Cardano economy

Cardano is a blockchain network and associated infrastructure that provides social and financial interactions to network participants. The blockchain technology gives us the foundation to build an economy with a shared medium of exchange (ADA).

For Cardano to thrive, we need to grow the economy that sits on the technology. One shared goal of the Cardano community is to drive the growth of Cardano. This can be achieved by evaluating future development based on contribution towards this economy.

Cardano economic growth derives from three main variables:

  • Competition (driven by increasing utility); more businesses competing for resources

  • Risk Management; insurance or other forms that encourage investment

  • Regulation; provides confidence to end users to trade in the economy

(Note: Risk & Regulation were part of the original Cardano White Paper)

Each goal outlined below will improve one or more of the three main economic variables described above. Technical goals that underpin the economy:

  • Participation; growing global participation drives transaction growth

  • Collective governance; decentralization means ada holders and network participants control & manage the economy

  • Performance; speed, memory and throughput all contribute to transaction growth

  • Interoperability; widening the economy to join with other economies increases transaction growth

  • Transparency & audit-ability; builds confidence to trade in the economy

The technical characteristics of blockchain that enable the economy:

  • Security; consistent need to main security for participants

  • Accessibility; need ease of access to drive participant growth

  • Availability; need consistent reliability to build confidence to use the network

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