What is Cardano (ADA)?
Cardano is a third-generation decentralized public blockchain. It is open-source with consensus achieved using proof-of-stake (PoS) technology, designed to be more efficient than proof-of-work (PoW). The sustainability, interoperability, and scalability of PoW networks are limited by the infrastructure burden of energy use, slow transaction times and growing costs. This makes Cardano a promising alternative for developers seeking greener blockchains and solutions.
What are ADA key features and how does it work?
Cardano uses PoS (Proof-of-Stake), a core difference from the Bitcoin and Ethereum PoW (Proof-of-Work) system. Both PoW & PoS are consensus mechanisms, whose purpose is to choose a “trustworthy” validator for the next transaction and moreover agree on a current state of a blockchain. PoW rewards miners for solving complex mathematical problems in order to mine a new block on the blockchain. In contrast, in a PoS system, stakers validate and generate new blocks.
In general, Proof-of-Stake is a greener alternative for blockchain networks as it does not require brute coin hashing (mining process). Also, thanks to the use of the PoS system, development of the blockchain is not dependent on equipment. PoS blockchain is based on stake pools, which are made up of users who come together and use their coins to validate blocks on the network. In return, users are rewarded with their own assets of that blockchain. The process of placing a cryptocurrency is simple and does not expose users to any risk.
In addition to using a PoS system, Cardano ensures that the network can be easily scalable thanks to the way the blockchain is developed.
The network has two layers - the Cardano Settlement Layer (CSL) and the Cardano Computing Layer (CCL) - unlike most other networks that operate on only one layer. The CSL layer records and performs transactions on the blockchain, while the CCL layer is the smart contract layer that performs automatic transactions. By design, the Cardano blockchain can execute faster transactions and have lower fees.
In today's market, most cryptocurrencies strive to find the right balance between security, speed, and decentralization. But few are successful in dealing with all of these problems. Cardano seems to be one of the few. And the platform is constantly evolving.
What makes Cardano unique?
Cardano is one of the biggest blockchains successfully using a Proof-of-Stake mechanism, making it less energy-intensive than PoW.
The project prides itself on the fact that all developed technologies go through a peer-reviewed research process, which means that bold ideas can be challenged before they are implemented. This academic rigor helps the blockchain to be stable and durable, increasing the chance of potential pitfalls to be foreseen in advance, according to the Cardano team.
In 2020, Cardano carried out its Shelley update that aimed to make its blockchain "50 to 100 times more decentralized" than other major blockchains. At the time, Hoskinson predicted that this would open the door for hundreds of assets in his network to operate.
Where can you buy ADA?
Cardano is one of the biggest cryptocurrencies in terms of market capitalization, so there are plenty of major exchanges to buy it: Binance, eToro, HitBTC, Bittrex, etc.
Cardano is a proof-of-stake blockchain platform that says its goal is to allow “changemakers, innovators and visionaries” to bring about positive global change.To learn more about this project, check out our deep dive of Cardano.The open-source project also aims to “redistribute power from unaccountable structures to the margins to individuals” — helping to create a society that is more secure, transparent and fair.Cardano was founded back in 2017, and named after the 16th century Italian polymath Gerolamo Cardano. The native ADA token takes its name from the 19th century mathematician Ada Lovelace, widely regarded as the world’s first computer programmer. The ADA token is designed to ensure that owners can participate in the operation of the network. Because of this, those who hold the cryptocurrency have the right to vote on any proposed changes to the software.The team behind the layered blockchain say that there have already been some compelling use cases for its technology, which aims to allow decentralized apps and smart contracts to be developed with modularity.In August 2021, Charles Hoskinson announced the launch of the Alonzo hard fork, causing Cardano price to surge, gaining 116% in the following month. On Sept. 12, 2021, the Cardano ‘Alonzo’ hard fork officially launched, bringing smart contract functionality to the blockchain. Over 100 smart contracts were deployed in the following 24 hours after the launch.Cardano is used by agricultural companies to track fresh produce from field to fork, while other products built on the platform allow educational credentials to be stored in a tamper-proof way, and retailers to clamp down on counterfeit goods.