In the sea flooded with cryptocurrencies, Cardano Coin (ADA) is another one that catches the eye.
Even though it is similar to many blockchain-based platforms, the Cardano platform makes itself different in some ways. Should you care? What is Cardano Coin (ADA)? Let’s dive in!
The Cardano Platform
The Cardano platform was established in 2015. Cardano wants to provide a sustainable and more balanced ecosystem for crypto projects that meet its users’ needs efficiently and helps other platforms integrate well into this ecosystem.
Cardano is a decentralized, blockchain-based system. It is a smart contract-based system and can be used to run Decentralized Apps (called dApps).
It was created as an alternative to Ethereum. The primary purpose of creating Cardano was to create a platform that could handle more transactions at a lower cost. Simultaneously, creators also wanted to protect users’ data by integrating the smart contract infrastructure and distributed ledger technology.
The platform itself consists of two layers to help it become more flexible and easier to maintain:
- The Settlement Layer: It is a ledger to transfer value. It was launched in 2017.
- The Computation Layer: It provides users with the means to execute smart contracts. Smart contacts are the digital legal agreements that will form pillars of future commerce and business.
These Smart Contracts are, however, more secure than that other cryptocurrencies. They are layered and allow low tampering with the data once data is entered.
Communication between the two layers of Cardano is enabled through sidechains.
The Cardano platform also allows its users to create decentralized applications as well as protocols, and instantly send and receive funds with very minimal fees. It uses its proof of stake consensus algorithm called Ouroboros. Developers claim the level of security is similar to Bitcoin, which uses a proof of work mechanism.
What is Cardano Coin (ADA)?
The token used for the transfer of value is called the Cardano utility token or Cardano Coin (ADA). It is similar to most tokens used in various blockchain platforms, but it differs from other cryptocurrencies in its functionalities.
Stake pool operators use Cardano Coin (ADA) in the staking system to maintain the protocol’s security. And the users that stake their ADA tokens on the blockchain use Cardano Coin to verify the transactions.
The active users also get rewards in the form of ADA coins for participation in the safety provision.
For example, Cardano Coin (ADA) holders use their coins to vote on changes or improvements to the protocol. This means they are taking part in its development. On the contrary, the developers use it to power their smart contracts on the Cardano blockchain.
How to buy Cardano Coin (ADA)
As the Cardano cryptocurrency, ADA is not widely circulated; it can be bought on many major platforms. A few of such platforms are CoinSwitch, Binance, and Bittrex. ATMs in Japan will soon allow users to buy Cardano Coin (ADA).
Storing Cardano Coin
As of right now, the storage of Cardano Coin (ADA) can be done only on its official wallet, Daedalus.
The Daedalus wallet is expected to add other cryptocurrencies for storage soon. We can also expect it to facilitate exchange between Cardano Coin (ADA) and other cryptocurrencies.
Pros and Cons of Cardano Coin (ADA)
Like any other cryptocurrency, the Cardano Coin has some benefits and some things to improve.
- It is one of the first blockchains that implements multiple layers for ultimate security and scalability.
- Uses proof of stake instead of proof of work, making it fair and environment-friendly.
- Highly scalable. The number of transactions increases as a greater number of nodes are added to the network.
- Transactions are quicker and cheaper.
- It is still in development, meaning that many promised features are not entirely in effect yet.
- Currently, the maximum number of transactions per second possible is 257. Many platforms allow more than that.
- The Daedalus wallet isn’t perfect. The wallet may turn people away from Cardano.
The Cardano Coin (ADA) is considered to be in the third generation of cryptocurrencies, with Bitcoin and Ethereum being the first two generations. The Cardano platform is similar to Ethereum but consists of multiple layers to separate functionalities.
It was meant to be more scalable and created to provide a faster and cheaper alternative to other cryptocurrencies.
With Cardano Coin (ADA) gaining popularity among cryptocurrency enthusiasts, the future looks bright for this one!
I hope this article helps you and if you have any queries related to it then do leave your comment below. If you have not joined our community then you can now. We are very active there and have been sharing important information there.
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