The cryptocurrency world has become quite diversified. Gone are the days when only a few digital currencies dominated the market. Currently, there is an array of promising cryptocurrencies, including the Cardano ADA.
What is Cardano?
Cardano is a blockchain platform that runs public smart contracts. Its operation module is decentralised and open. For consensus, one has to show proof of stake. Its currency, ADA, facilitates peer-to-peer transactions.
Importantly, Cardano enables a crypto trader to stand from the rest and use a research-driven method. Its design has a basis on peer-reviewed papers from scholars and computer scientists.
Charles Hoskinson developed Cardano in 2015 under the Switzerland-based Cardano foundation. The launch of the platform took place in 2017. The main idea behind the platform’s development was the acceptance of venture capital and the creation of a for-profit entity as stated by TopBrokerstrade.com financial experts. For this reason, Hoskinson left Ethereum, a venture he had co-developed, to create his venture that promoted the said main idea.
The Cardano platform uses ADA as its digital currency. During the onset days of the platform, its market cap was $600 million. As of 2017, the market cap had shot to $10 billion. In 2018, the value had risen to $30 billion, but the general control of the crypto market reduced the value back to $10 billion.
According to its founder, ADA is fast, flexible, safe, and scalable, unlike most other cryptocurrencies.
What is The Cardano Price?
As of April 27th, the price of Cardano ADA was $1.32. A month ago, the closing price was $1.18. So, it is evident that the currency is garnering mileage in value. If the trend holds, then it will keep on increasing in price into the unforeseeable future. The price alters and changes.
Technical Aspects of Cardano
What makes Cardano an honest block chain? The platform uses the Ouroboros technology in its proof of stake instead of the proof of work system that other platforms employ. So, Cardano employs the first blockchain entry, and it is the longest blockchain making it an honest blockchain ledger.
The Cardano platform operates in layers. ADA is a settlement layer that tracks transactions. The computation layer comes second, and it runs smart applications and contracts. The other unique aspect of Cardano is that it uses design principles instead of white paper to overcome issues that other cryptocurrencies experience, including scalability and regulatory compliance.
Lastly, the Cardano platform employs crowdfunding even though it can still operate a private initial coin offering that does not require public participation. Overall, you will need significantly small energy while operating the Cardano platform than when utilising other crypto platforms. The earlier uses the proof of stake approach while the latter uses the proof of work approach.
Placing The Cardano at The Top of The List
Cardano stands as the most recent generation of blockchains. The following was the evolution process:
This generation saw the development of Bitcoin that revolved around the concept of sending money. It was a solution to the problem of sending money through a middleman, such as an altcoin dealer. Thus, it brought about the existence of a decentralised blockchain.
When Bitcoin came up, it decentralised the system of money, making it easy for one to send money without an intermediary. However, the major drawback with the Bitcoin blockchain is that it only allowed monetary transactions without any conditions. Thus, you could send Bitcoins without instructing the receiver about the conditions of receiving the currency.
The development of Ethereum saw the entry of smart contracts in the market. Smart contracts enable you to exchange valuable things, such as money and shares, in a conflict-free and transparent manner without the intervention of a middleman.
The introduction of Ethereum proved that a blockchain could evolve to become more powerful and meaningful instead of remaining as a simple payment mechanism.
However, similar to the first generation, the second generation had a share of drawbacks. The problem with the second generation is that it did not feature scalability. So, it was hard for it to accommodate the interesting use cases of blockchain that increasingly kept emerging.
The next drawback is that the governance system of the second generation was not well planned.
Cardano represents the third generation with the capacity to resolve the governance issues that the second generation featured. Not only does it address the problem, but it also incorporates the positive aspects of the first two generations.
Thus, Cardano aimed at solving three issues, namely:
- Interoperability, and
Regarding scalability, it addresses throughput, data scaling, and network. The throughput had to exceed the unaccepted level of up to 20 transactions per second that Bitcoin and Ethereum managed at the time.
The improvement of the network denotes the expansion of the bandwidth. The main aim was to scale up the network to accommodate millions of users instead of maintaining a homogenous topology of a network. Lastly, with data scaling, Cardano aimed at compressing data that users require without compromising the security and assurances of the transactions.
Regarding interoperability, Cardano held that one token cannot rule the long and short interoperability. Thus, Cardano uses metadata, attribution, and compliance in its interoperability. The metadata provides the transactional history, while the attribution records the names of the people that took part in a transaction. Lastly, compliance checks the legitimacy of a transaction.
Regarding sustainability, Cardano addressed how to pay for future growth and development.
Given the scientific philosophy and the academic research based on peer-review, Cardano features a unique sense of development. The overarching objective of its development system was to employ a high assurance code that will prevent any future governance system issues.
The Cardano Philosophy
The team that developed Cardano used a set of philosophies and principles rather than using a white paper. It used a collection of design principles, innovative processes, and the best practices of engineering.
Some of the principles that the team employed include:
- Use of different layers to separate computation from accounting.
- Selective implementation of the components found in a highly modular functional code.
- Small teams of developers and academics that competed with peer-review research.
- The heavy dependence on interdisciplinary teams.
- Accountability for multiple assets that appear on a single ledger.
Cardano uses an equation to calculate the fees of transferring ADA. When calculated, the minimum fee that you can pay equals a constant ADA added to a continuous ADA per each byte multiplied by the total number of bytes. The system pools the fees and forwards them to the respective pool leaders.
The Bottom Line
From the discussion, it is evident that Cardano ADA stands as the best crypto to buy. Its supporting platform is superior to other existing platforms in several ways. Additionally, the Cardano platform seeks to solve the issues that other platforms feature. For this reason, Cardano stands out from the rest.
Importantly, Cardano does not stand on a white paper. Instead, it stands on science, making it more competitive than the rest of the platforms. It is also worth mentioning that the founder of Cardano adds more credibility to the platform given his prior experience and achievements.
Thus, it is time to shift to the platform that comes packed with several perks.