Cardano is a decentralized blockchain built in layers that aim to provide advanced features never seen before. This so-called “third generation” environment includes contract functionalities and has its own cryptocurrency for exchanges: ADA.
Cardano (ADA): the essentials to know
1 – What is Cardano crypto (ADA)?
- Simple principle : Cardano is a decentralized blockchain project built in layers that aims to provide advanced features never seen before. This environment has the particularity that comes from the huge collective of engineers and researchers who ensure the improvement and updating of the blockchain easily using soft forks.
- Use the : Cardano has its own “ADA” token, which allows specifically to run asset transfers. The environment also has other integrated uses (smart contracts, applications…). Thus, they are activated as the ecosystem changes.
2 – The project and the blockchain behind Cardano
- Project : Cardano aims to address the scalability issue faced by traditional blockchains (such as Ethereum and its ever-increasing gas fees). To do this, and by using advanced mathematics and new technologies, Cardano aims to create a new form of so-called “third generation” blockchain infrastructure.
- Blockchain: To achieve this, there are five main steps defined. Each participates in the interweaving of the network, ultimately resulting in a fully decentralized network.
- For phase 1 “Byron”: commissioning of the network with basic functionalities such as ADA token transfer.
- Phase 2 “Shelley”: implementation of a decentralization with nodes managed by the community.
- In phase 3 “Goguen”: activation of smart contracts in the network.
- Phase 4 “Basho”: to improve the scalability and interoperability of the network, sidechains are introduced.
- Phase 5 “Voltaire”: Completing the decentralization of the network with the addition of management and self-financing.
3 – Cardano (ADA) review and opinion
- This “third generation” blockchain solves the scaling issues commonly associated with generation one (Bitcoin) and generation two (Ethereum). Actually, the transactions per second are more and make it possible to reduce costs thanks to its proof of stack protocol called Ouroboros.
- This ecosystem uses a Proof of Participation (PoS) consensus that is less energy intensive than the Proof of Work (PoW) algorithm found in other decentralized networks (up to 4 times more energy efficient than Bitcoin ).
- The operation of its blockchain system is particularly complex, which penalizes the implementation of various desired functions. Because of this, the launch of phase 3 “Goguen” which allows developers to create and feed smart contracts and decentralized applications (dApps) experienced some hiccups.
4 – How to earn or mine Cardano (ADA)?
When it comes to mining, it relies on the Proof of Stake consensus protocol to verify and validate transactions. Thus, participants who put their ADA on the Cardano blockchain can enjoy additional reward tokens.
Additionally, Cardano is one of the most staked cryptos on the market. More than 2000 pools present within the blockchain are dedicated to staking. This is because the Cardano network is fully decentralized and fully owned by the community of its holders.
5- Useful resources
- The Cardano Blog
- Cardano on Medium
- Cardano White Paper
Discussion, forum and chat
- Official Discord
Videos and YouTube Channels
- Journalducoin: video on ADA
Source: The Blog
I am Ben Stock, a highly experienced news writer with several years of experience in the industry. I currently work for The News Dept as an author, where I specialize in market-related stories. My passion and expertise lies in providing readers with accurate and up-to-date information on the latest financial developments from around the world. I have been recognized for my clear writing style and ability to explain complex topics in simple terms that even those new to financial markets can understand.
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