Home Cryptocurrency What is Cardano, and Why Is It One to Watch?

What is Cardano, and Why Is It One to Watch?

by Serge Shlykov

The price of Cardano’s cryptocurrency, ADA, has been rising aggressively since late 2020. With the current bitcoin rally bringing the altcoin market back to life, Cardano is making news.

In this guide, we take an in-depth look at the Cardano project, why his cryptocurrency ADA is getting attention, and how you can bet on ADA to earn passive investment income by investing in the cryptocurrency.

What is a Cardano?

Cardano is an open, public blockchain that allows users to create decentralized journals and execute smart contracts. Cardano was developed by a team of developers led by Charles Hoskinson, the co-founder of Ethereum.

Unlike many other blockchains, Cardano didn’t start on blank paper. Instead, it is the first blockchain to be peer-reviewed by a team of academic experts and developed using evidence-based methods.

In its own words, Cardano describes itself as a blockchain platform for transformers, innovators and visionaries, with the tools and technology to create opportunities for both the many and the few, and drive positive change on a global scale.

The Swiss Cardano Foundation oversees the development of Cardano.

Why is Cardano becoming more popular?

Cardano contains features that allow it to compensate for the shortcomings of its competitors. The project approach was to use unique design principles and engineering best practices and create channels for further exploration to achieve the objectives.

This philosophy has allowed Cardano to rise through the ranks and compete with Ethereum for global dominance in the smart contract platform space. While Ethereum remains a link on the path to smart, decentralized, contract-based applications, the protocol has had issues with scaling – such as high gas costs and low transaction speed. Ethereum is trying to solve this problem with a proposed EIP-1559 enhancement scheduled for July 2021 as part of the London Hard Fork, but Cardano has an edge in terms of scalability.

In a sense, Cardano was created to solve the problems with scalability, interoperability and resilience that plague second-generation blockchains like Ethereum.

Cardano uses a Proof of Share (PoS) consensus algorithm to generate new blocks and validate new transactions. The authentication protocol (Ouroboros) consumes less energy than authentication protocols – such as Bitcoin and Ethereum – and helps reduce transaction costs.

Cardano’s blockchain is divided into two layers: Cardano Compute Layer (CSL) and Cardano Compute Layer (CCL), which separates Cardano from the smart contract layer. This two-layer blockchain infrastructure offers high transaction speeds and greater storage flexibility.

The CSL layer, built on top of the authentication layer, facilitates peer-to-peer transactions such as ADA transfers between users. Conversely, the CCL layer meets the computational requirements of the blockchain, enabling smart contracts.

In addition to high transaction speeds, the anti-fraud model offers advanced features such as mathematical security in the selection of the blockchain validator, a secure voting process for ADA holders, and a scalable consensus mechanism.

Cardano’s stellar performance aside, there’s no denying that its recent ADA performance has put the protocol on the radar of many crypto investors. In February 2021, the ADA rate is 2.000% higher than last year. It is interesting to note that February alone accounted for 300% of this increase.

Like other altcoins, ADA passed the $1 mark in early February 2021 and reached $1 on the 27th. February peaked at $1.48. Although the price has fallen back from this level, it has consolidated above the $1.40 level at the time of writing.

Cardano (ADA) is currently the 6th largest cryptocurrency network by market capitalization and is valued at over $40 billion.

Where to buy Cardano

What is Cardano, and Why Is It One to Watch?

ADA is attracting a lot of interest from buyers because of its increasing usefulness in the growing smart contract market. If you are looking to add Cardano to your cryptocurrency portfolio, here are a handful of exchanges where you can buy Cardano (ADA) by wire transfer, credit card or bitcoins.

  1. Kraken
  2. Binance
  3. Coinbase

You can also access ADA trading pairs on exchanges like Bitfinex, Huobi Global, KuCoin and Bittrex.

Cardano race: How to bet with Cardano (ADA)

Cardano uses a unique stacking model designed to achieve true decentralization, something the major cryptocurrencies have largely failed at so far.

Deployment involves buying ADA and then deploying or locking it into a cryptocurrency wallet or exchange to earn interest, called rewards, in the form of additional ADA that helps secure the Cardano network.

There are two ways for a Cardano owner to earn rewards:

  1. delegate their share to another managed operator.
  2. Management of a private swimming pool

Pools can be public or private. A public pool is a node in the Cardanon network with a public address that allows other users to delegate and receive rewards. Private pools, on the other hand, pay only to their owners.

ADA holders who wish to participate and be involved in the matter may transfer their authority to public education. Stack pools can be managed by individuals or companies who have the technical expertise and resources to manage the node in a consistent manner.

The number of shares delegated to a given pool is the primary means by which the Ouroboros algorithm determines who will add the next block to the network and receive a monetary reward for this service.

The more a bid is delegated to a pool of lots, the more likely it is to reach the next block. The rewards earned are distributed to users who have delegated their share to this pool.

To delegate an ADA with a betting pool, the user needs a Cardano wallet. The Cardano blockchain provides full Shelly functionality and integrates transaction metadata, enabling a new era of utility. ADA owners therefore need a Cardano wallet that is compatible with the Shelly protocol.

Cardano portfolios include:

  1. Dedul
  2. ADALITA
  3. Yoroi

To find out how much you can earn by posting your ADA, click here.

The stacking process is the same for all ADA portfolios that support stacking pool delegation, although the process may vary by installation.

The procedure to be followed in order to start using an application such as Dedulus is as follows:

  1. Open the application and go to the Rewards and delegations portfolio section.
  2. Select the delegation center to view a list of your handbags and their delegation status.
  3. The user selects the portfolio they want to delegate and clicks the Delegate command for that portfolio.
  4. The user will be asked to choose his betting community. For information on pool performance, fees, etc., click on the pool’s ticker.
  5. Select the pool you want to delegate and click on it.
  6. Provide a password approving the delegation of pool management authority and the nominal fee required.
  7. It is possible to transfer your share to another pool at any time, but changes will only be made at the end of the period.

ADA holders can also join the Cardano Tumblr pool on some cryptocurrency exchanges like Binance. Stock market betting is an easy way to get a reward for a bet without having to deal with the technical aspects of the cryptographic analysis of the bet yourself.

Baseline

Cardano is positioning itself as a potentially promising alternative to the currently crowded Ethereum network. While it doesn’t evoke the developer and user community anywhere like its revolutionary predecessor, it solves many of the problems facing second-generation blockchains.

The information contained herein is for informational and educational purposes only and should not be construed as investment, financial, legal or other advice. Investing in cryptocurrencies and tokens is highly speculative and the market is largely unregulated. Anyone considering doing this should be prepared to lose their entire investment.

frequently asked questions

What is Cardano for?

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Why should I buy a Cardano?

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