Cardano wallet

The Cardano network is based on an academically-conceived proof-of-stake (PoS) consensus mechanism called ‘Ouroboros’ that has been peer-reviewed, and the native currency of the network, ADA, can be stored and transferred using the Ledger wallet.

Cardano is written in the programming language Haskell and is built in a multi-layered architecture. The base layer is the settlement layer of the network with the unit of account for ADA, which is linked to the ‘control layer’ that handles the smart contracts running on the network.

Token holders (i.e., ADA) can either directly stake, while online, or delegate their ADA to participate in the validation process of the network using the Ledger, Daedalus or Yoroi wallets. Stake pool operators control delegated ADA corresponding to an on-chain certificate, but delegators still retain the monetary rights, and revenue generated, from their delegated ADA.

Three primary teams are working on Cardano’s development:

1. Cardano Foundation
2. IOHK
3. Emurgo

Cardano’s primary development team, IOHK, is also one of the leading development teams for Ethereum Classic. IOHK is also contracted to build Emurgo, the for-profit/commercial arm of the ecosystem’s development. Emurgo provides educational resources, incubation accelerators, systems development, and advisory services about blockchain technology.

The Cardano Foundation is a Swiss-based organization whose mission is to drive adoption of the platform, shape legislation and commercial standards, grow the community, ensure stakeholder accountability, and forge partnerships. According to the foundation:
“Cardano Foundation is an independent body based in Switzerland with core responsibilities to help oversee and supervise the development of Cardano and its ecosystem. We are committed to protecting and promoting Cardano and advocating on behalf of the users and community of the protocol.”

Of the original 26 billion ADA tokens created, roughly 5.1 billion were allocated to the three teams working on Cardano’s development. The total supply is capped at 45 billion tokens, and the additional tokens leading up to the cap will be issued via the PoS validation process (i.e., block rewards) over the next 24 years.

There are different types of Cardano wallets, each with its own benefits and drawbacks.
Cardano hot wallets are connected to the internet and are usually convenient to use, however, they are also vulnerable to online attacks. Examples include web-based, mobile, and desktop Cardano wallets. With Cardano cold wallets, your private keys are stored offline and out of reach of online threats. Examples include paper and hardware wallets.

Cardano wallets can also be categorized as custodial or non-custodial, depending on who holds the private keys. Storing your ADA in a custodial wallet means that a third party controls your private keys and, therefore, your ADA coins. In contrast, a non-custodial Cardano wallet allows you to fully own and control your ADA.

Yes, there are mobile wallets for Cardano. You can get one and unlock the full Ledger experience by pairing the Ledger Live app (available on Mobile and Desktop) with a Ledger hardware wallet. Our Cardano wallets are independently certified and designed to resist sophisticated cyber attacks.

When you first buy token, you’re issued with two keys: public and private.

• A public key serves as an address that can be shared with other parties to perform transactions.
• A private key represents a randomly generated number that signs transactions and protects your assets from malicious attacks. If it gets compromised or lost, you won’t be able to access your crypto wallet to spend, withdraw, or transfer your assets.

To safeguard and keep track of your keys, you can use online or offline wallets. Online wallets, also known as hot wallets, store private keys on systems or devices that are connected to the internet. Hot wallets are easy and convenient to use, however, they come with several drawbacks. Besides being susceptible to attacks and a honeypot for hackers, with hot wallets, the custody of private keys is often entrusted to a third party such as a crypto exchange, which means you never have full control over your funds. The safer choice are specialized hardware wallets that store private keys offline. Stealing private keys from a hardware wallet would require physical access to the wallet and corresponding PIN or the recovery phrase. What’s more, with hardware wallet, you don’t need to rely on third party custodians.

Ledger Nano is the industry-leading hardware wallet. With more than five million customers, Ledger Nano wallets have several layers of security that protect private keys, and hence your assets:

• Your private keys are stored on secure element chips.
• A PIN code and a 24-word recovery phrase are required to access the wallet.
• Ledger Nano crypto wallets have been built using highly durable materials for protection against physical damage.

With full isolation between private keys and your computer/mobile, Ledger Nano wallets keep your keys secure and give you complete control over your tokens.