What is Cardano (ADA)?
Future of ADA Cryptocurrency and know how to buy ADA
#1 - What is Cardano?
We’ve seen Bitcoin - which is a blockchain based financial system. We’ve also seen Ethereum - which is a blockchain based Smart Contracts system. Now picture a system that could do both, in a more efficient way.
Cardano: The Basics
Cardano is a decentralized, blockchain based system, powered by the ADA coin, the cryptocurrency which runs on the Cardano platform. Much like Ethereum, it is a smart contract-based system and can be used to run Decentralized Apps (called DApps). But Cardano is a layered system; i.e.
- It has a separate layer which runs ADA exchange, and
- A separate one which runs the Smart Contracts.
Cardano claims to be the first cryptocurrency which runs on a scientific peer review, which ensures its safety.
- Not surprisingly, Cardano was developed by Charles Hoskinson, one of the co-founders of Ethereum, and its development is funded by Input-Output Hong Kong.
- Ethereum can be called a second generation cryptocurrency (with Bitcoin being the first), the Cardano cryptocurrency can be considered third-generation technology.
- The aim of this project is to create a sustainable ecosystem which separates transaction of ADA coin and usage of smart contracts into different layers, and on improves the shortcomings of Bitcoin and Ethereum.
What exactly is the Cardano coin - ADA?
- ADA is the digital currency which fuels the Cardano platform.
- Its primary motive is to provide quick and safe currency exchange and allow users to operate various Smart Contracts and applications seamlessly.
- IOHK, along with a Japanese company Emurgo, began developing Cardano in 2015, and its first layer, Byron was released in 2017, which is the layer for ADA. It is pre-capped at 45 million.
- Cardano is an attractive choice for many companies and corporations, especially those involving heavy uses of contracts. According to Cointelegraph, the Ethiopian Government and Cardano/ADA signed a Memorandum of Understanding, which will allow the government to employ the Cardano program in its Agritech sector.
The Bitcoin Magazine stated in an article that diplomas in Greece may soon be given as a way of a customized Cardano network, which will be privatized, and allow only registered students to obtain a diploma. As the information will be stored in an unalterable form, it will be easy to check who holds a genuine diploma. Reliability, speed, and safety are three of the major selling points which have brought Cardano/ADA into the eyes of the companies and cryptocurrency enthusiasts. The different layers in the program which allow it to separate transaction and execution allow for a safe and quick system, making it a much-made choice amongst those who require trustworthy systems to execute large financial contracts.
#2 - What are the Benefits of Cardano?
- Cardano is the first peer-to-peer transaction system based on scientifically tested theories. It aims to combine the transactional properties of Bitcoin with the Smart Contract and the DApps system of Ethereum.
- According to The Bitcoin Magazine, Hoskinson is working to develop a different language for the Smart Contracts powered by Cardano, calling it Plutus, which will have strict contracts which cannot be altered without the consent of either party.
- Cardano’s transactional processes work on the basis of Smart Contracts. These Smart Contracts are, however, more secure than that of other cryptocurrencies, as they are layered and allow very less tampering with the data once entered.
- Since they are based on blockchain technology, the systems will be decentralized, and not reside with restricted individuals. Once the information is stored, contract executed, or transaction performed, it will be stored permanently in the ledger.
The DApps created on this platform use ADA as their currency in the application’s virtual ecosystem, and use its Smart Contract technology to create an interactive, virtual economy.
#3 - How do you Buy and Store Cardano
- As the Cardano cryptocurrency, ADA, is not widely in circulation, it can be bought on a few of the major platforms, such as CoinSwitch, Binance and Bittrex, ATMs in Japan will soon be available to buy ADA. Other major platforms include KuCoin, Cryptopia and more - all of which are available on CoinSwitch. You can buy Cardano with Bitcoin from CoinSwitch at the best rate.
- Currently, the storage of ADA can be done only on its official wallet, Daedalus. It is expected to soon add other cryptocurrencies for storage, and facilitate exchange between ADA and other cryptocoins. Download the Daedalus wallet here.
- CoinSwitch offers a safe platform for the exchange of cryptocurrencies and allows you to compare various exchange rates to be able to get the best deal. It also allows you to store your coins in your private wallet, offering far more security compared to an exchange wallet.
#4 - What is the future of Cardano?
Cardano opened for trading in October 2017, at a price of $0.025. Within just 3 months, it had peaked at $0.718 in January. That’s a growth of nearly 28 times - fairly impressive even by cryptocurrency standards. Here is the price movement of ADA over the time:
May 30, 2018
May 01, 2018
Apr 01, 2018
Mar 01, 2018
Feb 01, 2018
Jan 01, 2018
Dec 01, 2017
Nov 01, 2017
Oct 03, 2017
As the Cardano system is still in development stages, it is hard to predict what its growth trajectory will be. However, as it seems to combine the best properties of all cryptocurrencies, the future of the Cardano program is quite bright, and it might see adoption by many corporations.
Also Read: Complete Analysis of Cardano | Live Cardano (ADA) Price Charts & Predictions
#5 - How is Cardano Different?
- While still in its developing stages, Cardano is termed as the third generation cryptocoin, with Bitcoin and Ethereum being the first and second respectively.
- While it is similar to Ethereum in concept, it comprises several layers, which are used to separate its various functions.
- Bitcoin-like peer-to-peer transactions are comprised in one layer, whereas Smart Contract execution is in another. The Smart Contract system of Cardano could very well be faster and smoother, as it will employ the use of a new language, Plutus.
#6 - Should you Invest in Cardano?
- Even though it is a new virtual currency, the Cardano cryptocurrency has made a name for itself in the market. The supply is capped at 45 million ADA coins.
- Since the cryptocurrency is still in its growth phase, an immediate Cardano investment might not be the best idea. However, in a short period, Cardano should be at a stage where it will be at its peak.
- As the price is not currently high, investing in the ADA cryptocurrency platform would cost less, and yield great results in the future.
Frequently Asked Questions (FAQs)
Q. What is Cardano used for?
A. Cardano blockchain can be used to send and receive ADA enabling fast digital and secure transfers. Cardano will also run decentralized applications, or dapps, services not controlled by any single party but instead operate on a blockchain same an Ethereum.
Q. What does ADA Cardano do?
A. Cardano is not a profit regulated entity that focuses on standardizing, protecting, and promoting the Cardano Protocol technology.
Q. What type of coin is Cardano?
A. Cardano is similar to Ethereum, which offers security and scalability through a layered architecture.
Q. Can you mine Cardano?
A. You cannot mine Cardano because it does not work on Proof of Work consensus mechanism but you can stake Cardano to mint it.
Q. Is Cardano Proof of Stake?
A. Yes, it uses the Proof of Stake (PoS) consensus mechanism.