multi-Platform Support: Eternl offers browser extensions, desktop, and mobile versions, allowing users to choose the most suitable platform based on their needs.
• Self-Custody: As a self-custodial wallet, Eternl gives users full control over their private keys and funds, ensuring asset security.
• Multi-Pool Staking: Eternl supports staking across multiple Cardano staking pools, giving users flexibility in their staking choices to maximize their annual percentage yield (APY).
• Token and NFT Support: Eternl provides comprehensive support for Cardano native tokens and NFTs, allowing users to conveniently manage, send, and receive various digital assets.
• Hardware Wallet Integration: Eternl integrates with hardware wallets such as Ledger and Trezor, offering an additional layer of security to safeguard users’ assets.
• dApp Interaction: Through the browser extension, users can easily access and interact with decentralized applications (dApps) within the Cardano ecosystem, participating in DeFi, NFT marketplaces, and other Web3 activities.

Performance Analysis

• Security: Eternl offers essential security features such as a recovery phrase and password protection to ensure account safety. Additionally, integration with hardware wallets provides an extra security layer, reducing the risk of unauthorized access.
• User Experience: Eternl features an intuitive interface that, despite its extensive features, remains user-friendly and suitable for both beginners and experienced users.

Overall, Eternl is a powerful and feature-rich wallet within the Cardano ecosystem, providing users with a comprehensive solution for digital asset management. Its emphasis on security, flexibility, and ease of use makes it an excellent choice for Cardano users seeking a reliable wallet solution.

Eternl Wallet Twitter: https://x.com/eternlwallet

Eternl Wallet Website: https://eternl.io/app/mainnet/welcome

Table 1: Comparison of Common Cardano Wallets

Each wallet in the Cardano ecosystem - Daedalus, Nami, VESPR, and Eternl - has distinct characteristics suited for different types of users. Daedalus, as a full-node wallet, offers the highest level of security and a fully decentralized experience but requires significant device resources. Nami is lightweight and fast, ideal for everyday transactions and dApp interactions, though it lacks multi-account management. VESPR balances desktop and mobile experiences with a comprehensive set of features, while Eternl excels in multi-account support and multi-pool staking, making it an excellent choice for advanced users. Selecting the appropriate wallet based on individual needs can enhance asset management efficiency and improve participation in the Cardano ecosystem.

Metaverse and Gaming

NFT metaverse projects are reshaping the digital economy by leveraging blockchain technology to enhance digital asset ownership, virtual economies, decentralized governance, and cross-chain interoperability. In the Cardano ecosystem, representative metaverse projects such as Pavia, Cornucopias, and Clay Nation, alongside the prominent NFT marketplace JPG.Store, collectively outline the development blueprint for Cardano’s NFT ecosystem.

JPG.Store

Overview

JPG Store is the most active and leading NFT marketplace on the Cardano blockchain, providing a secure and efficient platform for artists, collectors, and investors to trade NFTs. Since its inception, JPG Store has grown to become the most influential NFT platform in the Cardano ecosystem, attracting numerous users and project teams.

Core Features

• NFT Marketplace: JPG Store supports NFT purchases, sales, and auctions, with all transactions conducted in ADA (Cardano’s native token). The platform offers a one-click listing feature, allowing sellers to quickly list their NFTs.
• Wallet Compatibility: JPG Store is compatible with multiple Cardano wallets such as Nami, Eternl, Flint, and GeroWallet, ensuring seamless connection and easy asset management.
• Smart Contract Support: Powered by Cardano’s smart contract technology, JPG Store ensures transaction transparency and security, eliminating reliance on intermediaries.
• Bulk Listings and Bundle Sales: JPG Store supports bulk listing and batch purchases, improving trading efficiency for NFT collectors and high-volume traders.
• Creator Royalties and Incentives: JPG Store supports the CIP-0027 royalty standard, allowing creators to set royalty percentages, ensuring they earn revenue from every secondary market sale.
• Advanced Filtering and Search: Users can explore NFTs efficiently using various filters such as floor price, trading volume, rarity, and popularity

Platform Fees

• Transaction Fee: JPG Store charges a 2% fixed commission on each NFT transaction.
• Royalty Fee: Distributed to creators based on the NFT project’s royalty settings.
• Network Fees: Fees vary depending on network congestion, though Cardano’s transaction costs remain relatively low overall.

Supported NFT Categories

• Artworks: Digital illustrations, generative art, photography, and more.
• PFP Projects: Popular collections such as Clay Nation, SpaceBudz, and The Ape Society.
• Gaming Assets: In-game characters, items, and virtual land.
• Music and Media: Digital music, video NFTs, and other creative content.

Future Development Plans

• Decentralized Governance (DAO): JPG Store is exploring community-driven governance mechanisms to enhance user involvement.
• Cross-Chain Interoperability: Plans are underway to enable cross-chain NFT transactions with blockchains like Ethereum and Polygon.
• NFT Minting Tools: JPG Store aims to simplify the NFT minting process for creators, lowering the entry barrier.
• Mobile Support: Development is in progress for dedicated iOS and Android applications to improve accessibility and user experience.

As a flagship NFT platform in the Cardano ecosystem, JPG Store offers users a fast, secure, and cost-effective NFT trading experience while contributing significantly to the growth of the Cardano NFT ecosystem. Whether you’re an artist, collector, or investor, JPG Store is the go-to platform for exploring and engaging with Cardano NFTs. With ongoing feature enhancements and ecosystem expansion, JPG Store is poised to establish a stronger presence in the global NFT marketplace.

JPG Store Website: https://www.jpg.store/

JPG Store Twitter: https://x.com/jpgstorenft

Cornucopias

Project Overview

Cornucopias is a metaverse project built on the Cardano blockchain, with additional support for Polygon and Binance Smart Chain. It combines Play-to-Earn (P2E), Build-to-Earn (B2E), and Learn-to-Earn (L2E) mechanics, allowing players to create assets, complete tasks, and earn rewards. Developed using Unreal Engine 5, Cornucopias offers high-quality 3D graphics and robust cross-platform compatibility.

Cornucopias aims to build an immersive and diverse virtual world where players can purchase land, construct assets, engage in economic activities, and leverage NFT economies and DAO governance for decentralized management.

Core Features

• The Island — Game World: The metaverse is divided into multiple themed zones such as Solace (eco-friendly region), Esperanza (technological city), and Fortune (adventure zone).
• Play-to-Earn (P2E): Players can earn rewards by completing tasks, challenging other players or AI, collecting resources, defeating monsters, and exploring ruins.
• Build-to-Earn (B2E): Players can create NFT assets such as houses, shops, and factories, which can be sold or traded.
• Learn-to-Earn (L2E): The platform offers educational content on blockchain, game development, and NFT economies, rewarding learners with tokens.
• NFT Economy: Includes Land NFTs (for purchasing virtual land), Vehicle NFTs (for exploration and racing), and Character NFTs (tradable and upgradeable).
• Multi-Chain Support: Cornucopias is built on Cardano while supporting Polygon and BSC, ensuring cross-chain NFT transactions.

Tokenomics & Market Performance

• $COPI Token: Used for NFT transactions, land rental payments, rewards, and community governance. Total supply: 3.84 billion tokens.
• NFT Assets: Includes land, aircraft, vehicles, and other in-game items, which can be traded within the Cornucopias platform or secondary marketplaces such as OpenSea, JPG Store, and CNFT.io.

Development Progress & Future Plans

• Current Progress: Completed multiple NFT sales, Alpha version available for testing, and established partnerships with various blockchain ecosystems.
• 2025 Goal: Launch a fully open multiplayer world, refine economic and quest systems, and introduce VR and AI technologies to enhance immersion.

As a flagship metaverse project within the Cardano ecosystem, Cornucopias combines high-quality 3D visuals, a Play-to-Earn economic model, multi-chain compatibility, and NFT-driven content creation. With the continuous expansion of The Island and the addition of educational and UGC content, Cornucopias has the potential to become a major player in the blockchain gaming and metaverse industry.

Cornucopias Website: Cornucopias.io

Cornucopias Twitter: https://twitter.com/CornucopiasGame

Pavia

Project Overview

Pavia is the first metaverse project on the Cardano blockchain, named after the Italian city Pavia, the birthplace of mathematician Gerolamo Cardano. The project aims to build a cross-chain, cross-platform 3D virtual world that offers immersive social, creative, and economic activities, allowing users to own, develop, and trade virtual land in the form of NFTs.

Pavia leverages Web3 and decentralized technologies to ensure users have full control over their virtual assets. With its focus on cross-chain interoperability, Pavia is designed to evolve into an open metaverse ecosystem.

Core Features

• Virtual World - Pavia World
  • 100,000 Land NFTs: Users can purchase, develop, and trade virtual land, with each plot represented as a unique NFT on the blockchain.
  • Decentralized 3D Metaverse: Built using Unreal Engine 5, Pavia delivers a high-quality visual experience, supporting player social interactions, exploration, and construction.
  • Open Economic System: Users can create virtual stores, brands, art galleries, entertainment zones, and more to foster a Web3-driven economy.
• Pavia Studio - User-Generated Content (UGC)
  • Low-Entry Creation Tools: Pavia provides user-friendly 3D modeling and editing tools, allowing users to create virtual assets without coding skills.
  • NFT Asset Integration: Users can import externally created 3D assets, such as clothing, buildings, and decorations, into Pavia World.
• Pavia Hubs - Cross-Chain Social Hubs
  • Metaverse Connectivity: Enables users from different metaverse platforms to interact within a shared virtual space, supporting identity switching across blockchain ecosystems.
  • Social, Business, and Entertainment Hubs: Users can participate in events such as conferences, exhibitions, virtual parties, and concerts.
• Pavia Explorers & Corp
  • Metaverse-as-a-Service (MaaS): Pavia is developing infrastructure to help enterprises and developers create their own metaverse experiences.
  • Enterprise Solutions: Offers metaverse technology support for brands, game developers, and DAOs.

Tokenomics

• $PAVIA Token: Used for land purchases, asset transactions, community governance, and in-game economic systems. Total supply: 2 billion tokens.
• Land NFTs: Total of 100,000 land plots available for ownership and trade

Development Progress & Future Plans

• Current Progress:
  • Completed land sales with 100,000 NFTs distributed to various users.
  • Launched Pavia Studio, allowing users to create and import 3D assets.
  • Developed Pavia Hubs to expand cross-chain interoperability.
  • Introduced smart contract-based land transactions to improve market liquidity.
• Future Plans:
  • Multiplayer Social Features: Add real-time interaction, voice chat, and virtual events.
  • Smart Contract Economy System: Enable users to build decentralized shops, rentals, and advertisements.
  • Enhanced Cross-Chain Integration: Expand connectivity with Ethereum, Polkadot, and Solana to improve cross-chain experiences.
  • Enterprise Metaverse Solutions: Attract more brands to join and explore virtual office spaces, exhibitions, and marketing strategies.
  • AI Integration: Introduce AI-driven NPCs and smart assistants to enhance immersion.

As the first and one of the most recognized metaverse projects in the Cardano ecosystem, Pavia offers strong technical advantages, decentralized ownership, and a Web3 economic model. By integrating NFT asset ownership, user-generated content, and cross-chain interaction, Pavia is actively driving the future of blockchain metaverses.

With the expansion of Pavia Studio, Pavia Hubs, and multiplayer social features, the project is positioned to become a major player in the metaverse industry, potentially competing with established platforms such as Decentraland and The Sandbox.

Pavia Website: pavia.io

Pavia Twitter: https://x.com/Pavia_io

NFT metaverses are driving the digital economy toward a decentralized, immersive experience, and user-driven model. Projects like Pavia, Cornucopias, and JPG Store in the Cardano ecosystem showcase the innovative potential of NFTs in areas such as virtual real estate, gaming economies, art collections, and digital transactions.

Although the NFT metaverse is still in its early stages, advancements in technology, cross-chain interoperability, and user growth are rapidly accelerating its maturity. With its low transaction costs, high scalability, and smart contract support, Cardano is shaping a more open and sustainable virtual world, paving the way for greater innovation and opportunities in the future.

Supply Chain and Logistics

In today’s increasingly complex global supply chains, ensuring product traceability, improving logistics efficiency, and enhancing consumer trust have become core concerns for various industries. Blockchain technology, with its decentralization, immutability, and transparency, is bringing revolutionary changes to supply chain management. As a next-generation blockchain platform, Cardano is demonstrating strong application potential in sectors such as agriculture, food safety, and logistics. Notable examples include the Agrot project and the Georgian Wine Traceability project, which leverage Cardano technology for agricultural asset management and product traceability. These projects not only optimize agricultural supply chains but also utilize smart contracts and distributed ledger technology to achieve end-to-end traceability from production to consumer, improving trust and efficiency in the industry like never before.

Agrot

Project Overview

Agrot Cardano is an agricultural technology ecosystem built on the Cardano blockchain, combining blockchain, Internet of Things (IoT), and Artificial Intelligence (AI) to optimize agricultural supply chain management, improve crop cultivation transparency, and create new value models for farmers and investors. Its core objective is to provide digital management of agricultural assets through blockchain technology and establish a decentralized agricultural investment and traceability system.

Core Features

Agrot focuses on multiple aspects of the agricultural value chain, offering the following core functionalities:

• Agricultural Asset Tokenization
  The project plans to issue digital tokens backed by agricultural production assets, enabling investors to invest directly in farming operations. The current pilot project is focused on premium mango production, with plans to expand to other agricultural products in the future.

• Smart Farm Management
  By deploying IoT devices, Agrot monitors real-time data such as soil moisture, temperature, and sunlight levels, with this data securely stored on the Cardano blockchain to ensure transparency and immutability. Utilizing AI analytics, Agrot optimizes agricultural decision-making, improving crop yield and quality.

• Traceability and Supply Chain Transparency
  Agrot records all farming and management activities, covering the entire process from planting, harvesting, transportation, to sales. Farmers, investors, and consumers can verify the origin, quality, and supply chain status of agricultural products through public blockchain records.。

• NFT-Based Agricultural Asset Management
  The production process of farms and crops is recorded as NFTs (Non-Fungible Tokens), ensuring the uniqueness and authenticity of each batch of agricultural products. These NFTs also act as agricultural investment certificates, providing a transparent mechanism for revenue sharing.

Ecosystem Operation Model

The Agrot Cardano ecosystem adopts a decentralized agricultural model involving multiple stakeholders:

• Farmers: Can publish agricultural production plans on the platform and obtain financial support through tokenization.
• Investors: Can purchase tokens backed by agricultural assets, investing directly in crop cultivation and earning revenue after harvest.
• Consumers: Can verify the origin of agricultural products via blockchain, ensuring food safety and supply chain transparency.

Goals and Future Development

Agrot Cardano’s primary objectives are to:

• Enhance agricultural supply chain transparency, reducing intermediaries and increasing farmers’ incomes.
• Promote decentralized agricultural finance (DeFi for Agriculture), enabling investors to directly support farming operations.
• Utilize blockchain, IoT, and AI to improve agricultural asset management and enhance crop cultivation efficiency.
• Expand to a wider range of agricultural products, including high-value crops like coffee and cocoa beyond mango farming.

The project’s innovative approach combines blockchain technology with IoT devices, creating a new model for agricultural investment and management. This brings improved efficiency, transparency, and returns to the global agricultural sector.

Agrot Website: https://agrotcardano.com/en/

Agrot Twitter: https://x.com/AGROT_SP

Georgian Wine Traceability

Project Overview

The Georgian Wine Traceability project is a blockchain-based traceability system launched through a collaboration between the National Wine Agency of Georgia, the Cardano Foundation, the Bolnisi Wine Association, and Scantrust. This project aims to enhance the transparency and credibility of Georgian wine by leveraging Cardano’s decentralized and immutable blockchain technology. By ensuring that each bottle of wine’s origin and production process can be accurately tracked, the system combats counterfeit products and safeguards Georgia’s global reputation as the “Cradle of Wine”.

Project Background and Objectives

Georgia boasts over 8,000 years of winemaking history, making it one of the world’s oldest wine-producing regions. However, with rising global demand for Georgian wine, counterfeit products have increasingly emerged, damaging the country’s international image. To address this challenge, the project’s key objectives include:

• Combating counterfeit wines to protect local winemakers.
• Enhancing supply chain transparency by ensuring end-to-end traceability from vineyard to consumer.
• Building consumer trust by providing reliable product certification and historical records.

Core Features

• Blockchain Traceability System

Each bottle of wine is equipped with a unique QR code, allowing consumers to scan the code with their smartphone to access detailed historical data about that specific bottle. The information includes:

• Vineyard location and farm details.
• Harvesting and winemaking processes, including production timelines.
• Logistics and transportation tracking to trace the wine’s journey.
• Certification and awards information ensuring quality standards.

All data is securely stored on the Cardano blockchain, ensuring transparency and security. Once recorded, the data cannot be altered or manipulated, effectively eliminating risks of forgery or data tampering.

• Support for Small-Scale Wineries

This traceability system is designed to empower small-scale and family-run wineries in Georgia, helping them build a strong brand presence in international markets and compete fairly on a global stage.

Technical Partners

• Cardano Foundation: Provides blockchain technology support to ensure secure and transparent data storage.
• Scantrust: Develops the QR code anti-counterfeit technology, ensuring product labels remain unique and secure.
• Bolnisi Wine Association: Facilitates the project’s local implementation, encouraging participation from small wine producers.

Achievements and Future Development

Since its launch, the project has successfully onboarded dozens of Georgian wineries, covering tens of thousands of wine bottles in production and sales. The traceability system has significantly improved the recognition of Georgian wine in European and Asian markets, helping these brands penetrate premium wine sectors. In the future, the project plans to expand traceability solutions to additional agricultural products such as honey, olive oil, and other specialty foods, building a comprehensive food traceability ecosystem.

Cardano’s application in the supply chain and logistics sector demonstrates its powerful technical potential and practical value. Whether it’s the Agrot project, which leverages blockchain, IoT, and AI to optimize agricultural asset management, or the Georgian Wine Traceability project, which improves product traceability and strengthens brand credibility, Cardano has successfully empowered traditional industries and advanced the digital transformation of supply chains.

These initiatives not only improve data transparency and product traceability but also enhance consumer trust, optimize investment models, and create new growth opportunities for small-scale producers. As blockchain technology continues to mature, Cardano is poised to play a vital role in improving global trade transparency and efficiency, becoming a key enabler of innovation in cross-industry supply chain management.

Education

In the rapidly evolving digital age, blockchain technology is emerging as a core force driving global economic, technological, and social transformation. However, complex technical barriers and knowledge gaps still prevent many individuals from fully understanding and applying this revolutionary technology. To address this challenge, the Cardano Foundation has launched Cardano Academy — a global education platform dedicated to spreading blockchain knowledge, nurturing technical talent, and promoting innovative applications.

Next, we will explore Cardano Academy’s core objectives, curriculum system, global impact, and how to participate in this exciting educational project, opening your gateway to connect with blockchain’s future.

Cardano Academy

Cardano Academy is an educational initiative launched by the Cardano Foundation, designed to increase public awareness of blockchain technology and improve understanding of the Cardano (ADA) ecosystem. This project targets businesses, developers, students, and blockchain enthusiasts, providing structured and professional learning resources.

Project Background

The primary goal of Cardano Academy is to promote global education on blockchain technology, encouraging the adoption of Cardano in diverse industries such as FinTech, supply chain management, and identity verification. Through this initiative, the Cardano Foundation aims to bridge the global blockchain knowledge gap, helping more people understand the concepts and technologies behind blockchain.

Core Objectives

• Spreading Blockchain Fundamentals: Help beginners grasp core blockchain concepts, operating mechanisms, and industry trends.
• Promoting the Cardano Ecosystem: Provide in-depth knowledge about Cardano’s technical architecture, Ouroboros consensus mechanism, and Plutus smart contract platform.
• Training Blockchain Developers: Offer development tools and programming courses to empower developers in building decentralized applications (dApps) on Cardano.
• Supporting Enterprise Blockchain Adoption: Provide solutions and training to guide businesses on integrating blockchain into existing processes.

Key Features

Modular Curriculum System:

• Foundation Courses: Cover blockchain history, decentralization principles, and cryptocurrency basics.
• Technical Courses: Focus on the Haskell programming language, Plutus smart contract development, and the Marlowe financial contract language.
• Industry Applications: Showcase practical use cases for Cardano in sectors such as finance, education, and supply chain management.
• Multilingual Support: Courses are available in multiple languages, including English, Spanish, French, and German, ensuring accessibility for learners worldwide.
• Certification System: Upon completion, students receive an official Cardano certification, boosting their credibility and competitiveness in the blockchain industry.
• Blended Learning Approach: The Academy offers both online learning resources and hosts offline workshops, hackathons, and tech exchange events worldwide.

Global Impact:

Cardano Academy has established partnerships in multiple countries and regions, particularly in Africa, Europe, and Asia. By collaborating with universities, businesses, and government institutions, Cardano Academy is driving blockchain adoption on a global scale.

• Africa Initiative (Cardano Africa): Partnered with the Ethiopian Ministry of Education to provide 5 million students with blockchain-based digital identity solutions.
• European Partnerships: Collaborated with leading universities to establish blockchain research centers, bridging the gap between academic research and industry applications.

Cardano Academy is not just an educational platform; it is a powerful force advancing blockchain awareness and supporting the growth of the Cardano ecosystem. Whether you are a newcomer exploring blockchain fundamentals or a developer looking to master Cardano technologies, Cardano Academy offers invaluable learning resources and growth opportunities.

Cardano Academy Website: https://academy.cardanofoundation.org/

Identity Verification

Atala PRISM

Project Overview

In the digital age, identity management has become a key concern globally. Traditional centralized identity systems rely on authorities such as governments, corporations, or social platforms, posing risks such as data breaches, insufficient privacy protection, and identity theft. To address these issues, Atala PRISM was developed by Input Output Global (IOG) as a decentralized identity solution (Self-Sovereign Identity, SSI) within the Cardano ecosystem. Atala PRISM aims to provide individuals, businesses, and governments with a secure, efficient, and self-sovereign digital identity management solution.

The vision behind Atala PRISM is to ensure that everyone globally has ownership and control over their digital identity, without relying on centralized entities. Its core objective is to empower individuals with self-sovereign identity, enabling users to securely store, manage, and share their identity information without exposing sensitive data. By leveraging blockchain technology, Atala PRISM introduces innovative features that make digital identity management more transparent, verifiable, and scalable.

Technical Architecture

Atala PRISM is built on the Cardano blockchain, taking advantage of Cardano’s security, scalability, and low transaction costs. By utilizing decentralized identity (DID) and verifiable credentials (VC), Atala PRISM ensures secure storage and management of identity data. The key technical components of Atala PRISM include:

• Decentralized Identity Identifiers (DID): Based on the W3C DID standard, this allows users to create, manage, and securely store their digital identity without relying on centralized databases.
• Verifiable Credentials (VCs): VCs enable users to share verified identity data with institutions or individuals without disclosing unnecessary personal information, improving data credibility.
• Zero-Knowledge Proofs (ZKP): By employing advanced cryptography, ZKP allows users to prove specific information (e.g., being over 18 years old) without revealing complete identity details.
• Decentralized Identity Wallet: Users can store, manage, and share their identity information using the Atala PRISM App or compatible wallets.
• Cardano Blockchain Storage: Atala PRISM leverages Cardano’s blockchain to record metadata related to identity credentials, ensuring data integrity and immutability.

Through these technical components, Atala PRISM establishes a secure, efficient, and user-controlled identity management system, empowering users to take ownership of their digital identity in the Web3 era.

Data Privacy and Security

Atala PRISM employs Zero-Knowledge Proofs (ZKP) and advanced encryption protocols to ensure the privacy and security of identity data. Instead of storing user data on centralized servers, Atala PRISM enables users to manage their own information, ensuring that identity data is shared with third parties only with user authorization. This self-sovereign model minimizes risks of data breaches and unauthorized access. Furthermore, Cardano’s Proof-of-Stake (PoS) consensus mechanism provides a high-security, low-energy blockchain infrastructure, ensuring the identity verification process is both secure and scalable.

Atala PRISM’s identity verification system complies with international standards such as W3C, Hyperledger Aries, and the Decentralized Identity Foundation (DIF). This ensures Atala PRISM can achieve cross-chain and cross-application interoperability, enhancing its adaptability in diverse blockchain environments.

Use Cases

Atala PRISM is designed for multiple industries, particularly those requiring identity verification, secure record storage, and data privacy protection. Key application areas include:

• Education Sector: In partnership with the Ethiopian government, Atala PRISM has provided 5 million students with decentralized academic credentials. This system prevents diploma forgery and ensures that employers and institutions can quickly verify applicants’ academic backgrounds. Universities and online education platforms can issue verifiable digital certificates through Atala PRISM, reducing the risk of credential fraud.
• Financial Services (Banking & DeFi): Banks, lending platforms, and DeFi projects can utilize Atala PRISM for KYC/AML (Know Your Customer/Anti-Money Laundering) identity verification processes. This enhances financial security while reducing the need for users to repeatedly submit identification documents, streamlining onboarding.
• Healthcare Sector: Electronic Health Records (EHR): Atala PRISM allows patients to control their medical data and selectively grant secure access to hospitals or healthcare providers when required. This ensures sensitive health information remains private and secure.
• Supply Chain & Logistics: By integrating decentralized identity technology, Atala PRISM helps verify the authenticity of product origins, improving supply chain transparency. This is especially effective in industries such as food, pharmaceuticals, and luxury goods, where traceability is crucial.
• Government & Public Services:
  • Decentralized Passports & Digital IDs: Governments can use Atala PRISM to issue citizen IDs, enabling individuals to prove their identity securely without relying on centralized databases.
  • Electronic Voting Systems: Atala PRISM can ensure voter identity authenticity while preserving voter anonymity, mitigating the risk of electoral fraud.

Public Welfare and Social Impact (e.g., Sustainable Development, Social Responsibility Projects)

Socious

Project Overview

Socious is a blockchain-based social impact platform built on the Cardano blockchain. Its core mission is to leverage decentralized technology to connect like-minded individuals, organizations, and projects to foster social innovation and promote sustainable development. By empowering individuals and businesses to drive positive social change globally, Socious aims to create a more inclusive and transparent global community.

Core Features

In advancing social innovation, Socious offers a range of powerful and flexible features designed to help users connect, collaborate, and create value more effectively. These features not only emphasize technological advantages but also focus on improving user experience and promoting community engagement.

• Social Impact Marketplace: Socious enables users to discover, participate in, and support social projects aligned with their values. This marketplace covers various areas such as environmental protection, education, healthcare, and more. By connecting socially responsible individuals and businesses, Socious provides a platform for showcasing and amplifying their impact.
• Decentralized Identity (DID): Leveraging Cardano’s decentralized identity technology, Socious ensures the privacy and security of user data while enabling seamless identity verification across different platforms. DID technology empowers users to have full control over their personal data, reducing the risk of information leaks and enhancing security.
• Incentive Mechanism: Socious introduces a token-based reward system that incentivizes users to actively participate in and support social projects. By rewarding meaningful contributions, this mechanism enhances community engagement and encourages sustained participation, fostering a positive feedback loop within the platform.
• Transparency and Traceability: Socious leverages blockchain’s transparent and immutable characteristics to ensure that every donation or investment can be tracked, increasing accountability and trust. This traceability not only improves the transparency of fund utilization but also reinforces the platform’s credibility.

Technical Architecture

Socious has chosen Cardano as its infrastructure due to Cardano’s high scalability, low energy consumption, and powerful smart contract capabilities (Plutus). Cardano’s Ouroboros consensus mechanism ensures network security and sustainability, providing Socious with a stable and efficient technical foundation.

Token Model

• SOC Token: SOC is Socious’s native utility token, playing a vital role in the platform’s reward system, payment processes, and governance structure. By utilizing SOC tokens, Socious incentivizes users to actively participate and contribute to the development of the community.
• Governance Mechanism: SOC holders can participate in platform governance by voting on key decisions about the platform’s future, ensuring community governance remains decentralized and transparent.

Use Cases

In a rapidly changing global society, Socious provides diverse solutions designed to promote positive social change through technology and community engagement. Whether individuals, corporations, or non-profit organizations, Socious offers valuable opportunities to foster impactful initiatives.

• Social Impact Investment: Investors can directly support sustainable development projects, achieving both financial returns and positive social impact. This model empowers investors to pursue a win-win approach by combining economic benefits with meaningful social contributions.
• Corporate Social Responsibility (CSR): Businesses can showcase their CSR projects on the Socious platform to enhance their brand image and attract socially conscious consumers and partners.
• Volunteer Network: Socious connects individuals with volunteer opportunities that align with their values and interests. By engaging in global social innovation, individuals can contribute positively to society while expanding their network and skills.

Community

Socious emphasizes community-driven growth, regularly hosting online and offline hackathons, workshops, and seminars to encourage collaboration between global innovators. The platform’s commitment to fostering an inclusive and diverse community remains a key driver of continuous innovation and development.

Future Roadmap

Looking ahead, Socious aims to expand its global influence and strengthen the integration between technology and social innovation. Through continuous platform improvements and new strategic partnerships, Socious seeks to establish itself as a global leader in social impact platforms, empowering individuals, organizations, and communities to create meaningful, lasting change.

• Global Market Expansion: Socious aims to broaden its impact by engaging non-profits, social enterprises, and individuals worldwide to collaborate on positive social transformation.
• Deeper Collaboration with Cardano Ecosystem Projects: Socious is actively exploring cross-chain integration and building strategic partnerships with other blockchain projects to improve interoperability and innovation.
• Enhanced User Experience: The platform will continue refining its interface, expanding blockchain-based tools for social innovation, and improving user engagement and satisfaction.

Socious’s vision is to build a more inclusive, transparent, and sustainable global society by leveraging technology and community engagement to drive meaningful social change. Socious believes that technology is not just a tool, but a powerful bridge that connects people through shared human values.

Socious Website: https://socious.io/

Infrastructure

In the Cardano ecosystem, powerful development tools are key to accelerating the growth of decentralized applications (dApps) and smart contracts. As Cardano’s technology continues to mature, an increasing number of tools have been developed to enhance development efficiency, reduce technical barriers, and optimize on-chain performance. This chapter will focus on two influential tools in the Cardano development landscape: Aiken and Blockfrost. Aiken is a smart contract development language specifically designed for Cardano, renowned for its simplicity, efficiency, and security. Blockfrost is a powerful API service platform that helps developers interact easily with the Cardano blockchain. Through an in-depth analysis of these two tools, we will gain a comprehensive understanding of how to build high-performance blockchain applications on Cardano.

Aiken

Project Overview

Aiken is a modern smart contract development language and toolchain designed for the Cardano blockchain, aimed at improving development efficiency, enhancing code security, and lowering the technical barriers to smart contract development. As a key component of the Cardano ecosystem, Aiken combines clean syntax, a high-performance compiler, and a powerful type system, enabling developers to efficiently build decentralized applications (dApps) and smart contracts.

Key Features

Aiken is designed to provide developers with a concise, efficient, and secure smart contract development experience, with key features including:

• Intuitive and Simple Syntax: Inspired by modern programming languages like Rust and Elixir, Aiken offers clear and readable syntax, reducing the learning curve for developers.
• High Performance and Low Cost: The compiled code is optimized for Cardano’s Plutus Core, significantly reducing on-chain resource consumption and transaction fees.
• Robust Type System: Aiken features a static strong-type checking mechanism that detects potential errors during compilation, improving code accuracy and reliability while minimizing common vulnerabilities.
• Modular Development Support: Aiken supports a modular architecture, facilitating code reusability and maintenance, enhancing team collaboration and scalability.
• No Haskell Environment Required: Aiken eliminates the need for complex Haskell toolchain configurations, lowering the technical barrier and making it accessible to a broader range of developers.

Technical Advantages

Beyond its excellent development experience, Aiken’s technical foundation ensures enhanced performance and security for smart contracts:

• Efficiency: Optimized Plutus Core code ensures that smart contracts run with high performance on the Cardano blockchain.
• Security: With its strong type system and static analysis, Aiken reduces the risk of vulnerabilities, making it suitable for finance-grade applications.
• Scalability: Aiken’s modular design supports large-scale dApp development, meeting complex business requirements.
• Convenience: By eliminating the need for a Haskell environment, Aiken simplifies the development process and encourages more developers to contribute to the Cardano ecosystem.

Use Cases

Aiken is versatile and ideal for various Cardano-based smart contract applications:

• DeFi Protocols: Suitable for developing decentralized exchanges (DEXs), lending platforms, and stablecoin contracts.
• NFT Applications: Supports NFT minting, trading, and management.
• DAO (Decentralized Autonomous Organization): Enables on-chain governance, voting systems, and automated decision-making processes.
• Supply Chain Management: Ensures data transparency and traceability for logistics and product tracking.
• Identity Verification and Authentication: Enables secure, blockchain-based digital identity verification systems, enhancing data security.

Aiken is rapidly emerging as one of the most promising smart contract languages in the Cardano ecosystem, with strong community support and growing adoption. As Cardano continues to evolve, Aiken plays a pivotal role in enhancing developer experience, reducing technical barriers, and improving on-chain performance. With an active developer community, comprehensive tutorials, and ongoing updates, Aiken is becoming a mainstream choice for Cardano smart contract development.

Aiken Website: https://aiken-lang.org/

Blockfrost

Project Overview

Blockfrost is an API service platform designed to simplify interactions with the Cardano blockchain, enabling developers to efficiently build decentralized applications (dApps), smart contracts, wallets, and more. Developed by the dcSpark team, Blockfrost supports Cardano, IPFS, and plans to expand to other blockchain networks in the future.

Core Features

Blockfrost provides a comprehensive and flexible set of features designed to help developers seamlessly interact with the Cardano blockchain and its ecosystem, meeting development needs across different scenarios.

• Cardano API Interface: Blockfrost offers a powerful RESTful API that allows developers to interact with the Cardano blockchain without running a full node.
  • Query on-chain data: account balances, transaction history, block information, etc.
  • Transaction operations: submit transactions, check transaction status
  • Asset management: retrieve native asset (NFT, token) information

• IPFS API Support: In addition to Cardano, Blockfrost supports IPFS (InterPlanetary File System), making it convenient for developers to store decentralized files, such as NFT metadata or images.

• Multi-language SDKs: To accommodate developers with different technology stacks, Blockfrost provides SDKs in multiple programming languages, including: JavaScript/TypeScript, Python, Haskell, Rust. This significantly reduces development complexity and suits developers from various technical backgrounds.

• WebSocket Real-time Updates: Supports WebSocket subscription mechanisms, enabling DApp developers to monitor on-chain events like blocks and transactions in real-time, suitable for real-time data updates in wallets and trading platforms.

Usage Process

Using Blockfrost is simple and efficient, making it ideal for quickly launching projects and easily interacting with Cardano blockchain data.

1. Register an Account: Sign up at Blockfrost.io and create a project.
2. Obtain an API Key: Each project is assigned a unique API Key, which must be included in all API requests for authentication.
3. Integration and Development: Use the provided REST API or SDK to develop your Cardano-based dApp, enabling fast and secure interaction with on-chain data.

Use Cases

Blockfrost is widely used in various Cardano-based decentralized application development scenarios, including finance, art, data analytics, and more.

• Decentralized Wallets: Using Blockfrost’s API, developers can quickly build wallets capable of fetching account balances, transaction history, and asset details — without the need to run a full Cardano node.
• NFT Platforms: Blockfrost enables seamless management of NFT assets, metadata storage (via IPFS), and transaction operations.
• DeFi Protocols: Blockfrost helps DeFi platforms fetch on-chain data in real time, track key blockchain events, and maintain system integrity.
• Data Analytics Tools: Blockfrost provides data feeds for blockchain explorers, data visualization platforms, and other tools requiring real-time blockchain insights.

Advantages and Features

Blockfrost’s core strengths lie in its powerful features and high reliability, allowing developers to focus on building innovative applications without being burdened by complex blockchain infrastructure.

• No Node Setup Required: Saves development and operational costs
• High Availability: Distributed architecture ensures API stability and high performance
• Simple to Use: Rich documentation and SDKs for quick adoption
• Supports Testnet and Mainnet: Convenient for developing and deploying applications at different stages

As a powerful API service platform, Blockfrost provides a simple, efficient, and reliable solution for on-chain data interaction in the Cardano ecosystem. Complementing tools like Aiken, Blockfrost empowers developers to build, test, and deploy Cardano dApps effectively. With the continuous advancement of Cardano’s technology, Blockfrost is poised to become an indispensable tool for developers, driving blockchain innovation and fostering broader adoption.

Project Catalyst

Project Overview

Project Catalyst is a decentralized innovation fund platform within the Cardano blockchain ecosystem, designed to drive decentralized governance and community-led ecosystem growth. As part of Cardano, developed by IOHK (Input Output Hong Kong), Project Catalyst encourages global community members to propose, discuss, vote, and fund projects that have the potential to enhance the Cardano ecosystem. By harnessing the collective intelligence and strength of its global community, Project Catalyst supports innovative ideas and promising projects, helping Cardano evolve into a more open, inclusive, and innovative platform.

Core Mechanism

Project Catalyst’s core mechanism includes five key stages, covering the full process from project ideation, evaluation, and decision-making to fund distribution and project monitoring, embodying the principles of decentralized governance.

• Proposal Submission: Developers, entrepreneurs, and community members can submit innovative ideas or project proposals. These proposals may cover various fields such as DeFi, NFTs, infrastructure, education, and more.
• Community Assessment: After submission, Community Advisors review the proposals, evaluating aspects such as feasibility, impact, cost-effectiveness, and alignment with the Cardano ecosystem.
• Voting Stage: ADA holders can participate in voting to decide which projects will receive funding. Voting is based on decentralized governance principles, ensuring decision-making power is distributed among the global community.
• Fund Distribution: Proposals that gain majority support are granted funding from Project Catalyst’s treasury, which is primarily sourced from Cardano’s financial reserves.
• Project Monitoring: Funded projects are required to provide regular progress updates to the community to ensure transparency and accountability.

Funding Rounds

Project Catalyst operates in funding rounds known as Funds, with each round focusing on distinct themes and challenges. For example:

• Fund 10: Focused on improving Cardano’s scalability and utility.
• Fund 11: Focused on fields such as Web3, DeFi, DAOs, and cross-chain interoperability.

Each funding round varies in budget, ranging from millions to tens of millions of dollars, with funding amounts increasing as the ecosystem expands.

Success Stories

• Marlowe: A smart contract platform designed for financial contracts, which received funding through Project Catalyst and has become an important component of the Cardano ecosystem.
• Gimbalabs: Focused on developer education, Gimbalabs offers courses on smart contract and dApp development, contributing to the growth of the Cardano developer community.

How to Participate

• As a Proposer: Submit project ideas and apply for community funding. Proposers can be individuals, teams, or organizations. By presenting a detailed project plan, expected outcomes, and budget requirements, proposers can seek community support.
• As a Community Advisor: Participate in assessing project proposals and provide professional insights. Community Advisors are responsible for evaluating the quality, feasibility, and potential impact of proposals. They are expected to remain objective and fair, ensuring reliable evaluation results that guide the community in making informed decisions.
• As a Voter: ADA holders can vote directly on proposals, participating in ecosystem governance. Voters are not only decision-makers but can also actively engage in proposal discussions, offer improvement suggestions, and enhance the overall democracy and effectiveness of governance.
• As a Mentor or Advisor: Provide professional guidance and advice to proposal teams, helping optimize project execution strategies and improve success rates.

Project Catalyst is not just an innovation fund; it is also a platform that embodies Cardano’s decentralized governance model. By enabling ADA holders to participate in ecosystem decision-making, Project Catalyst ensures that the power to shape Cardano’s future is distributed across the global community. By offering financial support, Project Catalyst empowers developers and entrepreneurs to turn ideas into reality, driving innovation within the Cardano ecosystem.

Whether you are a developer, entrepreneur, or an active community member, Project Catalyst provides a unique opportunity for you to contribute, collaborate, and promote the advancement of blockchain technology.

Project Catalyst Website: https://cardanocataly.st/en/faq/#important-documents

Cardano vs Mainstream Public Blockchains

As one of the third-generation blockchains, Cardano exhibits notable differences compared to other major blockchains like Ethereum, Solana, Sui, and BSC in terms of ecosystem scale, DeFi development, and community engagement. This section provides a comparative analysis of Cardano’s strengths, weaknesses, and potential competitive direction for the future.

Community Size Comparison

The size and activity of a blockchain’s community are crucial for attracting developers and users, directly influencing the sustainability, funding flow, and expansion speed of its ecosystem. A strong and active community not only drives technical innovation but also generates a network effect, attracting more projects, investors, and end users. The following comparison examines the community size of Cardano, Ethereum, Solana, and Sui both online and offline.

Table 2: Online and Offline Community Comparison

Community Comparison Analysis:

• Ethereum has the largest community size, with the highest number of Meetup groups and Twitter followers, making it the most mature ecosystem.
• Cardano has a significantly higher number of Meetup communities compared to Solana and Sui, yet its Twitter influence is far weaker than that of Ethereum and Solana. This indicates that Cardano’s community leans more toward long-term supporters rather than short-term market trends.
• Sui’s Twitter followers (963K) exceed those of Cardano (837K), suggesting that Sui has a stronger advantage in marketing and new user acquisition.

Overall, Cardano has a stronger offline community presence compared to Solana and Sui. However, its market influence on social platforms like Twitter is relatively weaker, indicating the need to enhance its online community building and user engagement strategies.

Ecosystem Development Comparison

The prosperity of a public blockchain ecosystem is typically measured by factors such as the number of protocols, TVL (Total Value Locked), DEX trading volume, and the development of liquid staking (LSD) solutions.

Table 3: Ecosystem Development Comparison

Figure 8: Protocol Quantity Comparison

Figure 9: TVL Trend Analysis

TVL Analysis

From the data, it is evident that Cardano’s TVL significantly lags behind Solana, BSC, and Sui, accounting for less than 5% of Solana’s TVL. This indicates that Cardano’s DeFi ecosystem remains relatively weak in terms of total value locked.

Based on historical data:

• 2023: Cardano’s TVL remained low throughout 2023, consistently staying below $100M, indicating that its DeFi ecosystem was still underdeveloped with insufficient capital inflows.
• Early 2024: Cardano’s TVL began to recover, likely driven by DeFi ecosystem expansion, overall market recovery, or the launch of new protocols within the Cardano ecosystem.
• Early 2025: Cardano’s TVL continued to rise, reaching over $400M. However, compared to other major blockchains, this figure remains relatively low, suggesting that capital inflow into Cardano’s DeFi ecosystem is still progressing slowly.

Ecosystem Maturity

• Ethereum remains the most mature DeFi blockchain, far surpassing other chains in terms of protocol quantity, TVL, and DEX trading volume.
• Solana and BSC perform well in the DeFi ecosystem, with TVL significantly higher than Cardano, primarily due to Solana’s high performance and BSC’s integration with the Binance ecosystem.
• Sui and Cardano are both still developing their ecosystems. However, Cardano’s DeFi progress has been relatively slower, with fewer protocols and much lower TVL compared to leading blockchains.

Reasons for Cardano’s Low TVL

• Underdeveloped DeFi Ecosystem: Cardano currently has only 40 protocols, compared to 1,296 protocols on Ethereum and 202 protocols on Solana. Key DeFi applications like Minswap (DEX) and Indigo (synthetic assets) have relatively low trading volumes, limiting their ability to attract sufficient liquidity.
• Limited Development of Liquid Staking (LSD): The TVL growth of major blockchains such as Ethereum and Solana is largely influenced by liquid staking protocols like Lido, Rocket Pool, and Marinade. Cardano currently lacks a major liquid staking protocol, restricting users’ ability to stake ADA while simultaneously participating in DeFi activities.
• Low User and Developer Activity: Although Cardano’s Meetup community is larger than Solana’s, its Twitter presence is significantly weaker than both Solana and Sui. With fewer ecosystem projects available, Cardano’s DeFi product offerings are limited, reducing its appeal to users and investors.

Cardano Summary and Outlook

Despite Cardano’s current shortcomings in the DeFi ecosystem and market influence, it holds distinct competitive advantages in certain areas, with the potential to complement or compete with Ethereum and Solana. By advancing in fields such as supply chain finance, sustainable finance (ESG), decentralized identity (DID), and liquid staking (LSD), Cardano may secure a unique market position in the future.

In the supply chain finance & logistics sector, Cardano leverages Plutus smart contracts combined with the UTxO transaction model to ensure data storage security while reducing transaction costs, making it better suited for enterprise-level applications. In comparison, Ethereum’s high Gas fees make it less viable for large-scale supply chain management; Solana, with its high TPS, offers efficient transactions but its relatively centralized structure may undermine trust in supply chain operations. Meanwhile, Cardano’s strong decentralization and low transaction costs make it an ideal choice for cross-border supply chain payments and logistics transparency management.

In the field of sustainable finance (ESG), Cardano’s environmentally friendly PoS (Proof-of-Stake) mechanism results in significantly lower carbon emissions compared to Ethereum and Solana, aligning with ESG investment standards and potentially attracting capital from investors focused on sustainability. In contrast, Ethereum, although it has transitioned from PoW to PoS, still faces MEV (Miner Extractable Value) issues, which may reduce its decentralization credibility. Meanwhile, Solana, despite its high transaction efficiency, relies heavily on large data centers for operations, resulting in higher energy consumption. Cardano’s combination of low energy consumption and decentralization makes it more suitable for green finance and ESG-related investments.

In the decentralized identity (DID) sector, Cardano has introduced Atala PRISM, which is applicable to government, banking, and education institutions, providing an efficient solution for decentralized identity management. Currently, Ethereum and Solana have weaker presences in the DID sector, with no prominent solutions in place. This gives Cardano a significant opportunity to establish long-term competitive barriers, potentially evolving into the infrastructure for national-level identity management systems.

In terms of DeFi & Liquid Staking (LSD), Cardano’s biggest challenge lies in its insufficient liquidity, with its TVL significantly lower than Ethereum and Solana, and DEX trading volume also relatively low. However, if Cardano can introduce a robust LSD solution (similar to Ethereum’s Lido), its DeFi ecosystem could experience substantial growth. Additionally, Cardano will need to enhance its cross-chain asset support (such as USDT, USDC, and WBTC) to attract more capital inflow and improve the overall competitiveness of its DeFi ecosystem.

In conclusion, while Cardano currently lags behind in the DeFi ecosystem, it holds significant competitive advantages in supply chain finance, ESG, and decentralized identity (DID). If Cardano can accelerate the expansion of its DeFi ecosystem, particularly through breakthroughs in liquid staking and cross-chain asset integration, it still has the potential to carve out a unique market share and play a greater role in the Web3 ecosystem in the future.

References:

1. https://x.com/Cardano
2. https://x.com/Cardano_CF
3. https://x.com/InputOutputHK
4. https://x.com/emurgo_io
5. https://www.meetup.com/topics/cardano/
6. https://www.cardanofoundation.org/blog/ecosystem-guide-2025
7. https://defillama.com/chain/cardano
8. https://adastat.net/accounts
9. https://defillama.com/protocol/liqwid
10. https://defillama.com/protocol/minswap