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What is Cardano? (ADA)

02 February 2018 | 0 comments | Posted by Che Kohler in Money Talks

What is Cardano Coin?

Smart contracts, its kind of a big deal, and this time its not only big in Japan but the world over. The second wave of blockchain technology emerged the moment Ethereum introduced the concept of Smart contracts. Opening up a world of easy to implement token applications meant blockchain was more versatile and easier to access. The ER20 token has been the foundation of many new cryptocurrency tokens like Civic, OmiseGo and Storm to name a few. But just like blockchain, developers had a difference of opinion on where Smart contracts should go and it was only a matter of time before rival technologies emerged.

While Ethereum is the Smart Contract king for the moment, cryptos like EOS, Lisk, NEO, and NEM have also made it the foundation of their existence in a niche or another geo market, Cardano aims to take the concept of Smart Contracts into its the 3rd wave of cryptocurrencies.

What is Cardano Coin (ADA)?

Cardano is a project that began in 2015 as an effort to change the way cryptocurrencies are designed and developed. The overall focus beyond a particular set of innovations is to provide a more balanced and sustainable ecosystem that better accounts for the needs of its users as well as other systems seeking integration. ADA was launched by blockchain development firm Input Output Hong Kong (IOHK) and led by Charles Hoskinson, former co-founder of BitShares and Ethereum. The ADA platform will be capable of running financial applications, smart contracts, and decentralized applications.

The name Cardano is derived from the Italian mathematician, physician and astrologer, Gerolamo Cardano, and the currency, Ada, is named after English mathematician Ada Lovelace. Cardano develops their currency around a Recursive InterNetwork Architecture (RINA).

Why you should pay attention to Cardano Coin?

Ouroboros proof of stake

Cardano uses the Ouroboros proof of stake algorithm to achieve decentralized consensus in its network. Ouroboros is the first provably secure PoS algorithm and, like the larger Cardano project, follows a scientific philosophy and research-first driven approach emphasizing peer review and transparency. The protocol aims at protecting user privacy and addressing their needs as well. In addition, it has developed its first virtual machine (VM) following strategies that worked with Ethereum.

Multi-layer protocol

Cardano has a multi-layer advanced protocol that performs advanced functions. It has two layers, control layer and settlement layer that are well linked with each other. The settlement layer is responsible for having a unit of account of the ADA. While the control layer deals with other work on blockchain – running smart contracts, recognizing identities, assisting compliance, etc.

Proprietary technology

Cardano has a unique Block Explorer, which allows you to check transaction histories. Transactions involving Ada are publicly recorded via the blockchain, letting you see the date and time of the transaction, the amount sent, and the sender’s public address. The real version will be launched very soon, and the Cardano Testnet version is already active.

Privacy and regulation

Cardano is the first cryptocurrency that will aim to strike a balance between both protecting the privacy rights of users as well as taking regulators’ need into account. Bitcoin was built to have privacy outside government’s regulations, The vision was to provide complete anonymity for transactions in order to ensure financial privacy and many other coins have followed this philosophy like ZCash, Verge and Monero.

But too much privacy has its own drawbacks. Therefore, the aim of Cardano is to “square the circle” and balance the need for both individual privacy protection and provision for regulatory control.

What is Cardano Coin used for?

Peer to peer transactions

Like the majority of cryptos, ADA makes it easy to send currency and facilitate trade without the involvement of third parties link banks.

Goods and services

Users can spend Ada just as you would any other currency, by using a Cardano debit card. Once you have applied for and obtained your card, you will be able to send Ada from your Daedalus wallet to load your Cardano debit card. The funds will automatically be converted into the local currency of your choice, for example, Yen or Yuan. You can use the debit card to pay merchants as you normally would, whether it be with online retailers or in bricks and mortar stores.

Tokens

Once Shelley and Goguen have been implemented to the data source code the ADA blockchain will be opened up to prospective companies and developers to leverage off the technology. This means companies who believe in ADA as the superior blockchain will be able to build tokens/ ICOs on top of it and enjoy all the benefits Cardano has in play.

Can you mine Cardano Coin?

Cardano uses the Ouroboros Proof-of-Stake (PoS) algorithm to reach consensus on the state of the ledger instead of the popular Proof-of-Work (PoW) consensus algorithm. In short, it cannot be mined.

Can you earn Cardano Coin?

Staking

Cardano's Ouroboros Proof-of-Stake (PoS) algorithm uses the method of staking to reach consensus on the state of the ledger. Using this protocol, anyone holding a Cardano ADA coin in a native ADA wallet can become a slot leader. All you will need to do is purchase Cardano from an exchange, set up a native ADA wallet, send the coins to your new wallet address and set them up for staking.

Daedalus is the official cryptocurrency wallet that holds Ada Slot leaders generate new blocks in the blockchain and verify the transactions. For every block of transactions, you help confirm you will be rewarded based on how large the stake in your wallet.

Trading

Cardano users can earn digital currency via exchanges. Users can earn coins through trading on different fiat and cryptocurrencies and take advantage of market fluctuations.

Where can you buy Cardano Coin?

Cardano is listed on a range of international cryptocurrency exchanges and is actively traded on websites like:

Should you invest in Cardano Coin?

Cardano seems to be a reliable blockchain platform, thanks to its unique approach of actually using scientific methods in development. It boasts an impressive pedigree and a long-term vision for its blockchain and cryptocurrency. But it is still early days and while they do have a lot going for them, their ambitions to rework what has already worked in the past in such a volatile market could go either way.

The success of the coin will depend heavily on the execution of the vision and then sell that vision to the marketplace as a superior alternative. It is also worth noting that the national research and education network of Greece plans the first Cardano pilot project by verifying student diplomas via Cardano's blockchain so we could see more niche applications build on ADA to showcase its versatility.

I expect more from Cardano in the future between its use of the scientific philosophy, its application uses, its solid roadmap and the fact that it is a fully open source platform.

For more on ADA check out their official website

Contact us

If you want to know more about cryptocurrency don’t be shy we’re happy to assist. Simply contact us

Disclaimer: This article should not be taken as, and is not intended to provide any investment advice and is for educational purposes only. As of the time posting the writers may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency as all investments contain risk.

Tags: Cryptocurrency, blockchain

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