What is Cardano? Everything you need to know about the ADA cryptocurrency

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Cardano (ADA) is a decentralized blockchain based on the “Proof-of-Stake” mechanism. This is based on peer-reviewed research and was produced using evidence-based methods. It is an innovative blend of the latest technologies, enabling developers to build a wide range of decentralized applications, environments and systems, ensuring long-term sustainability and security.

The network uses the ADA as its national currency, which is perceived by many experts as one of the main competitors of Ethereum, which has long been #2 in terms of market capitalization. 

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What is Cardano?

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What is Cardano?

Cardano is a decentralized blockchain purpose-built to enable value transfers through complex programming in a scalable and secure manner. The platform is in the process of developing a smart contract infrastructure that will offer innovative features comparable to any other decentralized protocol, including Ethereum. 

It uses a layered blockchain stack that is conveniently scalable and versatile. It is edited by some of the most talented and experienced software engineers and developers.

The platform has its own cryptocurrency specified by the ADA, and at the time of writing, the token is valued at $0.093 with a market cap of more than $2.4 billion. Just like any other cryptocurrency, you can buy ADA on many trading platforms and crypto exchanges.

What is Cardano (ADA)?

Is Cardano a type of money?

Although Cardano enables the transfer of value through complex programming using its blockchain network, it cannot be considered strictly as a currency itself due to liquidity and acceptance limitations. It is more of a blockchain infrastructure where developers can create smart contracts and applications that fit their needs. Apart from that, ADA can be exchanged for other more popular cryptocurrencies like Bitcoin or Ethereum, which are widely accepted as valid means of payment.

Is it legal?

The Cardano pre-sale was conducted to ensure full anti-money laundering (AML) and Know Your Customer (KYC) compliance under Japanese law, and the ADA distribution was audited to ensure transparency. In addition, Cardano was recently identified in a Swiss draft law as one of the most promising blockchain solutions and a possible choice for distributed electronic registers.

In addition, the head of the legal department of one of the big four accounting firms PwC, Gunther Dobrauz, praised the team behind the development of Cardano. This worldwide and diverse legal recognition of the project, as well as its symbol, ensures that trading in ADA is completely legal. The only exceptions are those countries that have introduced a blanket ban on any kind of cryptocurrency trading.

What is Cardano used for?

When people think about cryptocurrencies, they often think in terms of investments or alternative payment options. Cardano has a wide range of uses, including the following:

    You can invest in the currency both short- and long-term with the intention of making a profit. 

    Cardano’s product Atala PRISM can be used in education to verify credentials to ensure transparency, while another product, Atala Scan, is an anti-counterfeiting application of the platform. 

    Atala Trace is a Cardano product used for tracking the agricultural supply chain, and Atala PRISM can also be used by government agencies for digital identity verification. 

    The Cardano platform can be used by the developers to create decentralized applications, systems, environments and infrastructure.

Which merchants accept Cardano?

Although Cardano is not primarily a means of payment or currency, it has gained enough prominence in the cryptocurrency community to be accepted as a valid payment method by a wide range of merchants. Some of the top traders are listed below:

    GamerAll.com – Here you can buy game items against ADA including Dota 2 skins, CSGO skins, game keys, Steam keys and more. 

    Centerless Imagery – This service creates 360-degree virtual tours and high-resolution HDR images for real estate and businesses, as well as residential and commercial visualizations. 

    Bitcoin Meister – If you want to buy crypto assets, you can go to online retail and buy a wide range of assets for ADA. 

    NOWPayments – An intelligent service that offers easy-to-use APIs that enable seamless integration, which saves developers time. 

How does Cardano work?

Cardano is in the process of setting up a smart contract platform that aims to offer sophisticated features compared to any other protocol developed previously. The Cardano team includes a large global team of professional engineers and researchers. The protocol features a multi-layered blockchain stack that is versatile and scalable, coded using the most robust academic and industry-focused software standards. Cardano will deploy a democratic system of government that will enable the platform to continue to evolve in the years to come and sustainably fund itself via a cash register mechanism. 

Cardano has also pledged that it will seek to balance users’ need for privacy while ensuring compliance, so Cardano’s way of operating in a regulated manner will encourage greater financial inclusion. Cardano is currently supported by three different organizations, including the Cardano Foundation, IOHK, and Emurgo.

How it all began – The story of Cardano

In view of the situation of blockchain environments and the limitations that the Ethereum network brings, Charles Hoskinson decided to lay the foundation for Cardano in 2015. The ICO was conducted in 2017 under the Japanese provisions of KYC and AML laws and managed to raise $60 million before release. It was the first blockchain that originated in scientific philosophy and used the Haskell programming language.

Cardano’s development roadmap has been divided into five distinct eras, including Byron, Shelley, Goguen, Basho, and Voltaire. Each era is designed to add its own variety of functionalities.

Cardano Mining – How are new coins created?

Unlike Bitcoin , Cardano does not use the proof-of-work mechanism. Instead, it relies on the Proof of Stake (PoS) protocol called Ouroboros, which is designed to work in a more specialized way compared to other PoS algorithms. The protocol divides the time slots into “epochs” which can be viewed as work in one shift. Each epoch has an elected leader who is responsible for creating and verifying blocks on the blockchain. If a leader fails to create and verify a block, the leader of the next epoch tries. These transactions on the blockchain created by the leaders require approval by input promoters who are elected based on the stakes. 

The Proof of Stake protocol rewards users based on their availability and ability to verify transactions, rather than requiring computing power to solve complex cryptographic puzzles. The incentives received in ADA tokens will be split in three ways between Epoch Leaders, Input Sponsors and Calculators.

Supply – How many coins are available, what if they run out?

The total volume of ADA tokens is capped at 45 billion, while the current available supply sits at just over 35,337,374,392 billion. On the other hand, the ADA tokens circulating in the market are approaching 36,454,694,074 billion. With supply strategically capped, market forces will determine the availability and liquidity of ADA coins by setting the price once circulation has reached the cap.

Additional ADA tokens cannot be created. Once the cap is reached, the price of ADA will either increase or decrease depending on the dynamics of supply and demand.

Decentralization – what does that mean?

Decentralization is an idea that proposes that no central authority, including individuals and organizations, should have absolute or undue influence over a blockchain. This means that no company, regulator or government can exercise control over the way a blockchain is run. Instead, the owners and decision-makers are those thousands of people whose computing devices and resources are used to host and operate the blockchain. It ensures there is no censorship and offers complete immutability.

Decentralization provides a comparatively democratic and transparent way for digital assets and infrastructure, including currencies, systems, applications and financial institutions.

Invest in Cardano

Like any other cryptocurrency, the Cardano rate is volatile, which means it offers a trading opportunity. You can use rapid rises and falls to your advantage to make profits. However, you must be careful with your approach and manage risk. If you believe in blockchain, you can also invest in the currency for the long term, allowing your capital to grow over months or even years. You should do your research and also keep a keen eye on the market before gambling your money. 

Why should you invest?

There are many reasons to invest in Cardano or any other cryptocurrency, including the following:

    Trying to earn passive income through cryptocurrency investing and day trading Cardano. 

    Trying to deposit your capital in a more decentralized environment of the blockchain instead of banks. 

 To show your support and belief in the Cardano project. 

You should keep in mind that crypto investment goals can vary, which means different traders need different strategies. For this reason, it is important to identify the reason why you want to invest in ADA.

Price and Volatility – Why is the price so volatile?

Since all cryptocurrencies, including ADA, are based on the decentralized blockchain networks and are not overseen by a unilateral regulator, market dynamics have a significant impact on their prices. The introduction of the latest technology, news updates, latest laws, social behavior, market sentiment, opinion leaders comments and various other factors have the potential to drive the price in one direction or another. This volatility is a double-edged sword as it offers traders an opportunity to make profits while also posing capital risk. 

That’s why it’s vital that you do your homework, diversify your portfolio, and keep an eye on price action and market sentiment to ensure your money is safe.

Where to buy Cardano

Like other popular cryptocurrencies, ADA is available on a variety of trading platforms and exchanges. Before deciding on your favorite crypto exchange, there are several considerations you need to make. These factors include reliability, ease of use, transaction fees, payment arrangements, minimum deposits and customer support. Below we have listed our three favorite trading platforms 

Where you can buy Cardano: 

    eToro – One of the leading social trading platforms that makes buying cryptocurrency CFDs fast, convenient and affordable. With ease of use, expert analysis and nominal fees, eToro is one of the top options for you. 

    Plus500 – With a long legacy, Plus500 has established itself as one of the market leaders. Here you can buy ADA as well as all popular and niche cryptocurrencies including BTC and ETH. 

    FXTB – Though founded primarily for forex trading, FXTB has used its reputation to make a name for itself in the cryptocurrency arena. With a user-friendly interface and affordable transaction fees, you can choose to buy ADA on this platform.

Cardano wallets – keep ADA safe

Buying Cardano or any other coin is the first step, but you also need to keep it safe. If you plan to keep your ADA for a long time then the trading platform account is not secure enough and you have to rely on crypto wallets.

What are wallets?

Crypto wallets are either hardware gadgets or software applications capable of securely storing cryptocurrencies and digital assets including Bitcoin, Bitcoin Cash, Ethereum, Chainlink, Monero, Cardano, Ripple and others. They use state-of-the-art security features including top-notch encryption, 2FA and passphrase protection to keep your funds safe.

What types of wallets are available?

If you are looking for the best crypto wallets to store ADA, there are different types of wallets in the market:

Web wallets

Web wallets are either browser-based or built into the trading platform, which you can access with your credentials. They are easy to access but don’t offer many security features. For example, Yoroi can be installed as an extension in Chrome and Firefox. 

Mobile wallets

When traders want portability for their digital assets, they can rely on mobile wallets. They offer reasonable security and are feature-rich enough to ensure quick and convenient trading. Leading mobile wallets include Yoroi, Infinito, Atomic Wallet and Guarda.

Desktop wallets

Just like mobile wallets, desktop wallets are software applications that can be installed on a PC or laptop. They offer greater security and often allow trading from within the application for convenience. Cardano’s leading desktop wallets include Daedalus, Guarda, and Atomic Wallet.

Hardware wallets

If you want the best security, then a hardware wallet is the best option for you. You are absolutely not connected to the internet or any network which can put your funds at any risk. They also offer top-notch security through passphrases and 2FA. You can use Ledger Nano S and Trezor to store Cardano.

Wallet Combinations

If you want to have everything in one place including security, convenience, reliability and functionality then you can use different combinations of the above-mentioned wallets. They can often be linked together to offer you cross-functionality and compatibility.

Keeping the wallet on an exchange, the possible advantages and disadvantages 

While there is no immediate risk of storing your ADA tokens in an exchange’s wallet, it is not recommended to keep your funds there for long periods of time. While trading platform wallets offer improved user experience, convenience and quick access, they do not have the best security features. If the website goes down or becomes the target of a security breach, your funds can either become inaccessible or be stolen.

What are the pros and cons of Cardano?

The cryptocurrency Cardano offers a number of advantages but also some disadvantages.

Cardano advantages

One of the biggest advantages is the scientific approach to development. If successful, Cardano will be one of the most secure, stable, and fastest smart contract platforms on the crypto scene. The potential of this platform is correspondingly large. The side chains relieve the network, the Ourobos algorithm ensures fair staking, and the Cardano blockchain is also quantum-resistant. Another advantage of the project is that a number of well-known developers are working on it. 

Cardano cons

In addition to the advantages, it should also be noted that Cardano is still in the development phase. It remains to be seen whether all promises will be implemented. So far, the blockchain has only been used to trade the ADA token. If the blockchain goes into operation, it will also be in competition with existing products such as Ethereum, NEO , TRON and EOS .

The future of Cardano

Cardano is an ambitious project, but it has the resources to achieve its goals. Will Cardano outperform other smart contract platforms? This difficult question will only be answered at the end of the project’s roadmap. But even if Cardano develops into the most efficient blockchain for smart contracts and dApps, nothing will follow from this for the exchange rate of the currency in relation to Ethereum and Co. After all, there are also coins that are faster and more stable than Bitcoin. Still, Cardano is worth investing in for its potential.

FAQ

1. Which wallets are safe for storing ADA?

There are many wallets for storing ADA, but Ledger Nano S and Trezor are the best hardware wallets. If you are looking for software or web wallets, you can opt for Daedalus, Guarda, Infinito, Atomic Wallet or AdaLite.

2. How can I mine Cardano

Cardano uses the Proof of Stake protocol, so you don’t have to mine the coin through powerful calculators. Instead, you can deposit the ADA into your account as a share and become an endorser to earn rewards based on availability and verification.

3. Is it the right time to invest in Cardano?

Although Cardano is the first blockchain network to be developed based on scientific knowledge and research-based philosophy, it is still in the development phase, which makes it quite volatile as a currency. You should diversify your investments to ensure you don’t lose your money.

4. Is the Cardano blockchain network a decentralized platform?

 In any case. It cannot be influenced by any central authority or individual.

5. How is Cardano different from other blockchain-based platforms or currencies?

Cardano seeks to balance regulatory and legal compliance with consumer convenience to enable a safe and secure blockchain platform.