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A distributed ledger, is a database stored on many independent computers by many independent participants. Every copy of this database preserves the entire history of all transactions done on the network. These distributed databases together build the "truth" of the network and ensure that it is impossible for a single participant to change the history of the transactions for his own benefit. The term blockchain refers to the approach in which the data is stored, in blocks, every new block is linked to his predecessor to preserve the correct order of the transactions.

Theoretically, this database can now be used to store or transfer all information that needs to be protected against data theft or falsification. Like for example:

• Digital currencies (currency database)
• Storage of ownership rights like:
  properties, vehicles, IP-rights, music rights, digital Art (NFTs) ..
• Digital shares (stock database)
• Digital Identities (passport)
• Certificates like driver's license, diploma, ...
• Storage of personal medical records
• Transparent documentation of supply chain data
• Storage of recordings for digital voting
• Decentralized Finance: Store contracts for Swap, Bond, Escrow etc.

It should be mentioned that the data itself does not necessarily have to be stored on the blockchain, for many use cases it is sufficient to just store the proof of authenticity of the data (=the hash). The data itself can then be kept by the actual owner, and when the owner wants to present the data to somebody, lets say i want to show my passport (digital ID) to the border official, the official can verify if the presented data is correct by checking the proofs on their own copy of the blockchain.

A significant advantage of storing ownership right on a blockchain is the possibility of transmitting and verifying them peer to peer.

Bitcoin proved for the first time on a global scale the functionality and security of a decentralized public database & enables peer to peer sending and receiving of Bitcoins. The network has been in use since 2010 without a single blockchain hack.

Limitations:
• High energy consumption (status 2022 Bitcoin Network uses 205 Twh; The whole country Thailand uses 195 Twh) Source: digiconomist
• too low transaction throughput for a worldwide payment network
• very difficult to further develop and evolve the network due to lack of (decentralized) funding and the ability to align with the decentralized community on updates (no voting mechanism available). In case of a disagreement on an major update it leads to a hard-fork which divides the network & the community.

Ethereum shows for the first time the concept of a programmable blockchain through so-called "smart contracts", and thus enables the implementation of the applications described in point 1.2) for the first time.

Limitations:
• High energy consumption (status 2022 Ethereum Network uses 113 Twh) Source: digiconomist
• too low transaction throughput for a worldwide payment network
• Lots of bugs in the often times very complicated „smart Contracts“ , more than 1,3 billion USD where stolen through defi hacks in 2021. Source: State of Defi Security
• very difficult to further develop and evolve the network due to lack of (decentralized) funding and the ability to align with the decentralized community (no voting mechanism available). In case of a disagreement on an major update it leads to a hard-fork which divides the network & the community.

Cardano is a 3rd generation decentralized blockchain network that tries to overcome the limitations of the first two generations. Cardano is developed with the principle research first, this means potential changes to the Protocol are first described in research papers and have to go through the rigorous process of academic peer review, before they are even considered as possible enhancements for the protocol.

Ouroboros is the first peer-reviewed, verifiably secure blockchain protocol, and Cardano is the first blockchain to implement it. Ouroboros enables the Cardano network’s decentralization, and allows it to sustainably scale to global requirements without, crucially, compromising security. Current energy consumption of the Cardano Network is approximately 0,003 TWh, which means the network is 50'000 x more energy efficient then the Bitcoin Network (Source: Cardano Blockchain Insights)

To ensure a sustainable development of the CARDANO Network, a decentralized treasury is implemented in the protocol, part of the transaction fees are used to keep it liquid. The funds in the treasury belong to the ADA holder, regularly ADA holders have the ability to vote for the use of the treasury funds. The results of this votes are recorded on the cardano blockchain. There is pilot project ongoing were start ups and projects building on cardano can apply for funding, and the community gets to vote which project to fund. (=Catalyst)

Cardano gets developed in 5 phases to the first "complete" implementation. After completion of this development, further changes should only be made via the decentralized voting mechanism. Roadmap Cardano

• BYRON: Foundation (100% finished)
• SHELLEY: Decentralization (90% finished)
• GOGUEN: Smart-Contracts (80% finished)
• BASHO: Scaling (rolled out in 2022)
• VOLTAIRE: Governance (rolled out in 2022/23)