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What is Cardano

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What is Cardano (ADA)

Cardano is a dark horse for many crypto investors. Few people use this coin, and not everyone knows what it is used for. Even if you are an advanced user, you have probably never used the blockchain for your needs. Nevertheless, ADA has been in the TOP-10 coins by capitalization for more than five years in a row. So, what is so interesting about this coin? Let's figure it out.

What is ADA

What is Cardano (ADA)? It is a decentralized, open-source, Proof-of-Stake blockchain platform and cryptocurrency project that was founded by Charles Hoskinson, one of the co-founders of Ethereum. Cardano aims to provide a more secure, scalable, and sustainable infrastructure for the development of decentralized applications (dApps) and smart contracts.

Cardano is unique because it uses a research-driven approach and relies on peer-reviewed academic research to build its platform. Its blockchain is built using the Haskell programming language, which is known for its strong security features.

The project aims to be an all-in-one platform supporting financial applications, identity management, supply chain tracking, and more. Its focus on sustainability, scalability, and security makes it an attractive choice for developers and users who are looking for a blockchain platform to build their complicated projects on.

Cardano’s official website.

How does Cardano work

What is Cardano crypto algorithm? Cardano is a Proof-of-Stake (PoS) blockchain platform emphasizing security, scalability, and sustainability. It uses a unique consensus algorithm called Ouroboros, a peer-reviewed PoS protocol.

Cardano has a layered architecture, which separates the settlement layer (Cardano Settlement Layer, or CSL) from the computational layer (Cardano Computation Layer, or CCL). The CSL handles transactions of ADA tokens, while the CCL is responsible for smart contracts and dApps.

Cardano's Ouroboros consensus algorithm is a key differentiator. In Ouroboros, time is divided into epochs, which are further divided into slots. Slot leaders are elected from ADA stakeholders who have staked their tokens. Leaders are responsible for validating transactions and creating new blocks. The more ADA a user stakes, the higher the chance they have to be elected as a slot leader.

Another tech feature is that smart contracts are written in Haskell, a functional programming language known for its strong security features. Haskell allows for formal verification, a mathematical approach to prove the correctness of code. This ensures that smart contracts and dApps built on Cardano have a higher level of security and are less prone to errors or exploits. That is, even by blockchain standards, Cardano provides very high security.

What is Cardano’s purpose? The project is focused on achieving interoperability with other blockchains and legacy financial systems. It aims to create a seamless ecosystem where users can easily move assets between different blockchains and traditional financial networks. This is done through sidechains and other cross-chain communication protocols.

Besides all mentioned above, Cardano is working on improving its scalability through several initiatives, such as Hydra, a Layer-2 scaling solution that uses state channels for faster and more efficient transactions. That’s right. We are used to thinking that second layers are developed by side teams, not related to the mainnet developers, but Cardano is developing its own Layer-2 itself.

The history of Cardano: from Byron to Voltaire

Cardano's development can be traced back to 2015 when Charles Hoskinson, one of the co-founders of Ethereum, partnered with Jeremy Wood to establish a blockchain research and development company called Input Output Hong Kong (IOHK). They aimed to create a next-generation blockchain platform that would address existing platforms' limitations, focusing on security, scalability, and sustainability.

Cardano’s roadmap has been divided into several phases, each named after a famous historical figure.

  1. Byron (Foundation). Launched in September 2017, the Byron phase focused on the establishment of the Cardano blockchain and the release of its native cryptocurrency, ADA.
  2. Shelley (Decentralization). Launched in July 2020, the Shelley phase marked a significant milestone in Cardano's development by transitioning from a federated model to a decentralized, community-driven network.
  3. Goguen (Smart Contracts). The Goguen phase brought smart contract capabilities, enabling developers to build decentralized applications (dApps) and create custom tokens on the platform.
  4. Basho (Scaling). The upcoming Basho phase aims to improve the scalability and performance of the Cardano network. One of the key components of this phase is Hydra.
  5. Voltaire (Governance). The final phase, Voltaire, is focusing on establishing a self-sustainable, decentralized governance model.

By the way, these stages sometimes overlap each other, that is, a new stage can begin before the completion of the previous one. For example, at the beginning of 2019, the team was working on all five stages simultaneously.

How to use Cardano

So, what is Cardano’s (ADA) usage cases? The native cryptocurrency of the Cardano platform is called ADA, which is used for various purposes within the network, such as:

  • Staking: ADA holders can participate in the Proof-of-Stake consensus mechanism by staking their coins to help validate transactions and secure the network. In return, they earn rewards in the form of additional ADA.
  • Transactions: the native coin of the blockchain is used to pay for transaction fees on the network, ensuring that the system remains sustainable.
  • Governance: the token holders can participate in the governance of the Cardano ecosystem through voting on proposals related to the development and improvement of the platform.
  • Trading: after all, you can just trade ADA to make some money.

Anyway, you need some tokens to get access. So, here is the question. Where and how to buy it? You will find the answer below.

How and where to Buy Cardano

Cardano is a popular but not ordinary asset as it has its own blockchain. What options do we have to buy it?

Сentralized exchange? Yes, this way is simple and easy, but not completely safe. Given the wave of centralized platform scams in 2022 and the claims of regulators in 2023, it becomes dangerous to trust CEX assets. If an exchange crashes, you may never get your funds back.

What about DEX? This is a good choice. But unfortunately, only a few decentralized exchanges support the Cardano blockchain, but small platforms like SundeSwap or Minswap can be used. But it can still be difficult to buy ADA, for example, for USDT.

So, what is the easiest way to buy ADA on a decentralized exchange? You can buy WADA (wrapped ADA) — a copy of the coin on the Ethereum network. You can do this on most DEXs, including WhiteSwap, and this would be an easy and at the same time safe option.

Trade ADA and other crypto assets on WhiteSwap!

Pros of Cardano

  • Research-driven approach. Cardano ensures that its technology is built on a solid foundation with a focus on security, scalability, and sustainability.
  • Layered architecture: Cardano's separation of the settlement layer (CSL) and the computational layer (CCL) allows for improved flexibility.
  • Formal verification. The use of Haskell for smart contract development enables formal verification, ensuring a high level of security.
  • Decentralized governance. Cardano aims for a decentralized governance model.
  • Interoperability. The project focuses on achieving interoperability with other blockchains and legacy financial systems.

Cons of Cardano

  • Complexity. The use of Haskell for smart contract development can make it more complex compared to other platforms. On the contrary, most blockchains (including Ethereum) use Solidity. If we compare Cardano vs Ethereum, the second one is much easier to interact with.
  • Adoption and competition. Although Cardano has made strides in development, it still lags in terms of adoption and network effects compared to more established platforms like Ethereum.
  • Unproven at scale. While Cardano has designed its platform with scalability in mind, it remains to be seen how well it can handle large-scale, real-world use cases. We haven’t seen this yet.

What is Cardano price prediction

As of this writing, in April 2023, Cardano (ADA) is worth $0.44. According to the open Coinmarketcap forecast, Cardano price will fall to $0.38 (-12.5%) by the end of May 2023. However, you should not completely rely on this forecast, because any person or even a hamster can set his own forecast.

There are no WhiteSwap predictions. Nobody knows what is going on with Cardano and what is Cardano's future. After all, who wants to take responsibility for such an unpredictable market?

What is Cardano's all-time high

ADA’s all-time high as for April 2023 is $2.96 (September 4, 2021).

In general, historically, the ADA rate partially correlates with the BTC rate and the crypto market as a whole. Therefore, continue to follow the dynamics to draw your own research.

Is it worth it to buy a Cardano

Cardano has a solid foundation, a research-driven approach, and ambitious goals, which could make it an interesting project for some investors. ADA is used to be in the TOP-10 largest crypto assets, but it has never been in the TOP-5. In addition, Cardano has been here for a long (more than 8 years already), so it is unlikely that it will change the game anytime soon. So, is Cardano a good investment? As for today, it looks like Cardano is a good and sustainable project, but also not “the next big thing”.

Anyway, the cryptocurrency market is highly volatile, and investing in any digital asset carries inherent risks. This should have been said.

Now you know what is Cardano (ADA). That’s all for now. Do you want to trade Cardano? Trade it on WhiteSwap — a transparent and truly decentralized exchange!

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