In 2021, Cardano coin became one of the most rapidly growing blockchain networks in the digital currency space. The token name of Cardano is ADA and it has attained its place among the top 10 digital currencies in the world as per market cap. The technology of this crypto network is developing rapidly. Let us see what Cardano cryptocurrency is?
What Is Cardano?
Just like other digital currencies, ADA (Cardano) is a virtual coin that is used for receiving or sending funds, and also for the store of value. The ADA digital currency operates on the Cardano blockchain, which is the first decentralized network that is fully based on mathematics and scientific formulas and is created by experts in the arena of engineering and cryptography.
The blockchain on which ADA is built can be employed for the creation of Cardano smart contracts and in turn, formulate decentralized protocols and applications. Along with that, it has the ability to receive and send funds instantly for a minimal transaction fee.
The Cardano network is looking forward to solving many prevailing issues of the blockchain industry. They include:
- The use of mathematics to offer a provable safe blockchain that is less exposed to attack.
- Separation of computational and accounting layers
- Design of a safe voting system for token holders.
- A consensus protocol that is infinitely scalable.
How Cardano Came into Existence?
Before you read about the various features of Cardano, it is important you know the emergence of this popular crypto. Since 2010, the full decade of digital currency has hugely been dominated by Ethereum and Bitcoin. Bitcoin has pioneered the crypto arena from its advent as the original asset that is based on the blockchain, where the parameters were redefined by Ethereum of what can be done by introducing smart contracts and by hosting more than a thousand of new protocols of ERC-20 that still navigate the crypto space forward till this day.
Due to the dominance of Ethereum and the market share it has, most developers like to work on its platform, focusing to improve on the latest projects or formulate exciting, latest fields like DeFi upon the robust infrastructure that Ethereum offers. However, other than that there are alternatives available like Cardano whose token name is ADA.
Cardano (ADA) can be thought of as a blockchain initiative that is known worldwide given the fact that it is the very first blockchain that is academically developed and peer-reviewed by some experts from the same field.
The team of Cardano is made up of academics, engineers, and also a co-founder of Ethereum. The diverse group thought to do things differently in 2015 and thus constructed a native blockchain right from the scratch.
Cardano Blockchain Architecture
There is no white paper with Cardano. In place of that, it uses a principle of design that was aimed to solve the issues that other digital currencies faced. The blockchain of ADA comprises 2 core elements. The CSL (Cardano Settlement Layer) operates as a unit of account and this is the area where the token holders can receive and send the token instantly and that too with zero or minimum fees.
The CCL (Cardano Computational Layer) is a group of protocols that acts as the blockchain’s backbone and helps in the operation of smart contracts ensuring compliance and security.
The Cardano network operates on a uniquely designed Proof of Stake (PoS) mechanism for the Ouroboros consensus. This consensus enables ADA to be received and sent securely and easily at all times.
The Native Wallet Of Cardano: Daedalus Wallet
Unlike other big digital currencies like Ethereum and Bitcoin, Cardano also has its own wallet called the Daedalus. With this the users do not just get access to a Cardano wallet, they are capable of operating a complete blockchain node giving them complete control on the funds and also the liberty to make sure transparency over the Cardano blockchain. So if you wonder, Cardano where to buy, then you can easily choose their wallet.
Mentioning the Cardano roadmap is a must as that will help you better in the Cardano review. The road map for the improvement of Cardano is distinguished into 6 important stages that are coined as “era”. Let us see those “eras” in detail.
- Byron: This formulates the foundation code for Cardano and the users can exchange Cardano cryptos (ADA) which have been named after revolutionary programmer Ada Lovelace and can kine this token with their PoS consensus algorithm.
- Shelly: This stage emphasizes on decentralizing the network by building incentives for users so that their nodes can be hosted by them. The main wish of this stage is to take care so that the individual computers or the nodes are operated by a varied group of users of the network rather than a small centralized user base.
- Goguen: This era introduces the concept of smart contracts capabilities to the network enabling developers for the creation of dapp (decentralized applications) on the top of Cardano. The Cardano Goguen release date is not yet confirmed.
- Basho: This era is responsible for developing the underlying performance of the Cardano so that it can carry on more transactions and even scale them up. This stage also introduces side chains which is a way of network scales with the use of multiple blockchains.
- Voltaire: This feature adds a treasury and voting system for self dependent governance. Here users will be given the permission to stake their funds to influence the developments on the network in the future.
Uses For ADA Crypto
The ADA coin can be utilized as a means to transfer value similar to the way cash is being used presently. This is not varied from other digital currencies like Bitcoin or Ethereum. But along with this, it has other uses as well.
One of the essential principles of Cardano is its PoS (Proof of Stake) mechanism where ADA is staked to the blockchain to allow the “stake pool operators” to verify their transactions successfully on the blockchain network. This is where the ADA crypto is different and more useful than other digital currencies available in the market.
ADA is also used for the purpose of voting. This is an appealing feature as it allows the users to vote for new upgrades but there is a setback to it as well.
In the near future, this crypto will also be employed for providing power to the smart contract on the Cardano blockchain. Creator will use this crypto to formulate applications and smart contracts that operate on the decentralized and secure Cardano blockchain.
ADA Price And Supply
ADA has traded in line with most of the digital currency sector for the past several years. During the bull market phase of late 2017 and in the early 2018, the value of ADA increased from $0.03 to $1.20, valuing the crypto at close to $32 billion. The Cardano price prediction, ADA will be worth nearly $5 to $10 by the end of 2022.
Just like other digital currencies, ADA (Cardano) is a virtual coin that is used for receiving or sending funds, and also for the store of value. This coin which was created in 2015 and released in 2017 evolved over time and now stands among the top 10 digital currencies on the basis of market capitalization. This is not only a cryptocurrency, it is way more than that. It has multiple uses that it caters to. The above piece of the article explains the idea behind this popular cryptocurrency.