Cardano is a blockchain with a cryptocurrency called ADA and which is based on a different technology both for its programming language and scalability in successive layers, with the purpose of offering a more sustainable and secure ecosystem for intelligent contracts than the one offered by the Etherium protocol, more in line with users and developers who seek greater integration, balance, privacy and decentralisation.Source: personal-financial.com.
What does Cardano (ADA) represent and what is it within the Crypto market?
Cardano as both as blockchain and cryptocurrency, is the competitor of the Etherium blockchain and its crypto the Ether, as a technology to generate and operate with Smart Contracts (see Smart Contracts article) and Decentralised Applications (Dapps) but also to run financial transactions and distributed computing in open source, It was not a coincidence that it was founded by one of the Etherium creators, Charles Hoskinson in September 2015, and was one of the most successful ICOs (see article on ICOs) during 2017, raising nearly 60 million USD.
Its programming language is unique (Haskell) and is based on a scientific approach resulting from very thorough computer research. Its community of developers and engineers is among the most expert in the profession at a global level and they are constantly optimising the code and applications generated under this protocol. The protocol's technical and quality standards are among the most rigorous in the industry and it is characterized by being the most flexible, scalable and secure technically and commercially speaking.
How does Cardano work?
The system that rules Cardano is a double layer system, its transaction ledger has two separated sections, one showing the values transferred which is "the Balance Accounting Ledger" (Cardano Settlement Layer - CSL) and the other that records the information describing why the transaction is carried out, its concept, "the concept Ledger" (Cardano Computation Layer - CCL). Since the calculation part is separated from the information part in each transactions, possible errors are not transmitted from one to the other and this gives it more versatility and flexibility, being able to generate Intelligent Contracts in the CCL layer.
The developers of Cardano have created a programming language (Plutus) in the CCL layer to be used in the creation of Smart Contracts with a higher level of security and flexibility than those under the Etherium protocol, which can also be supported in the CCL layer of the Cardano protocol.
The Cardano system can also work with SideChains such as the KMZ protocol (Kiayias, Miller and Zindros, which are the names of its developers) to transfer funds with added security from the CSL layer linked to the CCL or any other blockchain using this protocol.
Which consensus does the Cardano protocol use as a mining process?
The consensus used by Cardano protocol to mine and validate new units of this cryptocurrency is called "Proof of Stake" (PoS) which is called Ouroboros, different from the "Proof of Work" (PoW) used by the Bitcoin blockchain. (See the article on how Bitcoins are created). With this mining consensus, it is not necessary to have miners to validate and generate blocks and therefore new units of the crypto Cardano, as there is no miners that demand great computing power like in PoW, it is not necessary to consume a great deal of energy to mine Cardano. The block generating nodes and block validators share the rewards in Cardanos and thus the mining process takes place.
The new staking achieved in May 2020, allows Cardano holders to have rewards by delegating their participation or running a stake pool in order to have more Cardanos
Where can Cardanos be purchased and deposited?
The main exchanges where this crypto can be acquired are Binance, HitBTC and Huobi Global, the most common pairs being ADA/USDT, ADA/USD and ADA/BTC, so it can be acquired with fiat currency and with Tethers and Bitcoins. Obviously, the cryptocurrency purchased can be deposited in these exchanges and then transferred to an external wallet specifically designed to store ADAs. However, it is advisable to "hold" (store) the ADAs in your personal wallet outside the exchanges unless you are going to trade with the them.
The non-custodial open source wallet (under the total control of the user) created by the Cardano team is called Daedalus, and therefore it is the most recommended by the Cardano developers since it has integrated the Cardano blockchain and thus it can independently validats each transaction, achieving the maximum security and reliability in each operation without having to depend on third party servers. The Daedalus wallet software is a desktop application (for PC or Mac) and supports all the OS (operating systems).Source: daedaluswallet.io
There is another wallet called Yoroi that can be accessed online through the browser, and it works as an extension for google chrome, edge or firefox, and the user can download the mobile app for Android and iOS.
Exodus, Ledger Nano and Trezor are also wallets that can support ADA for storage and are very recommendable above all the last two which cold wallets since they are not required to be connected.
ADA’s performance in the Crypto Market
The cryptocurrency ADA currently has a market price of USD 0.1085 with a market capitalisation of USD 3.377 billion, a circulating supply of over USD 31 million and a total supply of USD 45 million. This cryptocurrency is on the top 10 of the CoinMarketCap ranking as it can be seen in the table below.Source: CoinMarketCap
In the last 3 months it has had a maximum market price of USD 0.1537 and a minimum one of 0.0758. Since its launch in the last quarter of 2017, it has showed a 400% ROI (Return of Investment). Its highest market price was 1.33 USD in January 2018 and we can keep in mind that it may perform similarly in the future.