Cardano is an open-source, public, decentralized blockchain platform using a Proof-of-Stake (PoS) consensus mechanism. Like Ethereum, the Cardano network can also support smart contracts and decentralized applications (dApps).
However, the third-generation blockchain is far more scalable and energy efficient than Ethereum, making its native token, ADA, one of the largest cryptocurrencies by market cap. Cardanos ADA became one of the top digital assets to invest in and watch after the rollout of the smart contract functionality in September 2021, attracting significant interest among institutional investors. Cardano's native token ADA can also support staking, allowing its investors to generate passive income on their holdings.