Wednesday, October 5, 2022

What is Cardano (ADA)?

Cardano (ADA) is one of the fastest-growing blockchain protocols in the cryptocurrency sector. It distinguishes itself from competitor blockchains by rapidly upgrading its underlying technology at a breakneck pace. Its primary goal has been to create a platform for developing decentralized apps (DApps).

Bitcoin‘s extraordinary architecture and history as the world’s first cryptocurrency have both contributed to its meteoric rise in popularity as an alternative means of value storage. In 2015, Ethereum joined the market not long after. Because it is majorly characterized by its smart contract feature, the Ethereum blockchain increases its appeal as a platform for non-fungible tokens (NFT) and decentralized finance (DeFi).

However, Cardano has quickly become one of the blockchain platforms with the most widespread recognition. It incorporates lessons learned from both Bitcoin and Ethereum, improves upon the inadequacies, and merges their uniqueness with its smart contract feature. 

What is Cardano?

Cardano is a blockchain platform that is decentralized and uses proof-of-stake and it made its debut in 2017. Because its underlying technology is somewhat similar to Ethereum’s, it allows developers to build decentralized applications, non-fungible tokens, and other blockchain-based applications.

Its consensus protocol is Ouroboros. Besides this, its protocol also includes a mechanism that enhances indefinitely scalable consensus which further enables the platform to handle transactions swiftly and easily because of its scalability and efficiency.

The Cardano blockchain is powered by the ADA coin.

History of Cardano (ADA)

Jeremy Wood and Charles Hoskinson, Ethereum’s co-founders, created the Cardano Blockchain. This was after Charles abandoned the Ethereum project because Vitalik Buterin steered the network in a different route than intended.

Cardano rapidly became a well-known cryptocurrency thanks to the enthusiasm shown by both its developers and the cryptocurrency community. Besides this, advancements made in Cardano’s programming language and the architecture of its virtual machines are largely responsible for the platform’s rise in popularity.

Ada Lovelace, a polymath, who developed the very first piece of code has in her honor, the token ADA named after her. 

Cardano circulation and Use Cases

Cardano, like Bitcoin, has a finite quantity. Only 45 billion ADA tokens will be created over the course of its existence. While this is relatively larger than Bitcoin’s 21 million coins, we can still attribute some rarity to it. The more in demand Cardano becomes, the more precious it is likely to become.

At the moment, Cardano has a circulating supply of 33,934,048,406 ADA coins.

Cardano’s developers have the goal of making it possible for unbanked people all around the world to use financial services. The number of persons who do not have access to official banking services is estimated to be around 1.7 billion. However, Cardano is currently working on projects that’ll serve Africa and other undeveloped nations in this region.

In addition, the ADA is utilized in the blockchain network’s governance, therefore anyone who possesses any amount of Cardano coin is entitled to vote on how the monetary system develops.

Cardano Features

Cardano stands apart from its competitors by using a peer-reviewed blockchain protocol. Some of its features include but are not limited to

Scalability 

In the early stages, Cardano could only handle roughly 10 transactions per second (TPS). Hoskinson, on the other hand, has just published a paper outlining Hydra, a ground-breaking approach to network scaling. Transactions are processed via state channels off-chain by Hydra, a scalability solution at Layer 2. This technology enables Cardano to process more than a million transactions per second. 

Cardano improves scalability by utilizing a data structure known as a Recursive Internetwork Architecture (RINA). Users can participate in RINA without requiring each user to maintain their own copy of the blockchain

Interoperability 

Cardano aims to establish industry standards that would make it easier for networks to communicate with one another. Examples of these systems include blockchain governance frameworks, system update mechanisms, and feature sets. 

Security

Developers are faced with a new set of risks as a result of allowing blockchain interoperability. Cardano intends to overcome these concerns with privacy, security, and decentralization regulations in place.

Other Cardano’s uniqueness 

Cardano stands itself from its rivals in a number of ways. In contrast to other Blockchains, this one relies heavily on academics. It uses research-based frameworks and evidence-based approaches to guide each step of its development. 

Girolamo Cardano, an Italian polymath, and physician was the inspiration for the name Cardano. Cardano’s invention of systematic probabilistic computations had a profound impact on the globe. 

The multilayer blockchain of the Cardano network makes it possible to modify the system in the future. New features are rigorously tested before they are implemented on the Cardano platform as a whole. As a result, computer scientists from around the world have affirmed Cardano’s status as the Internet of blockchains. 

Where to Purchase and Store Cardano

Cardano (ADA) is currently available for purchase on exchanges such as Bitstamp, Uphold, Binance, and KuCoin.

You can store your ADA using one of the three most prevalent methods, which include using a desktop computer wallet, a wallet app on a mobile device, or a hardware wallet. It is also possible that you will discover that a single option does not cater to all of your requirements. In this particular setting, all three may be combined. 

Using a mobile wallet is an excellent entry point as it also does not cost much. Because of this, the setup is simple, as it offers a respectable level of safety. 

Consider purchasing a hardware wallet if you are going to be investing a considerable amount of money in ADA. Besides that, hardware wallets provide a higher level of protection than mobile wallets do since they store your cryptocurrency in an offline “cold storage” location. 

How is Cardano better than Ethereum?

First and foremost, the developers of Cardano are aware of a fundamental flaw in Ethereum, which is that it is not designed to be used by a large number of individuals. While Cardano has an edge over Ethereum for this, it is not the developer’s fault that so many people crammed into the platform thus causing congestion.

Ethereum network relies on proof of work to validate transactions, which consumes a significant amount of electricity and is unable to handle large numbers of transactions at once. In contrast, Cardano uses Proof-of-stake to validate transactions, thereby using minimal amounts of electricity.

Conclusion 

Cryptocurrencies are dealing with a variety of issues and obstacles. Problems with energy usage, scalability, and the ability to interact with real-world monetary systems are just a few of the challenges. Therefore, Cardano has proven to be an excellent problem solver, with its long-term ambition for its blockchain and token.

However, while its initial use case is as a cryptocurrency, its blockchain hopes to evolve beyond coins into a control layer that will provide functions unavailable in the cryptocurrency ecosystem today. With intelligent members of the Cardano community hard at work, the cryptocurrency ecosystem is bound to see more of these solutions incorporated into the Cardano network.

Ayo Alabi
Ayo Alabi is an experienced writer and Fintech enthusiast, passionate about educating people and helping businesses that want to see their Google search rankings surge. Her articles have appeared in a number of e-zine sites, with focus on balancing informative with SEO needs–but never at the expense of providing an entertaining read.

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