Cardano is one of the most known public decentralized blockchain platforms in the world, along with Bitcoin and Ethereum. This advanced platform’s sole purpose is to provide solutions to key crypto-issues such as scalability, interoperability, and sustainability. Moreover, Cardano uses a proof of stake(PoS) protocol, which is called Ouroboros. As opposed to the proof of work(PoW) protocols used by Bitcoin and Ethereum. In addition, Cardano also works with smart contracts, to secure anonymity and autonomy without the interference of third parties in the background. These smart contracts are to assist the buyer and are one of the perks of using Cardano. Consequently, Cardano and its coin is known for the high attention to legal acquiescence, as well as being the only platform to rival Bitcoin and Ethereum with its innovative technology and completely different approach.
Cardano was established in 2015 by Ethereum co-founder, Charles Hoskinson. Yet, it wasn’t until 2017 when the platform was fully launched. This occurred after breaking ties with the other co-founder, Vitalik Buterin. Moreover, Charles Hoskinson wished for Ethereum to accept venture capital, while Vitalik Buterin wanted to keep it running as a non-profit organization. Consequently, the difference in planning the future is what forced the duo to split. This prompted Mr. Hoskinson to seek a more flexible and reliable alternative to rival the leaders of the crypto-market. And with that, the ADA Cardano coin was born. What is interesting about ADA Cardano, is that it bears the names of 2 distinctive mathematicians and pioneers of the computing field, Gerolamo Cardano, and Ada Lovelace.
After the debut in 2016 with a $600m market cap, through an initial coin offering, ADA Cardano came to live. And in only a year it managed to increase the market cap up to $10b, reaching a whopping $33b in 2018. However, ever since the crypto-market regulation in late 2018, this number is $10b again. Whatever the case, the new approach and revolutionary thinking are the main reasons for the success of Cardano today. For that matter, it took very little for ADA Cardano to become one of the top 3 crypto-solutions for both newbies, and crypto-experts.
What is Cardano & How it Works
ADA Cardano is probably one of the more unique digital coins currently on the market. The main reason for that is definitely the unique PoS protocol or Ouroboros. This revolutionary approach is what contributed to the rapid success of ADA Cardano. Up to such extend, that ADA is currently available for trading on every major trading network. The latest such example is Coinbase, which is consequently the go-to option for US customers. And this new approach seems to work perfectly since even Ethereum is slowly transitioning towards using PoS systems such as ADA Cardano. How ADA Cardano and PoS work, is that it prevents monopolizing and extensive mining. It also prevents crypto-traders to use the same coins more than once, in any given blockchain or transaction.
Additionally, it provides the user an option to stake their coins in pools run by other participants. The unique nature of PoS will help to discover the new ‘blocks’. For Ouroboros to create new blocks, it uses a time-period protocol which is called ‘epochs’. Consequently, each epoch will last for 5 consecutive days. And inside each Epoch, there are 21.600 smaller parts, called slots. That is one slot for every 20 seconds. To achieve this, ADA Cardano’s blockchain operates in two separate layers. This is to fully optimize and process various tasks, thus increase the overall efficiency. Take a look at the two distinct layers that Cardano is using:
- Settlement Layer (CSL): Facilitate peer-to-peer transactions of ADA-native tokens
- Computational Layer (CCL): Serve for executing smart contracts
Cardano Unique Features
Probably the two main reasons for the existence of Cardano, believe it or not, are Bitcoin and Ethereum. In fact, Mr. Hoskinson pretty much created Cardano to provide a better solution for exactly what these alternatives lack. More specifically, the whole purpose of the ADA Cardano coin is to compensate for the leisureliness and rigidness of Bitcoin. Additionally, it also makes for the scalability and security of Ethereum. Moreover, this coin operates with a proof of stake mechanism called Ouroboros. In essence, It is the complete opposite of the proof of work protocols used by Bitcoin and Ethereum. Ona big difference is that the former requires very little energy to operate. Meaning PoS are far more ‘greener’ and practical. To give you an example, Cardano uses 6 GWh annually, which is a whopping 0,01 of the 110.53 TWh, that Bitcoin is using.
Furthermore, the Cardano protocols make for an overall easier and far more advanced experience. The main difference being that, unlike Pos, Pow systems require users to pretty much ‘manually’ find the next block, using special computer equipment. Consequently, the convenience, safety, and Eco-friendliness that come with the PoS protocols are what make ADA Cardano the go-to option for a vast number of traders. For that matter, as of the 20th of June 2021, ADA Cardano is currently available in 2.626 trading pools and has a total value of nearly $31.5b.
How to Buy Cardano
Investing/Buying ADA Cardano is probably the easiest thing out of the whole crypto-trading experience. You should be more concerned as to finding the right approach to tailor the right strategy. However, should you wish to buy this altcoin, then first you probably need to find the right trading platform. Be sure to go for already established networks, since it is always the best solution. We are talking about professional platforms such as Binance, Coinbase, Kraken, etc. Most of these platforms are fairly easy to use, and some do not even require registration. Whatever the case, as soon as you create your account, you only need to deposit/purchase altcoins.
The best thing before starting with crypto is to set a budget especially for trading and go step by step. You wouldn’t want to deposit your entire savings on an impulse, and without proper knowledge of the coin, you are purchasing. Given how easily even the most stable crypto-coins can fluctuate, it is always better to be safe than sorry. Aside from this, actually buying an ADA Cardano coin is no problem whatsoever, given how affordable this altcoin is. Currently and at the moment of writing, ADA Cardano is selling for 1.43, with minimal oscillations. So, if you are on a budget, you can be sure that this one is definitely one of the best crypto-coin options, period.
You don’t become one of the more sought-after crypto-coins on the market without a reason. ADA Cardano is one of the more groundbreaking altcoins out there, simply because it brings something different to the table. And the main reason is, you guessed it: the PoS protocol. This unique and innovative approach is what sets ADA Cardano from its most fierce rivals and counterparts- Bitcoin and Ethereum. As a matter of fact, ADA Cardano takes what Bitcoin and Ethereum lack, and simply fills those gaps. We are talking about the rigidness of Bitcoin and the somewhat shaky safety of Ethereum. Not that Ethereum is not safe. It is just that the PoS system protocols naturally aspirate to make for quite a different and most importantly, Eco-friendly solution.
This is especially important if you compare it with the PoW system that Bitcoin uses for example. In particular, the PoS systems spend literally a fraction of the energy which is required to power the PoW blockchain technology. Naturally, this is another major reason that ‘forces’ users towards using ADA Cardano. Another has to be the availability, or price if you will. Being that Ethereum and Bitcoin are literally worth thousands of dollars to buy them as a whole. ADA Cardano on the other hand is currently available for 1.43. With all of this in mind and the fact that it is one of the big 3 cryptocurrencies, you shouldn’t hesitate to visit one of the leading trading networks and purchase your first ADA Cardano Coin.