Cardano (ADA)

Overview

Cardano transactions consume UTXOs and create new outputs that can contain ADA together with native tokens. ADA is the principal asset used to pay fees and satisfy ledger requirements for holding or transferring other assets.

Cardano uses proof-of-stake consensus. Holders can delegate stake to pools while retaining control of their ADA, subject to wallet and protocol rules. Delegation rewards depend on pool performance, network parameters, and the amount of active stake. Holding ADA does not automatically mean operating a validator.

Smart-contract applications use Plutus and the extended UTXO model. Transactions can include scripts, redeemers, datums, collateral inputs, and reference data. Application interaction therefore requires more than a simple ADA transfer.

Cardano native tokens are tracked directly by the ledger under minting policies. A ticker is not a unique identifier; applications should use policy ID and asset name. ADA itself is the native coin and does not have a token contract.

Payment systems should store amounts in lovelace, use correct network address prefixes, verify output value and assets, and apply Cardano-specific confirmation or finality policy. Indexers can lag, so critical settlement should remain tied to canonical blocks.

ADA serves both as transferable value and the resource asset that supports Cardano transactions, staking, and multi-asset accounting.

Wallet and payment systems should preserve the complete multi-asset output when spending ADA. Selecting an input that also contains native tokens requires recreating those tokens in change. Poor transaction construction can unintentionally move or strand assets even when the intended ADA amount and fee appear correct.

Cardano (ADA) is closely related to Cardano Native Token and Cardano Network, yet those concepts should remain separate in custody and accounting. A relationship to Cardano (ADA) through a ticker, wrapper, standard, or protocol does not create identical ownership or settlement rights.