Learn more about Cardano (ADA) Cryptocurrency- Its Market, Rise and Future
Presently, there are tons of paper currencies, spent and exchange worldwide; however, the diversity is quite similar to the crypto world. If defined cryptocurrency, it is a virtual or digital currency having no centralized regulating authority. This means creating and transferring money processed without under the regulation of banks. There are currently a number of popular cryptocurrencies including- Bitcoin Cash, Ethereum, Dash, Ripple, Litecoin and many more. In short, there are 1500 recognized cryptocurrencies traded worldwide. According to the statistics, the market of blockchain technology is set to grow over 2 billion US dollars by 2021. Year by year, the market of cryptocurrency is increasing with new coins introduced for the exchange of purpose.
Cardano (ADA) is yet another platform similar to Ethereum which is completely based on blockchain technology. The currency used in Cardano is called as ADA or ADA coin.
What is Cardano?
Cardano is the home of ADA coin or cryptocurrency which is used to send and receive digital funds. Representing the future of money, this digital currency makes direct transfer fast and guaranteed. Cardano coin isn't just a part of cryptocurrency, but is a technological platform that has the capability to run financial applications used by individuals and organizations globally. This ADA coin is constructed in layers giving the system the flexibility to easily maintain. Once the settlement layer is complete, a separate computing layer is built to handle smart contracts. Furthermore, Cardano will also run decentralized applications.
One of the major benefits Cardano blockchain will offer is it will balance the need of users having regulators. This cryptocurrency is created to regular the computing and bring financial inclusion by providing open access for financial service.
The project Cardano began in 2015 and the company behind its development called as Input-Outputt Hong Kong (IOHK), managed by Charles Hoskinson, who was also the founder of BitShares and Ethereum. The concept was clear, to make this ADA coin much better than other blockchains and process better transactions.
The Rise of this Cryptocurrency-
There is no doubt that ADA Cardano is rising quickly and has positioned itself as the leading one among cryptocurrency. The strange thing is, at the time of its inception, there was no heavy promotion in the west. However, the team decided to take an organic approach to attract investors for their ICO. This organic approach helped the team to raise $63 million USD, the maximum came from Japan. Through the empowering communities, the brand ADA has attracted many stakeholders. In fact, many followers have built ADA portfolios, the result of which is witnessed in its growing price and stake.
Since the beginning of 2018, there has been a steep rise of interest for ADA by the holders. One of the positive things is the Coinbase is the entry point for institutional investors which means the chances of coin attracting the investors is really high. In fact, the founder of Cardano (ADA) Charles Hoskinson has prompted the mass adoption. In fact, the team has been tremendously working on its progress. Check out the Cardano roadmap to get a better picture.
The Cardano platform is founded and run by three different organizations- Cardano Foundation, Input Output Hong Kong, and Emurgo.
Presently, Cardano ADA is the eight biggest crypto and is the biggest in the market capitalization. It is structured in 2 layers- Cardano Settlement Layer (CSL) and Cardano Computation Layer (CCL). CSL supports ledger transactions and operates the network's ADA cryptocurrency. CCL, on the other hand, supports decentralized applications and smart contracts. Compared to Ethereum where two layers are joined, in Cardano, these two layers are separated and connected only by Side Chains.
How Does Cardano ADA work?
To know how this cryptocurrency works, we need to again go back to the above mentioned CSL and CCL. Here, the computational layer is adaptable and small changes are different end-users. For instance, different nations carry different regulations. Cardano will change how the data is stored as per the law. To make you understand how both settlement layers work, here is the small example-
- John wants to hire an electrical for fixing living room lights
- John enters into a smart contract agreement stored in the computation layer
- The Agreement states that once the agreement finishes john's living room’s light work, the fund will be released.
- Upon payment, the smart contract is transferred to the settlement layer, allowing the electrician to get paid in ADA coins.
How ADA Coin Transaction is verified?
As mentioned, Cardano platform is completely decentralized, which means, not a single authority has control over the network. In Cardano ADA, the transaction is confirmed using a consensus mechanism called as Proof-of-Stake.
- People wanting to help validate transaction are called as Validators
- Validators need to freeze ADA coins called as Stake
- Higher the stake, higher the chance validator will receive the reward
- The amount of coins received is completely based on the stake
The best things about Cardano stake are that it is much more appreciable than Proof-of-stake blockchains. This is sometimes also called "The Honest Majority", meaning people carry a big stake in the blockchain. This is how transaction validation conducted.
Value of Cardano's ADA Crypto-
The market value of Cardano ADA keeps changing which you need to keep a tab on. A single ADA coin is mostly valued around $0.16 USD and the cap is of $4,255,850,848 USD. Presently, in the market, there are more than 25 billion ADA coins in circulation.
How to store Cardano ADA?
Like every other cryptocurrency, you need to have a purse to keep the currency until you find a buyer and seller. Since there are multiple wallets for Bitcoin, for Cardano, the wallet is Ada called as Daedalus. This can be installed only on desktop and supports Windows and Mac OS. However, in the near future, the makers are planning to transform Daedalus into universal Cardano wallet that can allow supporting other cryptos. Download Daedalus wallet here.
Since it is the official wallet by Cardano, many have faced some issues in the use of this wallet. This includes the user unable to connect to the network and transaction isn't reaching the receiver. Since founders have a complete idea about these issues, they are looking to work on a Cardano roadmap for better working of the wallet.
Is Cardano Scalable?
As mentioned, there are different blockchains in the market, and each is unique in itself. However, one important thing to consider is the scalability. In this industry, scalability is also how many transactions blockchain is able to process. Bitcoin and Ethereum carry big problems with scalability due to the limited amount of transactions happening. For instance, in Bitcoin, one can only process 7, whereas in Ethereum 15. Moreover, once the transaction gets verified on the blockchain, it remains on the public ledger. As the transaction increases, the blockchain ledger keeps on increasing.
Cardano, on the other hand, has a different building blockchain. It separates data which are no more relevant to the people in the transaction. For instance, if Peter sends 150 ADA to John, then they both are only involved in the transaction.
The founders are also looking to install a special protocol called as Sharding. In fact, they also performed a test in late 2017 allowing blockchain to process at least 257 transactions per second. This is certainly bigger than transaction done in Bitcoin and Ethereum.
How it is traded?
Similar to Bitcoin, Ethereum and Bitcoin cash, you can directly transact the coin using bank cards or through PayPal. Moreover, you can also purchase Bitcoin or other cryptocurrency using a bank card. It is important that you have complete knowledge about Cardano (ADA) trading to get the best dealing without any loss.
Cardano ADA is one of the cryptocurrencies which in a real sense, cannot be mined but is Staked. The cardano staking process is easy and is mined using the algorithm called as "Ouroboros Proof-of-Stake. The best thing is the process is less energy and doesn't require much power, which is why the scalability takes place. You can check out more information about Cardano staking of ADA on Cardano's official site.
Comparing Cardano with other popular Cryptos-
Let us now check how Cardano ADA is compared to other cryptocurrencies in terms of value-
- 1 ADA = 0.00002 BTC
- 1 ADA = 0.000330 ETH
- 1 ADA = 0.000186 BCH
Use and Misuse of Cardano-
There is no doubt that Cardano ADA is quite complex in nature, but if it is used rightly and understand its potential then you can certainly make the best use of it.
Let us first check uses of Cardano (ADA)-
ADA Cardano is used in a similar way to Bitcoin for the global payment system. However, no global crypto payment is survived if the transaction is up to 7 per second. If the Cardano blockchain is able to pull out the limit of Tens of Thousands per second then more and more people will engage in the transaction.
The second use of the Cardano coin is creating smart contracts and dApps (Decentralized App). This can be for anyone, from corporates to government.
If the team is able to meet these uses, then the cryptocurrency technology will be perfect in all sense. However, the team has to look upon the confidentiality of the coin to avoid getting hacked.
Since the currency isn’t that strong, there is a high chance of facing criminal activities. Allowing people for transaction anonymously means the platform could turn into laundering. Moreover, there is a high chance of tax evasion because there will be no idea who is involved in the transaction. Moreover, there are cases where people have used cryptocurrency platform for dealing in illegal goods. However, a team of Cardano is working continuously towards the safety of this crypto platform.
Pros & Cons of Cardano ADA cryptocurrency-
Cardano is created by a great team and the founder has already created successful projects before- BitShares and Ethereum
- It is the first blockchain to use multiple layers
- Offers cheap and quick transactions
- It has a consensus mechanism which is environmental friendly than older blockchain
- Many claims that the company makes is quite theoretical
- It has still to grow in terms of transactions as others like Ripple, Stellar Lumens and NEO are processing 1000 transactions.
The Future Picture of Cardano Coin-
Presently, Cardano coin (ADA) is gaining good momentum in the cryptocurrency field the future is certainly a positive one. Keeping a positive view, Charles Hoskinson, CEO of Cardano Coin, believes that the coin will be the first trillion dollar cryptocurrency.
"I would love to see Cardano as the first trillion dollar cryptocurrency and the reason being is that that would effectively mean that we have built a self-sustaining economy.”
The team that is working on its development is largely concentrating on technological improvement.
This shows that the future of the Cardano Coin (ADA) is challenging but positive too in all sense and offers more options for a digital transaction.