Cardano Cryptocurrency Review (ADA)
The Cardano blockchain ecosystem is an effective technology platform for launching financial applications. The internal token of the cardano system is the ADA cryptocurrency operating in the Cardano Settlement Layer (CSL). CSL is the first layer in a distributed registry; here, transactions between crypto-wallets are processed. To support decentralized applications, the Cardano Computation Layer (CCL) layer has been created.
A two-tier structure simplifies network protocol updates. Cardano developers have used the new secure programming language Haskell. As a consensus algorithm, the Cardano cryptocurrency network (ADA) uses the upgraded Proof-of-Stake Ouroboros, created by Professor Aggelos Kiais. The creators call Cardano a new generation cryptocurrency, designed to expand the field of application of digital coins and smart contracts in the global finance industry.
Project Development History
In 2014, one of the Ethereum team programmers, Charles Hoskins, left the project and, together with his partner Jeremy Wood, founded IOHK. Thus began the story of the creation of the Cardano platform.
Japanese investors became interested in the idea of using blockchain technology for smart contracts and signed a contract with Charles Hoskins to develop a new cryptocurrency with high scalability.
The ICO company lasted for two whole years from 2015 to 2017, and as a result, the project team managed to raise a pretty good amount of $ 62,000,000. Just a week after the launch, Cardano’s market capitalization increased to $ 500,000,000, and ADA’s daily turnover on trading floors reached $ 100,000,000, the blockchain community was so interested in the new coin.
The largest investment amounts came from countries in Southeast Asia. Cryptocurrency ADA is now popular in Japan, South Korea and Thailand.
Three organizations contribute to the development of the Cardano project:
- The Cardano Foundation is a supervisory and educational body. He answers:
- For standardization, protection and observance of the Cardano protocol;
- Relations with the public, government agencies and financial regulators;
- Strategic partnership with other crypto projects.
2. Input Output HK (IOHK) develops and services the Cardano ecosystem.
3. Emurgo is a commercial organization financing and supporting innovative applications running on the Cardano blockchain.
Subjects are completely divided by ownership and leadership.
The development team includes
- Charles Hoskinson – an American programmer who participated in the development of projects Invictus Innovations and Ethereum;
- Jeremy Wood – a mathematician and businessman, graduated from the University of Indiana (USA), worked with Charles Hoskinson in the team of Vitalik Buterin;
- Agelos Kiyayas is a professor at the University of Edinburgh. Specialist in the field of applied cryptography and computer security;
- Philip Wadler is a developer of programming languages. Some of the authors of Haskell, Java, and XQuery;
- Elias Kutsupias is a professor at Oxford University. Specialist in the development and analysis of computer algorithms.
Developers call Cardano a third-generation Blockchain project. The first generation includes the BTC cryptocurrency and its forks, and the second generation includes Ethereum. The task of the Cardano ecosystem is to preserve and develop the positive aspects of previous blockchain ecosystems, getting rid of their inherent disadvantages. First of all, the problems of scaling and energy consumption should be solved.
The crypto mining industry consumes 1% of all electricity generated in the world and the power of leading blockchain networks is constantly growing. The high complexity of mining leads to a technological race of manufacturers of computing equipment and an increase in the cost of mining machines. Their purchase and content are not available to all users.
Full verification by the nodes of the blockchain network during the generation of a new block slows down transactions. Therefore, the speed of transferring funds between wallets in cryptosystems of the first and second generation is lower than in Visa or Mastercard payment networks. Serious inconvenience arose during the cryptocurrency boom, when a huge number of users made transactions.
The amount of information in the blockchain is growing, which puts forward additional requirements for data storage and processing. The high degree of anonymity complicates the use of virtual coins in the traditional financial system, which is under the strict control of regulators.
Cardano’s blockchain engineers solve this problem optionally, including metadata protected by a cryptographic method in the system, which will allow interacting with external regulators, while maintaining a sufficient degree of confidentiality of token holders.
The creators of Cardano offer various blockchain networks interaction directly without intermediaries, within the framework of their platform, which in the future may eliminate crypto-exchanges.
The IOHK team plans to perfect the execution of smart contracts and send accountants and lawyers to the labor exchange.
Features of the Cardano blockchain
The Cardano project provides for the gradual modernization of the protocol throughout the life of the ecosystem. For this, a special mechanism is being developed to achieve agreement between all members of the community. The developers strive to prevent the hard forks of the ADA cryptocurrency, which could not be done without any of the popular crypto networks. Cardano software has an internal hierarchical distribution in the form of a protocol stack.
The Haskel programming language in which Cardano is written is one of the most advanced and secure. The enhanced Proof of Stake Ouroboros protocol provides for the voting of all ADA coin holders. It is similar in some respects to the new Casper ethereum protocol, but according to the creators of Ouroboros, it is the only consensus algorithm whose safety can be proved using mathematics. There are other promising ideas and undertakings in the project roadmap. You can familiarize yourself with Roadmap at https://www.cardano.org/en/home/.
Consider the Cardano cryptocurrency mining system. Mining on the POS algorithm is based on the use of a wallet with coins instead of computing equipment. Of course, you still can’t do without a computer, you need to install the program, download the blockchain chain, buy ADA coins on one of the exchanges, and then take part in the generation of cryptoblocks. Consensus is reached through a general vote by the Cardano digital asset holders who choose the slot leaders taking into account the share in the blockchain of everyone who has a Cardano wallet.
These trusted nodes process transactions and sign blocks. By and large, cardano mining differs from Casper only in some technical details.
Where and how to buy Cardano cryptocurrency
Cardano digital coins can be bought for American dollars on the trading floors:
- Binance US;
Operations with fiat money on cryptocurrency exchanges are possible only after complete verification of the identity. There are many trading platforms on which you can exchange ADA cryptocurrency for bitcoin, ethereum or stablecoins (USDT, USDC, PAXX).
On the Kraken exchange, you can buy Cardano coins for the Euro currency, and on Upbit and Bithumb for the South Korean won. For detailed instructions on how to register and go through the identity verification procedure on the exchange, read the reviews of the Binance, EXMO, Bittrex trading floors on our website.
To work on the Cardano network you must download Daedalus. Versions for Windows, macOS and Linux are available. Daedalus is a secure deterministic ADA cryptocurrency wallet. Install the application on your computer, synchronize with the blockchain, and you can send and receive ADA coins, as well as view transaction history. For more information, there is Cardano Block Explorer, information about the state of the blockchain, for example, about its slots and eras, is available in it. In addition to performing transactions, Daedalus wallet has special features that simplify the use and increase the security of storage of your assets. These include:
- Encrypted keys;
- Passwords for expenses.
You can print the private key on paper, ensuring maximum security of funds. Cardano blockchain engineers plan to add support for Ethereum Classic and Bitcoin to the Daedalus wallet.
Advantages and disadvantages
Advantages of the project:
- Experienced management team;
- Thoroughly prepared theoretical base;
- Good financial support;
- Interesting and promising ideas.
- Too long terms of project development for the scale of IT;
- Late blockchain launch.
The team should oust seriously strengthened competitors from the market and until they succeed. After the recession in the spring of 2018, the cardano rate is stably low, the network takes only 14th place in the Coinmarketcap rating.
Cardano’s further development plans
IOHK is working to increase the speed of transaction processing and expand the capabilities of the platform. If, prior to the expiration of the contract with IOHK, Cardano does not become a sustainable ecosystem, the project is unlikely to be able to function without the professional services of blockchain architects. That’s just whether investors agree to bear the additional costs.
Cardano cryptocurrency is not so innovative. Competitors have similar achievements, and the philosophical ideas of theorists do not always meet the real requirements of users. Having demonstrated high rates in the first year of its existence, the project was somewhat lost among its analogues and there can be no talk of superiority over Ethereum and Bitcoin. Cardano blockchain is rarely used in practice.
The only successful project is the creation of a distributed register of higher education diplomas in Greece. Of course, it is still too early to draw final conclusions; the fate of the project largely depends on the general state of the crypto industry.