Launched in 2017, Cardano is a blockchain platform that processes transactions via ADA, its cryptocurrency. The platform handles all types of transactions and strives to evolve as the “Internet of Blockchains,” by establishing an ecosystem that makes way for smooth conformity among various blockchains.
Cardano ADA was founded by Charles Hoskinson, who’s also the co-founder of Ethereum. He launched the platform to be an even more interoperable, scalable, as well as sustainable blockchain, with the intention of enhancing both Bitcoin and Ethereum.
The current development of Cardano ADA is backed by the Cardano Foundation and the IOHK research institute. Already among the rapidly-growing crypto assets, Cardano ADA deploys a PoS consensus mechanism. The platform allows developers to create decentralized apps and smart contracts.
Replying to Alex Hammer, a leading expert in generative AI, Hoskinson defined Cardano as an open platform to offer economic identity to those who lack it.
Charles, please explain the essential value proposition of Cardano in one sentence.
— Alex Hammer (@AIHammer) August 2, 2020
Before moving further, let’s take a look at recent news and updates surrounding Cardano.
- The price of Cardano ADA is anticipated to spike over 100% by January 31, according to Cryptoglobe’s report.
- Significant upgrades to enhance DeFi are expected by investors from Cardano in 2023.
Take a look at the roadmap of Cardano in the points below:
- Cardano ADA initially started in 2015 as a research project with a focus on exploring ways to improve cryptocurrencies.
- Cardano ADA was released in 2017 with the Bryon phase and only supported ADA transactions.
- The next phase is Shelley, which was launched in July 2020 to enhance the decentralization of the network and allowed owners to stake ADA.
- Goguen, the next stage, adds support for smart contracts through native coin issuance and Alonzo hard fork.
- The final stages include Basho and Voltaire. While the former focuses on scaling, the latter is all about on-chain governance.
How does Cardano work?
Cardano authenticates blockchain transactions with Ouroboros, a PoS protocol. In PoS, stake, owners of a blockchain coin can set up their network node and be the validators. To do so, they have to stake their crypto coins.
The Ouroboros protocol pseudo-randomly picks a validator node for every block of transactions that has to be verified. The more ADA coins owners stake, the more their chances of being picked.
Once a validator node has confirmed a block of transactions and added them to the blockchain, it gets the block reward, which is paid in ADA coins and offers incentives to coin owners.
Before any technology is incorporated by Cardano, the particular technology is carefully researched, and the research is then peer-reviewed.
Uses of Cardano
A number of features are enabled by Cardano on its platform. Take a look at some crucial ones:
With Cardano, people can skip the middlemen like financial institutions and banks and can directly transact on a permission less basis with other individuals and entities.
Cardano allows trading, insurance, lending, asset management, and many other financial services, as a part of decentralized finance.
Hence, Cardano can be considered a coin that backs various financial solutions and is not just a currency.
What makes Cardano ADA unique?
What differentiates Cardano ADA from other cryptocurrencies is that it emphasizes on peer-reviewed research besides evidence-inspired ways in terms of its development. Unlike the usual crypto market that goes fast, Cardano ADA takes it easy and moves slowly based on a methodical approach. This helps the developers identify possible threats.
Because Cardano is using a proof-of-stake protocol to authenticate transactions for a longer time than others, the network has earned a reputation as a “green” cryptocurrency, something cryptocurrencies that use proof-of-work are not.
Unfortunately, not everything about this approach is rewarding. Taking a longer time in the development process can push it behind others. Moreover, critics believe that the peer-review system has problems of its own.
The blockchain chain has entered into some interesting collaborations over the years. A few of them are mentioned below:
- The Ethiopian government has collaborated with Cardano to give the school students of the country blockchain-based IDs. This move will help to record and track their academic performance on the blockchain of Cardano.
ETHIOPIA PARTNERSHIP: Blockchain comes of age with the world’s biggest #blockchain deployment ? Tech rollout to 5 million Ethiopian students bringing unique new solution to improve educational outcomes and futures #Cardano @IOHK_Charles @jjtoconnor @DrGetahun ✍️1/3
— Input Output (@InputOutputHK) April 27, 2021
- Veritre, a global reforestation firm, uses the Cardano blockchain to store the record of every tree it plants.
Thrilled to announce that we’ve partnered with Veritree to register all of its global land restoration efforts on the #Cardano #blockchain ➡improved transparency ➡immutability ➡auditability ➡easier protecting & tracking??https://t.co/mPUoOUYYEU pic.twitter.com/ta3ljUcHa3
— Cardano Foundation (@Cardano_CF) September 25, 2021
- To offer digital identity services to customers, DISH Network has integrated the Cardano blockchain.
Announcing a landmark partnership with @dish, bringing the world of global telecoms and the #blockchain space together. It’s the first collaboration of its kind, unlocking significant value for DISH’s customers while growing adoption for #Cardano
— Input Output (@InputOutputHK) September 25, 2021
- Cardano is also working with Rival, an esports company, to help it both mint and distribute NFTs.
— Rival (@GoRivalGames) September 27, 2021
Pros of Cardano
Here are some of the major benefits of Cardano.
Smart contracts are easily accessible
Smart contracts refer to financial agreements recorded and functional on a blockchain. Usually, technical expertise is needed to create smart contracts, but Cardano’s Marlowe language enables business and financial experts to create them even without being technically sound.
Earning via staking
Being a new generation crypto project, Cardano is underpinned by the concept of PoS. Usually, PoS cryptocurrencies motivate owners to stake their holdings and support in verifying transactions on the blockchain. As a result, owners can earn crypto without having to buy more.
Cons of Cardano
Like everything else, Cardano too has a few disadvantages, such as:
New or unreleased features
Cardano creators follow a calculated approach when it comes to launching features on the network. Moreover, some major features that will add more to its potential are in their initial stages.
Less transparent development process
Decisions are made off-chain by the Cardano Foundation and IOHK, which makes the governance of Cardano less transparent.
How to Buy Cardano
Cardano ADA can’t be purchased, rather, ADA is purchased. To buy ADA, it is required to sign up for an account with a reputed crypto exchange. After making the purchase, the ADA can be stored on the platform or can be moved to a crypto wallet.
The Cardano Foundation has the strong support of the developer community, guided by Hoskinson, and many investors around the world. Cardano may touch new heights, thanks to consistent development in the Cardano ecosystem as well as in the crypto asset market.
However, since crypto assets are extremely volatile, a careful analysis before taking any step regarding investment is highly suggested.