Cardano Cryptocurrency And Why This Maybe The Coin Of The Future
Cardano is a decentralized public blockchain and cryptocurrency project that has been under development since 2015. Cardano aims to build upon the principles of Bitcoin, Ethereum, and other cryptocurrencies by using formal methods, strong academic collaboration, and clear engineering best practices.
The goal of Cardano is to provide a more balanced ecosystem than what currently exists in the vast majority of cryptocurrencies.
Cardano also has a unique consensus mechanism called Ouroboros that operates without proof of work or proof of stake, making it an efficient system with great security guarantees!
The Cardano Foundation has partnered with educational institutions in Japan, South Korea, Vietnam, and Thailand to help educate students on cryptocurrencies and blockchain technology.
They have also partnered with companies like Emurgo who are building commercial ventures on top of the Cardano ecosystem by providing funding for start-ups looking to build their product or service using ADA tokens as well as helping them find talent if needed.
The main selling point of Cardano and what sets it apart from other cryptocurrencies is its research-driven approach and academic peer review with the goal of developing best practices for blockchain technologies.
What technologies make up the Cardano Ecosystem?
Cardano’s technological stack is divided into two major layers:
1) The settlement layer that uses the mining-driven Proof-of-Stake consensus algorithm (Ouroboros) and maintains a global immutable transaction ledger open for everybody
2) The computation layer that enables smart contracts for decentralized applications and helps developers to build their own apps on top of it.
The beauty of this stack is that there are no “on-top” features, all layers work together and have been developed in sync.
So what makes Cardano special?
Ouroboros is one of the few proven Proof-of-Stake protocols available today. In contrast to Bitcoin or Ethereum’s POW consensus protocol, it allows for much higher transaction throughput at lower cost while maintaining the same level of security by design (as opposed to most other PoS protocols where security is an add-on).
The project’s sidechains, treasury system, wallet standardization, and delegation capabilities enable further scalability once PoS has been activated on mainnet.
Why Cardano will be the coin of the future
Cardano has a bright future ahead mainly because of the way it’s designed and built. The developer team behind Cardano’s vision is large, well funded, and has attracted some of the best talents in the blockchain space.
They are building a secure, scalable blockchain that can be used by enterprises to deploy real-world applications with speed, security, and capacity that exceeds current systems.
As opposed to Ethereum or EOS, Cardano aims to follow academic standards when it comes to its code development which adds credibility to its claims as being one of the most advanced blockchains out there.
The fact that Cardano is working on providing ecosystem support through side chains, treasury systems, and wallet standardization will definitely help them integrate easier into existing businesses since they won’t have to make compromises between choosing a platform that does what they need or choosing one that has the infrastructure to give them room for growth.
Cardano is certainly an interesting project and it will be exciting to see how their unique approach plays out. Although there are many other projects competing with Cardano, this one could definitely end up being a winner because of its strong community support (ADA holders).
The Exchanges That Are Trading Cardano
You buy/sell/trade Cardano in exchanges. For example Coinbase, Kraken is a few examples of exchanges you can buy Cardano. Coinbase has an option to buy Cardano with a Credit card, Debit card, and bank transfer.
You can purchase Cardano from Coinbase by following these directions:
From Your Coinbase Account, head to “Settings” and then “Payment Methods” From payment methods, click on the deposit button next to your fiat currency wallet.
For example, if you want to purchase Cardano with USD, tap the Deposit button under USD Wallet.
You will be asked which type of currency wallet you wish to use. Select your preferred method of transfer (i.e., bank account) Enter the amount of money you wish to transfer over to Coinbase Add a description so you can keep track of where your money is going.
After placing the order, the funds should appear in your exchange account within 5-10 minutes after initiating the transfer.
To buy Cardano from Kraken you need to go through this process.
1) Go to the website of Kraken. And choose the currency you want to buy ADA with (in this case Euro, USD etc.)
2) Press “Submit a new order”
3) Put the amount of Cardano you wish to buy in “Amount ETH”.
4) Press “Buy”
5) You will be asked for your password and 2 Factor Authentication.
6) Now you can see your balance on Cardano – congrats!
It’s really a straightforward process to buy ADA from the various crypto exchanges. Once you get the hang of it, you can buy ADA from any of your favorite exchanges.
Why You Should Buy Cardano
One of the main reasons you should buy Cardano is because of its potential. Cardano is also a strong project with a strong team behind it. In the future, as the demand for cryptocurrency rises, ADA is going to be one of those coins whose value will boom exponentially.
Also, you can use Ada coin for making purchases all over Japan since they have partnered up with several big companies in this country. You can shop at Uniqlo or pay your bills at AEON and enjoy other goods and services that accept ADA as a form of payment.
The Cardano project is actually one of the biggest blockchain projects in this world, and it has shown that it has big promise for your growth. Many crypto analysts predict that the Cardano coin will be one of the top 10 cryptos because of its great value.
It is true that Cardano coin, ADA, has had a very rough time during the last couple of months, but it seems like it is already recovering with many analysts predicting another rise within the next few months.
The Risks Involved With Buying Cardano
Even though Cardano may appear to be a great investment, it is important to talk about the risks involved.
The first risk you have to take into account is the fact that Cardano is still a project. The truth is that unlike Bitcoin and other cryptocurrencies, Cardano (ADA) might never be able to reach such high levels of success.
With any cryptocurrency, you must factor in the possibility of failure, and if you are thinking about investing in ADA keep this risk on your mind.
The second risk is the fact that Cardano is still an untested currency. You can invest in it right now, but more than likely you will not be able to use it for its intended purpose (buying things using Cardano). This might not happen for a long time, or even never, at least according to some of the most pessimistic forecasts.
The third factor that makes Cardano risky is the high volatility of cryptocurrencies in general. The truth is that buying any cryptocurrency means taking risks because they are very volatile investments. Even though Cardano has shown potential growth it’s important to note that nothing is guaranteed.
One of the main factors that will determine whether Cardano is a successful investment or not is the decisions made by the IOHK company.
Charles Hoskinson, who was one of the co-founders of Ethereum has created IOHK to develop Cardano and other cryptocurrencies.
Many people have very high expectations from IOHK because its creation means that there are finally solid people looking after another cryptocurrency instead of just random anonymous developers.
However, even if IOHK manages to achieve its goals this will happen within at least two years according to their own estimates.
All these things make investing in Cardano risky because you don’t know how well it will actually perform over time. At the same time, there are many reasons why you should at least consider investing in Cardano as a long-term investment.
The biggest reason is that Cardano appears to have solid backing from investors who believe in the project and want to make it a success. However, an even bigger reason is that Cardano’s official roadmap includes many updates scheduled within the following two years.
This means that if you invest in Cardano now you should be able to see a return on investment. It is not an exaggeration to claim that the biggest competitor for Ethereum right now is actually Cardano or some other cryptocurrency that will manage to deliver scalable smart contract platform first – and quickly too!
Cardano vs Ethereum
Comparing Cardano and Ethereum is a big mistake because both are different projects with different goals. That being said, there are some similarities between them that you should know about. Let’s take a look at how they compare to each other.
The first thing people will tell you is that Cardano might be called Ethereum’s equal when it comes to the market cap. At the time of writing this article, these two cryptocurrencies have almost identical market caps – at least if you count in all coins including those held by the teams themselves (which most investors do not).
Another thing worth mentioning is that even though Cardano has a similar number of coins as Ethereum does (and more than half of them are currently locked), its price per dollar is significantly lower. This means that they have plenty of room for growth, which makes them an attractive investment option now for those who are thinking of the future.
When it comes to capitalization, there are only a few cryptocurrencies that are higher than Cardano right now. However, some people might argue that even though NEM is fourth by market cap – this doesn’t mean much as more than half of its coins are held by one company/person (and thus not traded on exchanges).
Another thing about ADA is that they have their own payment network which has been dubbed ‘the Ethereum killer’. Well, let’s see what these two currencies have in store for us.
Cardano was designed to solve pretty much all issues Ethereum currently has – scalability being the first on the list. This platform has been designed in layers, with each layer having its own functionality which can be upgraded without causing problems to the lower ones.
The network is incredibly secure as it uses cryptography that even military organizations use (known as provable security). It’s worth noting that right now for this technology to work there needs to be a trusted setup ceremony where the network parameters are created; however, Cardano plans on changing this by using an implementation of zero-knowledge proofs.
The Future Of Cardano
Many will say that the future of Cardano is bright as it is one of the most promising projects out there. They are trying to solve all the problems that other cryptocurrencies face and even more, so they think that eventually, Cardano will be able to overtake Ethereum as the number 1 smart contract platform just because of its scalability.
The project has a pretty large community backing it up and according to their roadmap things should keep going smoothly for them, but only time will tell whether this prediction is right or not.
With its projected growth, Cardano can easily get into the top 5 projects in terms of value if things keep going well. Of course, this is all subjective and never guaranteed, so always be sure to be checking the forecasts and staying abreast of the information available with Cardano and all of the other competing cryptocurrencies.
Even if Cardano’s project is expanding, any bad news regarding other cryptos can, in turn, affect the value of Cardano and others so watching the news and markets should play a big factor in determining when it’s time to buy/sell or trade Cardano.
In the meantime, you could start by reading the official Cardano roadmap and their whitepaper. This will give you a better understanding of how Cardano works and what can you expect from it in the end.
