Cardano is a proof-of-stake (PoS) blockchain platform. It can be used for peer-to-peer transactions with its native cryptocurrency, ADA.
How Does ADA Work?
ADA is built on blockchain technology, a distributed public ledger (a digital record of transactions) enforced by a distributed network of computers. All transactions occur independently on the blockchain network. The tasks to manage and maintain ADA occur across the distributed network of computers. Because of this, there is no need for the authority of a central bank.
What is Cardano (ADA) used for?
1. Decentralized Applications: Cardano’s platform is designed to host decentralized applications (dApps) and smart contracts, enabling developers to build and deploy decentralized solutions for a variety of use cases.
2. Digital Identity: Cardano is developing a digital identity solution that will allow users to securely and privately manage their personal information, enabling a more secure and privacy-focused web.
3. Financial Inclusion: Cardano aims to provide financial services to individuals who are currently excluded from the traditional financial system, making it accessible to people in developing countries.
4. Stablecoins: Cardano’s platform is designed to host stablecoins, which are cryptocurrencies designed to maintain a stable value relative to a fiat currency or a basket of goods. This can provide a more stable store of value compared to traditional cryptocurrencies.
5. Supply Chain Management: Cardano’s blockchain can be used to improve supply chain transparency and efficiency, by tracking goods and services from production to delivery, and ensuring that only ethically sourced goods are used.
History of Cardano (ADA)
ADA was founded by in 2017 by Ethereum co-founder Charles Hoskinson and Jeremy Wood. It was released at an ICO of $0.0024. Hoskinson left Ethereum after a dispute with another co-founder, Vitalik Buterin, as he wanted to accept venture capital and create a company while Buterin wanted it to remain a non-profit organization. In 2015, Hoskinson began the development of Cardano alongside Jeremy Wood.
Pros and Cons of Cardano (ADA)
Decentralized: In the traditional banking system, a bank can decide to freeze your account and seize your assets at any moment. Your identity is also tied to any transaction you make with your bank card. As long as you hold your crypto on a decentralized exchange (DEX) or hardware wallet, it cannot be seized because it is in your custody.
No middleman: Cardano eliminates the need for middlemen by using decentralized, peer-to-peer networks to facilitate transactions. These networks use distributed nodes to verify transactions, without the need for a central authority or intermediary.
Faster, cheaper transactions: Thanks to their blockchain technology, cryptocurrencies such as Cardano enables users to make local and global money transfers much quicker than using a bank. Transferring Cardano is also a lot cheaper than bank transfers.
Opportunities for big gains from investments: The crypto market cap (total value) has skyrocketed over the past decade, with its quickest growth in 2021 when it reached $3 trillion. Many crypto stocks are priced below $1 when they are first released and have the potential to increase to hundreds or thousands of dollars like Bitcoin or Ethereum. Cardano had an initial coin offering (ICO) price of $0.0024.
Not completely anonymous: A big claim of cryptocurrency is that it is anonymous, so transactions cannot be traced back to your identity. Unfortunately, this is not accurate. Crypto is actually pseudonymous. Your crypto transactions are documented on a public ledger, so it is possible for anyone to trace the trail of the transactions back to you.
Prone to hackers: Because of the earning potential that comes from holding coins like Cardano, crypto wallets and exchanges are often targeted by cybercriminals who want a piece of the pie.
Volatility: It’s very easy to suffer financial losses with cryptocurrency because they do not have a stable price. For example, you could buy a crypto coin at $19 one day only for the price to drop to $10 the next day.
Lack of user protection: Cardano transactions are irreversible, so there is no way to reverse or cancel a transaction once it has been completed.
Where To Buy Cardano (ADA)
You can trade Cardano on major crypto exchange platforms. You can buy, sell or use the token for trading on centralized and decentralized exchanges.
Before buying cryptocurrency, it is important for users to know the risks involved. Because centralized exchanges hold your private keys, you are at risk of losing access to your assets if there is a hack. Holding your cryptocurrency in your own hardware crypto wallet is recommended, but you put yourself at risk of losing your assets forever if you lose your private key or are targeted by hackers unknowingly. In any case, it’s important to do your research before investing in any crypto project; this article is for guidance only and should not be seen as investment advice.
Current supply: 34,585,646,881 ADA
Max supply: 45,000,000 ADA
Cardano Developer Engagement
Cardano has one of the most active GitHub repositories in cryptocurrency. It has an FCAS score of 950. The development efforts are all open source and are led by an agency called Input Output Hong Kong.
ADA Network Speed
Transaction Time: 10 minutes
The disbursement of ADA is well documented thanks to the Cardanoscan tool. Despite this, the disbursement does bring up concerns as the supply is not well distributed. 37% of the total supply is held by the top 1000 addresses while 68% is held by the top 10000 addresses.