$ADA ADA is the native cryptocurrency of the Cardano blockchain platform. Here's a breakdown of what that means:

* Cardano (the Platform): Cardano is a public, decentralized blockchain platform. It's often referred to as a "third-generation" blockchain, aiming to address scalability, sustainability, and interoperability issues faced by earlier blockchains like Bitcoin (first-gen) and Ethereum (second-gen). A key characteristic of Cardano is its reliance on peer-reviewed academic research and evidence-based development methods.

* ADA (the Cryptocurrency): ADA is the digital token that powers the Cardano network. It's named after Ada Lovelace, a 19th-century mathematician widely considered the first computer programmer.

* Purpose: ADA serves multiple functions within the Cardano ecosystem:

* Transaction Fees: It's used to pay for transaction fees on the Cardano blockchain.

* Staking: Cardano uses a Proof-of-Stake (PoS) consensus mechanism called Ouroboros. ADA holders can "stake" their tokens to help validate transactions and secure the network. In return, they can earn rewards, making it a way to generate passive income.