Cardano

Cardano is one of the most popular cryptocurrencies with a large market capitalization, however, the explanation to the question "what is Cardano?" may seem lost on many engagers of the crypto market. Cardano is a public Blockchain system that operates as an ecosystem with the aim of aiding change and progress in several human interactions. Its major focus is on the initiation, execution, and sustainability of the power redistributive process that decentralizes financial resources from unaccountable financial institutions to individuals.

Key Points

• Cardano is a Blockchain protocol system while its currency is called ADA.
• Cardano is a Proof-of-Stake blockchain platform that runs a decentralized, strictly online system
• The Cardano blockchain is home to several decentralized technologies, groups, ecosystems and applications. It provides mechanisms that ensure the thriving state of the assets hosted on it.
• It is a pioneer system in that it was founded on peer-reviewed research and is maintained through facts from evidence.
• By market value, Cardano is one of the 10 largest cryptocurrencies.

How Does it Work?

Cardano is a blockchain mechanism that provides sustainability, security, and thriving capacity to the decentralized digital assets hosted on the blockchain. The Cardano protocol maximizes security through the Proof-of-Stake system called Ourobos where blockchain users (validators) voluntarily play the role of verifying transactions on the blockchain through staking and they are in turn compensated with rewards (crypto tokens).

The protocol maintains a check and balance system such that in the event that validators make erroneous approvals, these validators may lose their money. Hence, the Cardano mechanism created a reliable and error-free network of transactions. The integrity of the protocol is amassed through the Proof-of-Stake system to improve the size and popularity of the network.

Meanwhile, ADA is primarily a tool of exchange and valuation of assets. Beyond this however, it is used as a tool to aid the operations and goals of the Cardano protocol. Ada jointly empowers the development and running of the decentralized app hosted on the Cardano blockchain.

Cardano, just as Bitcoin maintains a fixed supply of cryptocurrency for circulation (21 million coins for Bitcoin). This is, however, different from the distribution procedure of Ethereum and Dogecoin. These systems set limits to issuance on an annual basis. So, they maintain unlimited total supply.

Cardano maintains a stack of layers where the internal currency - Ada is positioned on the settlement layer that monitors transactions. The computation layer is the second layer and it aids the functionality of smart contracts and the dapps hosted on the system. Cardano uses a UTXO ledger model, (EUTXO) in facilitating the computation layer.

What are Cardano Native Tokens?

ADA is the official currency on the platform. One unit of ADA consists of several subunits called Lovelaces. Hence, one ADA equals 1,000,000 Lovelaces. However, aside from ADA, there are certain other native tokens that the Cardano Blockchain interacts with.

Native Tokens are custom assets that do not require the use of smart contracts. The blockchain possesses the inbuilt ability to create, delete, and interact with these tokens natively. These native Tokens serve as the source of functionality for the Multi-Asset (MA) support feature of the blockchain.

A Brief History of Cardano

Cardano was founded by Charles Hoskinson in 2015. It came as an offshoot of IOHK; a blockchain-engineering company with the primary aim of developing Cardano. The initiator of the Cardano project was a co-founder of Ethereum- a second generation, widely popular cryptocurrency. The Cardano blockchain is named after an Italian mathematician- Gerolamo Cardano likewise the currency ADA. It was named after an English mathematician - Ada Lovelace. The system is managed by the Cardano Foundation in Zug, Switzerland. It became the first large cryptocurrency to adopt the Proof-of-Stake blockchain instead of the Proof-of-Work alternative. Even now, it is the largest Proof-of-Stake protocol. As of 2017, Cardano had a market capitalization of over $10 billion. It reached $33 billion in 2018, $77 billion in 2021 and presently has over 45 billion coins in supply today.

The blockchain as well as the currency has found application in several transactions and deals. The protocol partnered with several universities on blockchain research and development of practical learning environments for university students. In 2020, IOHK made a donation of $500,000 in ADA currency to the University of Wyoming in support of its development of blockchain technology. The decentralized system maintained by the protocol is rooted in the blockchain technology. The blockchain keeps an open record of transactions, tracks the movement of crypto assets, and verifies every transaction using the Proof-of-Stake system.

What is ADA?

ADA is the Internal cryptocurrency used on the Cardano blockchain. It got its nomenclature from the first computer programmer, who happened to be an English mathematician and daughter of Lord Bryon the poet in the 19th century - Ada Lovelace. ADA is an easily accessible, public, and decentralized digital currency with topnotch security and transparency.

Holding an ADA coin is tantamount to holding a stake in the Cardano network and earning rewards for it. When the further development of the blockchain is executed, ADA may soon find multiple utilities for several services and DApps that will be hosted on the Cardano platform. ADA is available for sales and purchase on several crypto exchanges around the world.

What’s Next for Cardano?

According to the roadmap outlined by the Cardano team, we can soon expect some upgrades in features and capabilities. With the deployment of Cardano Goguen and the Cardano Alonzo mainnet hard fork, we expect the Basho upgrade soon.

The Cardano Basho upgrade is set to improve the scalability of the protocol. It will achieve this with the addition of side chains to the main chain to reduce its pressure. After the execution of this, we can now expect the final development stage- the governance stage- Voltaire. The phase will introduce a separation from IOHK's control and holders of ADA will now gain voting and treasury rights in the decentralized network.

How to Use Cardano

Cardano can be used to effect the exchange of goods and services through ADA as a payment instrument. It can also be used to host digital assets and smart contracts.

Cardano Pros and Cons

Cardano like other crypto currencies have their high-sides and low points. With that being said, let's examine the risks and potentials of the Cardano network.

Pros

• Cardano runs on the wings of a reputable, well-versed, and experienced team. Although only a third-generation protocol, its founder: Hoskinson, has been in the business of the cryptosystem for decades. He was a co-founder at Ethereum, a second generation system.
• The adoption of the Proof-of-Stake system is proof of the environmentally friendly procedure with which the protocol operates. It doesn't require as much energy consumption as some of its Proof-of-Work alternatives like Ethereum and bitcoin.
• The peer-reviewed system of the Cardano network is worth emulating. The protocol follows a system that runs a test on each upgrade to the system before it is let out to the public.
• Cardano is a platform that you would consider as 'substance over hype'. It is the type of crypto network to leverage on its service offerings and uniqueness rather than overstating its existence or use. It is no wonder the protocol is ranked among the top ten largest crypto platforms. This is at a point where it has not fully deployed all its offering.

Cons

• Cardano is still in its early days. As a third generation, pioneering network, it arrived on the crypto scene quite late and has adopted the peer-review system that somewhat delays deployment and execution processes. So, there's a backlog of plans.
• The Ambitious scope of innovation may be another point of concern about the system. Cardano has very lofty, trendsetting plans and visions which may or may not be realized.
• Cardano undoubtedly has a large community of competitors within its sphere of influence.
• It missed out on the first-mover advantage enjoyed by platforms like Bitcoin.

How to Exchange Cardano

To buy or sell ADA, you have to first identify some exchange platforms that support Cardano. There are several platforms, however, it's best to take this decision based on reviews. A bad choice of an exchange platform can ruin the exchange experience. Hence, we recommend Swapzone crypto exchange. It is a popular exchange platform with an inexhaustible list of coins for purchase or sale. The platform is easy to use with a customer-oriented interface, flexible features, affordable rates, fast exchanges, and a large community of users.

To exchange, visit the Swapzone, open an account, deposit your funds using your ATM card, PayPal, or any other accepted medium on the exchange. After this, search for Cardano in the search box on the platform, click and buy your desired quantity.