What is Cardano is a popular question after creating this blockchain. Cardano is a blockchain network that “ADA.” is the name of it’s digital currency . This network can use to transfer digital money as well as recording smart contracts and developing decentralized applications. So, Cardano is a competitor to Ethereum, EOS, and other smart contract platforms.
As mentioned in “What is Cardano” it is a blockchain-based platform that, like Ethereum, enables the creation and execution of smart contracts. Hence, the team calls this network a pioneer in the third generation of the blockchain, and multi-layered architecture provides its security. According to the Cardano team, the speed and commission of transactions in this network are much better than the old blockchains like Ethereum.
The development team also mentioned in “What is Cardano”, Cardano is the first blockchain project designed with the scientific philosophy and research of scientists. Work on the project began in 2015, and Cardano digital currency (ADA) was released to exchange offices in December 2017.
In this article, you will learn about Cardano, how it works, its wallets, and how to buy this cryptocurrency.
What is Cardano
What is Cardano’s brief history?
The founder of Cardano is Charles Hoskinson, who was a member of the Ethereum team. In 2015, the Cardano project launched, and spent two years researching solutions to Ethereum and Bitcoin problems. For example, Cardano was able to solve scalability issues in Bitcoin and smart contracts in Ethereum by creating new processes for verifying transactions and creating blocks.
Charles Hoskinson considers bitcoin from the 1st generation of the blockchain and Ethereum from the 2nd generation. According to his idea about “What is Cardano”, we need a 3rd generation of blockchains, and Cardano is meeting that need.
The following three foundations and companies are currently working on the development of this platform:
- The Cardano Foundation
In addition to the above companies, several teams are working separately on Cardano’s open-source code and developing decentralized applications on it. As mentioned in “What is Cardano”, after two years of research and testing, on September 28, 2017, they published Cardano’s core network, and shortly after that, they created ADA as the network cryptocurrency. ADA added to the list of Bittrex, the largest digital currency exchange.
The price of this coin on October 20, 2020, was 0.102335 USD. It had about $3,183,883,547 USD Market Cap value. It was ranked number 9 in the CoinMarketCap platform.
Is Cardano a mineable coin?
The answer to the “What is Cardano mining” is that there is no mining for its currency ADA. Many other cryptocurrencies, such as Bitcoin, use the “Proof-Of-Work” method to maintain network security and verify transactions. But as mentioned in “What is Cardano” it is not like other blockchains, Cardano uses the “Proof-Of-Stake” algorithm.
Proof-Of-Stake is a different way to validate transactions and create new blocks for the blockchain. In this algorithm, For instance, people have to buy some digital currency (for example, Cardano) and allocate it to the network in a wallet to participate in transaction validation and blockchain work.
In this way, as explained in “What is Cardano” they can participate in the verification of transactions and receive new cryptocurrency units. Thus, participants charge network transaction fees. Thereby, you no longer need to buy expensive hardware to participate in the network.
What is Cardano benefit of using stake proof?
This method has the following advantages:
- As explained in “What is Cardano” the stake proof method eliminates the need to purchase expensive hardware to participate in the network.
- It also greatly improves scalability. The Cardano project uses a technology called RINA to solve the scalability problem. It speeds up coin production. Scalability simply means the ability of a system or application to manage increased user traffic. Of course, this management must be done in a way that the quality of the user experience is maintained and users do not notice any changes in the system.
- Due to the speed of transactions, transaction fees reduced. Because thousands of transactions per second processed in the stake proof method. So the cost fees will not increase.
- As explained in “What is Cardano” network security goes up. In proving stakes, the participant ensures that he is not a destructive factor for the network by allocating his assets.
Suppose using proof of stake, if someone wants to attack the network and take control of it, he has to buy more than 51% of all the digital currencies in question (like Cardano) and allocate it to the network. Buying 51% of the total units of a digital currency is very difficult and based on the principle of supply and demand in the market is almost impossible.
As explained in “What is Cardano” if one can do this assuming it is impossible, by attacking the network and destroying its security, the price of digital currency will fall sharply and the attacker himself will suffer a heavy loss.
What is Cardano’s method proof of stake?
The proof of stake algorithm in Cardano is called Ouroboros. In this algorithm, real-time is divided into epochs or periods. Each time is itself subdivided into shorter periods called “slots”. These periods act like shift workers in a factory. It means when one time ends, the work of another time begins. In the Cardano project, the time of the slots is different and can be changed in its algorithm.
Each slot has a leader called a slot leader (SL). This leader elected by Cardano Unit Holders (ADA) with their vote on the network.
Slot leaders are responsible for creating and approving block transactions that added to the Cardano blockchain. Each leader can only produce one block. As explained in “What is Cardano” this mechanism makes it impossible to produce more than a certain number of blocks in a given period. If the leader in a slot, for example, is offline and cannot do his job, then he loses the right to generate a block and does not receive a reward.
Transactions generated by slot leaders are approved by Endorsers. These Endorsers are the verifiers and second set of coin holders responsible for enforcing the protocol. The more ADA coins a person has, the more voting rights they can have to approve transactions.
What is Cardano Price History?
- The name of Cardano currency is “Ada”. As explained in “What is Cardano” this cryptocurrency has a limited number and a maximum supply of 45,000,000,000 ADA coins. It means it will eventually generate 45,000,000,000 units.
- Cardano co-founder Hoskinson became involved in cryptocurrency mining and trading in 2011.
- His first professional involvement in the cryptocurrency industry came in 2013 when he took a course on bitcoin with 80,000 students.
- On October 2, 2017, Ada offered at $ 0.02 per unit at Bittrex Exchange, the largest digital currency exchange of the time, and soon began to jump.
- On January 4, 2018, Cardano, along with the entire cryptocurrency market, reached an all-time high of $ 1.22, up 6,000 from its original price.
- As mentioned in “What is Cardano”, since 2018, Cardano, like most other cryptocurrencies, plummeted in a long-term downturn known as the winter of digital currencies.
- After that, the price recovered slightly in 2019, and in 2020, each Ada unit will trade at a price of about $ 0.05, which is about 130% higher than the initial public offering price.
- On 21 January 2021, Cardano’s price was 0.347361 USD. The trading volume within the last 24-hour of 3,199,691,703 USD. Cardano was down 0.79% in the last 24 hours. The current CoinMarketCap ranking is 6 with a market cap of about 10.8 Billion USD. It has a circulating supply of about 31 Billion ADA coins.
What is Cardano’s buying method?
To buy Cardano, we have to go through the buying process like many other types of cryptocurrencies.
As explained in “What is Cardano” the first step is to save your ADA tokens by getting an ADA Wallet. It’s important to choose a trusted exchange that you can trade another cryptocurrency for ADA. You should work with exchanges that accept cryptocurrency funds or buy ADA with credit cards.
If you can’t buy ADA directly with fiat currencies, you can trade in an exchange where ADA traded in pairs with other cryptocurrencies.
What is Cardano’s wallet?
As explained in “What is Cardano” it is on the top list of cryptocurrencies. But it does not offer many wallets. Therefore, Cardano’s official wallet is “Daedalus”, which you can only install on personal computers.
This wallet completely decentralized and secure and is available for Windows, Linux, and Mac operating systems. To use this wallet, you need to download a few gigabytes of this blockchain. Therefore, you can get the official wallet of this digital currency from Cardano’s official website.
As said in “What is Cardano” the team is trying to increase the abilities of this network in the future. In addition to Daedalus, there are several unofficial Cardano storage wallets. They allow you to store, receive, and send ADA units without having to download the blockchain. These wallets include the following:
- Ledger Hardware Wallet,
- Trezor Model T Hardware Wallet,
- Yoroi light software wallet,
- Atomic software wallet. (That contains Bitcoin wallet, Bitcoin Cash wallet, Ethereum wallet, Ripple wallet, Tether Wallet)
What is Cardano’s future? How do analyze Ada cryptocurrency?
Over the past few years, the Ada cryptocurrency has played an important role in the daily transactions of the cryptocurrency. During the cattle market in late 2017 and early 2018, Ada’s price rose from $ 0.03 to $ 20.1, valued at nearly $ 32 billion. Buyers’ capital had grown by about 3,900 percent at the time, the news was not very stable. As can be seen from the price chart, the price of Ada has continued to fall since then.
Although Ada’s price dropped to less than $ 1, it is predicted that Ada’s price will rise again. Cardano may follow the promises of its makers. Since the production of Ada is limited to a certain number, in theory, in the future, the demand for this cryptocurrency will increase, and this will increase the price and increase its value.
As explained in “What is Cardano,” Cardano has always been one of the top 10 cryptocurrencies in the world at a certain point. It has attracted the attention of a large number of investors. However, during the ups and downs of the market, new cryptocurrencies introduced such as Tezos, and Tether. They replaced by Ada.
Since Ada is a very new cryptocurrency, you can invest in it to achieve one of the best profits in the market economy, which makes Ada a great option for investment.