- 1 What is Cardano (ada)?
- 2 How does Cardano (ada) work?
- 3 Who created Cardano?
- 4 What is the difference between Cardano and Ethereum?
- 5 Where can you buy Cardano (ada)? What exchange can I purchase Cardano?
- 6 Where can you store Cardano? Does Cardano have a wallet?
- 7 Can Cardano be mined? How to mine Cardano (ada)?
- 8 How is Cardano different from other cryptocurrencies?
What is Cardano (ada)?
Cardano is a smart contract platform that uses a decentralized and public blockchain and a completely open source protocol. It is a one-of-a-kind platform since it was the first blockchain created on a basis of academic research and scientific philosophy.
It uses a unique programming language known as Haskell that allows for a margin of error unlike most others. Its developers believe that the unknown future of the blockchain technology and complexities that may arise will call for a flexible coding structure that has a high fault tolerance.
The platform offers high transaction speeds and security features. Its initial plan is to integrate with mobile gaming platforms and casino while in the future it hopes to create a native debit card and other applications.
How does Cardano (ada) work?
The Cardano protocol is based on a layered protocol that separates values of transactions from the reasons behind the transactions. This concept makes it easy for a business using the model to execute flexible smart contracts to suit specified use cases.
The first layer is referred to as the Cardano Settlement Layer and is an improved version of the bitcoin protocol. It makes use of a proof-of-stake consensus algorithm known as Ouroboros for transaction confirmation and new block generation.
The second layer known as the Cardano Computation layer bears the information on why specific transactions take place. This makes it possible for instance, to create a permissioned database that rejects transactions that do not meet a specific criterion. This could come in handy when blockchain regulations take effect to govern transactions within the space.
Who created Cardano?
Cardano is the product of three organizations:
The Cardano Foundation – This is an independent body based in Switzerland and tasked with the regulatory and commercial aspects of the project. It also offers support for the network’s users.
Emurgo – this is a company that has varied investments in a number of start-ups. It also assists commercial entities that plan to build on the Cardano smart contract platform.
Input Output Hong Kong (IOHK) – this is a market leader in crypto research and development. It has been awarded the development contract for the platform until 2020.
One of the most popular names behind the project is Charles Hoskinson, formerly the CEO of Ethereum. He was one of the early founders of the Ethereum platform but left to form his own company, IOHK and is currently its CEO.
What is the difference between Cardano and Ethereum?
Cardano and Ethereum are both smart contract platforms upon which multiple decentralized apps can be built. But there are a number of notable differences between the two.
First, while Ethereum uses the Proof-of-Work consensus algorithm, Cardano uses Proof-of-Stake. The former is an energy-intensive and costly process for miners while the latter is more energy-efficient and allows for higher transaction speeds.
Another difference between the two is that Cardano uses a more widely known coding language, Haskel as opposed to Ethereum which uses the less common Solidity. Haskel allows for more precise writing of code and enhances the security and reliability of the network.
Cardano also incorporates a Proof-of-Security framework that uses mathematical processes to keep out adversaries. This is a new system not present on Ethereum network. It also has a crypto-to-fiat exchange system built into its wallet while ethereum has to use exchange platforms for conversions.
Where can you buy Cardano (ada)? What exchange can I purchase Cardano?
The Cardano token ADA can be bought on a few of the well-known exchange platforms. Binance and Bittrex have the highest level of the coin’s trading volumes. They also offer the option of trading ADA/BTC and ADA/ETH pairs on their exchanges.
This means that in order to buy ADA you first need to buy either BTC or ETH so as to make a conversion. Both ETH and BTC can easily be purchased on most exchange sites. You could choose to make the purchase from Coinbase using either a bank transfer or credit/debit card.
Coinbase is recommended for first time buyers because it is quite easy to use. If you choose to buy using a credit/debit card, you will pay a higher fee but get the currency immediately. The next step is to execute the exchange and get your ADA.
Where can you store Cardano? Does Cardano have a wallet?
At the moment, there is only one wallet that supports ADA, the Daedelus wallet created by Cardano. Even though it is currently available only on Windows and Mac operating systems, it will soon be availed for Android and iOS as well.
Daedelus is a multi-platform digital wallet through which users can send and receive tokens and also view transaction details.
Fortunately for its users, the platform’s native wallet has an eight-person developer team working on it. This means that it will not take too long before the new platforms are incorporated.
Ledger, a popular hardware wallet is also working on integrating ADA. The company is currently working with a third-party provider to incorporate support for the token into their range of products. It has however not given a completion date for this project.
Can Cardano be mined? How to mine Cardano (ada)?
Cardano is mined using its distinct Proof-of-Stake mining consensus algorithm known as Ouroboros. This algorithm does not use up as much energy as the existing models in the cryptocurrency industry. This makes the Cardano blockchain highly scalable.
The method was proposed by IOHK chief scientist, Prof. Agelos Kiayias. It is the first one ever whose security has been proven mathematically. It has also undergone peer review, another first, and has not been compromised to date.
The method allows anyone who has an ADA token to become a slot leader. Slot leaders on this network are the equivalent of miners on PoW systems. They create new blocks and validate transactions.
An algorithm known as Follow the Satoshi selects coins randomly and if a coin in your possession happens to be selected, you become a slot leader. Once this happens, all you need to do is keep your wallet open and your node will automatically do the rest and earn you tokens.
How is Cardano different from other cryptocurrencies?
One of the major differences between Cardano and most other cryptocurrencies is the fact that it is more versatile to regulations. It tries to strike a balance between the concepts of privacy and decentralization on one hand, and regulations on the other. According to its team, complete anonymity can become counterproductive in the long run.
The model also shuns the crowd-based governance structure that controls most other cryptocurrencies. This is because of the problems that have arisen from democratic systems like on Bitcoin and Ethereum networks. Disagreements on how to upgrade and the general direction of the codebase often lead to unresolved situations and keep the networks from expanding.
The Cardano model has in place an airtight oversight structure that makes provisions for binding decision albeit democratically. It also has a voting process that will ensure all arguments are resolved by its community of token holders.