The Cardano blockchain has two layers: a settlement layer and a computation layer. The Settlement Layer (CSL) serves to settle transactions made by peers in the network with ADA, its native currency. The Computation Layer (CCL) is optimized to support smart contracts and decentralized applications. Developers chose a layered protocol to increase the network’s capacity for protocol changes and soft fork implementations. Cardano is developed in Haskell, and smart contracts are created in Plutus, another programming language that allows for building stricter contracts.

Haskell is the fundamental language for Plutus. It is a programming language used by Cardano for its smart contract creation. Haskell also regulates Marlowe, a domain-specific language for creating Cardano's financial smart contracts.
The supply of ADA is capped at 45 billion. The current ADA supply is roughly 31 billion, leaving 14 billion for network incentives. Cardano incentives compensate for the network’s decrease in monetary expansion. Incentives increase as network use increases.

Cardano will use a Proof-of-Stake (PoS) consensus mechanism called Ouroboros once it reaches the “Shelley” era. Ouroboros consensus aims for improved network security and modularized design. Its modularization allows network delegation, sidechains, and light client data structures. Ouroboros design Ouroboros consensus is determined by slot leaders elected by token holders with a sufficient stake in the network. Slot leaders operate in epochs to listen for and confirm transactions to produce blocks approved by input endorsers. A Cardano input endorser is the second set of stakeholders that verifies transactions included in blocks. It’s believed this design is scalable since the network can increase the number of slots per epoch and run multiple epochs across the network simultaneously.

Use of Native tokens in the ecosystem
Cardano's native cryptocurrency, ADA, may be used to facilitate blockchain transactions and transfer value to other users. On the Cardano network, it's also utilized for staking and paying transaction fees.