What is Cardano (ADA)?
The Cardano project is an open source blockchain project, developed by Charkles Hoskinson, one of the founders of ethereum.
According to Hoskinson, Cardano is the third generation of blockchain, with Bitcoin and Ethereum being the first and second generation respectively.
So instead of using existing code,Blockblock blockano has been rewritten from scratch. Too often, people assume that Cardano and ADA are the same entity. However, there is a big difference between these two names.
Cardano is the name of the blockchain, which allows anyone to transact, send and receive money. Meanwhile, ADA refers to the name of the cryptocurrency. This is similar to Ripple, where Ripple refers to the underlying blockchain and XRP is the name of the currency.
Cardano uses a smart blockchain, you can use smart contracts, just like with Ethereum. Smart contracts allow two or more people to enter into an agreement, without the need for third-party verification. In a smart contract, once the predefined conditions are met, the rest automatically ends the process.
Cardano project conducted ICO in 4 phases from September 2015 to January 2017. The project is called a Japanese retirement investment, because 95% of the buyers are Japanese aged 35-55, 2.56% of the buyers are Korean, 2.39% of the buyers are Chinese. The ICO process sold a total of 26,000,000,000 out of 45 billion ADA coins. At the end of the ICO, the project raised a total capital of 63 million USD with an average price of $0.00242/ADA and the market value immediately after the ICO reached nearly 109 million USD.
ADA price today. Source Coinmarketcap.
Cardano project development team
The Cardano project consists of 3 independent organizations working together to implement the project
Cardano Foundation play the role of promoter, project teacher, promote the application of the platform to program applications.
IOHK is a system development company that plays an important role in establishing the network. The company CEO is , one of the founders of ethereum. All of the company’s research and development is verified by 3rd parties. With a strong team of programmers, the Cardano project is highly appreciated for its security and network scalability.
Emurgo is a real business partner that accelerates the growth of the Cardano network by sponsoring start-ups developing applications on the Cardano platform, as well as providing tools and experts for startups. this project.
Currently, the company IOHK has the task of developing and perfecting the technology platform by 2020. The project has a fairly clear system of division of duties, avoiding overlaps and conflicts of interest.
How does Cardano work?
Blockano Blockano can be divided into two separate classes.
This class allows users to trade send or receive ADA coins from one wallet to another. This is similar to how users transfer other cryptocurrencies like ETH.
This layer is responsible for creating and helping users enter smart contracts with others.
In general, blockchain has only one layer. This dual layer is what distinguishes Cardano from other cryptocurrencies.
Potential benefits of this two-layer setup.
The compute layer is highly adaptable. It makes it easy to make different changes to different categories of end users. For example, different countries have their own regulations, when it comes to cryptocurrencies.
Cardano may change the way data is stored and accessed according to different local laws. This ensures users remain private while complying with local regulations.
In addition, the computation layer makes the soft fork easier to handle, without disturbing the blockchain. This is not possible with older blockchains.
Ouroboros, proof of stake algorithm – Cardano
Cardano is decentralized. Meaning, no central authority has control over the network. Just like BTC, ETH and XRP the network is run by peers. However, Cardano uses a different proof-of-stake algorithm called “Ouroboros”.
Ouroboros – Proof of Stake: Cardano’s Algorithm
Blockblock blockano uses a consensus mechanism that runs on Proof-of-Stake. Here’s how it works:
- Transaction validators are called “validators” but not miners.
- To become validators, they have to freeze part of their ADA coins, this is called stake.
- Validators will be rewarded when they verify transactions on the cardano network.
- The higher the stake, the greater the chance of winning the bonus.
- The amount in the bonus is proportional to the value of your stake (the amount of ADA is frozen).
The Ouroboros protocol ensures that everyone on the network has a chance to earn rewards.
What makes Cardano unique?
Here are some features of Cardano that make it stand out from other cryptocurrencies.
1. Haskell Programming
Haskell is a computer language mainly used to convey complex mathematical summaries such as coding. With Haskell, Cardano ensures fast development times by using shorter lines of code and a large range of available code libraries.
2. Administered by ADA Owner
The evolution of the blockchain is extremely important in determining its future functionality. Sadly, most cryptocurrency projects today, entrust the development process to a small number of individuals. This means that end users have no say in these projects.
This is what makes Cardano unique. Holders of the ADA token can participate in the governance of the network. If any token holder proposes to upgrade or change the system, it will be voted on. If the proposal wins a majority, appropriate updates and modifications will be made to the system.
3. Daedalus Wallet
This is a very safe wallet to store your ADA coins. The wallet is quite easy to use and allows for easy money management.
In addition to sending and receiving Ada, Daedalus wallet has many special features that make it easy to use and provide you with a high level of security. These features include:
- Encrypted private keys and spending passwords to combat security threats like malware.
- You can print this wallet out on paper, and then put it in a place where you feel safest.
- You can buy Ada directly in Daedalus wallet.
- Monitor transactions and assure users that their transactions will never be reversed.
You can download the wallet here
4. Cardano offers both cryptocurrency and technology platform
In addition to ADA coins, Cardano provides a technology platform that can run decentralized applications (Dapps) for governments, individuals, and other institutions.
Advantages and disadvantages of Cardano
Advantages of Cardano?
- Cardano was developed to overcome the weaknesses of Bitcoin and Ethereum by outstanding features.
- The project uses PoS, avoiding costly electricity costs and achieving a fast consensus process.
- The system splits into 2 independent layers to ensure the security and speed of the system.
- The upgrade mechanism does not affect the community like Bitcoin hardforks.
- The development team includes many experienced scientists and programmers from all over the world.
- The claims made by the Cardano blockchain are still unproven, some parts of the network are still under development.
- Ongoing issues with Daedalus, the official wallet.
Why you should invest in Cardano
Cardano network system was developed to overcome the weaknesses of Bitcoin and Ethereum by outstanding features
The system splits into 2 independent layers, the CSL ledger layer and the CLL computation layer, which allows to increase the security and speed of the system.
The project uses proof of stake to avoid energy consumption and fast consensus.
Developing an upgrade mechanism after implementation does not affect the community like Bitcoin hardforks.
The development team includes many experienced scientists and programmers from major universities around the world.
Where to buy, sell, trade Cardano (ADA)?
Currently, there are many major exchanges that support ADA trading such as Binance exchange, Bittrex exchange, Huobi exchange …, so you can easily buy and sell ADA without fear of no liquidity.
ADA coin will also be integrated on the system of ATMs in Japan. Starting with five locations, the system is expected to grow to around 25 ATMs within a year of Cardano’s launch.
Where to create a Cardano (ADA) wallet?
In addition to the Daedalus wallet, you can store ADA in the following wallets:
- Cardano Wallet – Ledger Nano WILL
- Cardano Wallet – The Daedalus Wallet
- Cardano Wallet – Yoroi Wallet
- Cardano Wallet – Infinito Wallet
- Cardano Wallet – Atomic Wallet
- Cardano Wallet – Guarda
- Cardano Wallet – AdaLite
Through the article “What is Cardano? Should you invest in Cardano coin or not?” we hope you have more useful knowledge about ADA virtual currency. If you have any questions, leave a message in the comments section.
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