At the time being, Cardano is one of the largest cryptocurrencies by market capitalization, but did it always be like that? Cardano is one of the direct Ethereum competitors, providing a list of upsides over cryptocurrency players, too. Given its price history and trading volume, Cardano is undoubtedly a game changer perceived as an eventual long-term investment. Among the many advantages of the platform is its openness to all kinds of transactions and, perhaps the most meaningful one, the “Internet of Blockchains” approach, which aims to develop a seamlessly interchangeable ecosystem. Without further ado, let’s explore this legendary-to-be digital currency’s peculiarities and see if it has the potential to change something in the industry

What is Cardano?

Cardano is a not-so-new-in-town cryptocurrency that has rapidly seen huge success, remaining under the radar of investors ever since its introduction in September 2017. But what makes Cardano such a valuable digital currency? Well, maybe its sustainable and balanced ecosystem. Cardano is a PoS (Proof-of-Stake) blockchain project, meaning that its focus is generally on greener energy consumption. Its founder, Charles Hoskinson, also the co-founder of Ethereum, applied research-driven research and scientific philosophy when he created Cardano, as the cryptocurrency’s official website also specifies. Or, in simpler terms, Cardano presumed to address the frequent scalability problems plaguing most “second-generation” blockchains, including Ethereum and its constantly growing gas fees. Cardano’s open-source blockchain is currently experiencing a rigorous peer-review process by programmers in academia and scientists alike for further improvement and development. The network meant to become a “third-generation” blockchain – Crypto 3.0. – with the general purpose of doing better than its first-line competitor Ethereum. If you’re asking yourself why a co-founder of the world-second largest digital currency is currently preoccupied with developing a way more improved network like Cardano, we tell you why – Charles Hoskinson had some time a dispute with Vitalik Buterin, the other co-founder of Ethereum, on the commercial status of the network. Numerous academic institutions, including Lancaster University and IOHK research institute, support Cardano’s ongoing evolution. So, it seems that Cardano intended to become something big; and we’re only curious about what the future holds for this cryptocurrency.

What is the market for Cardano?

You may have heard the expression “Japanese Ethereum” associated with Cardano, so what does it mean? Well, that’s because Cardano has been introduced in Japan through debit cards and ATMs (automated teller machines). And although its current status is just as a mere cryptocurrency, it has great determination for the future. It aims to act as a trusted computation framework, i.e., shift from the settlement layer to a Control later. This will include advanced systems, such as gaming and gambling systems, as well as credit and identity management systems. Whether ADA is going to be part of this big change is still unclear; but there’s a high probability of being so.

What is ADA?

ADA is Cardano’s native coin. Its name is taken from Ada Lovelace, a renowned mathematician considered to be the first computer programmer. For now, ADA coins used to pay transaction charges for using the Cardano platform (just as ETH, the cryptocurrency for Ethereum). Validators also receive ADA tokens as compensation for running the PoS system. As regards the ADA supply, it’s estimated that there will only ever be 45 billion tokens. At this very moment, the circulation supply of ADA coins is about 31 billion; of which 2.5 billion was given to IOHK once the platform was released and 2.1 billion to EMURGO; a global blockchain advancement company, for their contribution to the early basis of the Cardano protocol. Plus, the Cardano Foundation received 648 million tokens for a push for the adoption and promotion of the platform. IOHK also organized rounds of public sales between 2015 and 2017, making it possible for users to get ADA coins. So, it seems that a significant amount of the circulation supply was allocated to foundations, which is quite interesting. Anyway, considerable supply is still on the horizon; so if you’re eager to invest, you undoubtedly have lots of ADA tokens at your disposal. Nonetheless, before making any move, you’re recommended to scrutinize the cryptocurrency price, maybe compare it with the current Bitcoin price, and pay special attention to its trading volume.

What makes Cardano so unique?

One of the things that makes Cardano a game changer in the industry is that; unlike other projects, it has always run a full-fledged PoS system. This consensus mechanism guarantees the sustainable character of the Cardano network, ensuring people that the amount of electricity consumed to carry out transactions significantly lower than in the case of PoW-based blockchains. Plus, ADA claims to be the first third-generation digital currency; having the purpose of expanding beyond the idea of virtual coins and smart contracts (characteristic of second-generation cryptocurrencies). More precisely, Cardano aims to address issues of interoperability, scalability, and eco-friendless on cryptocurrency platforms. Cardano’s algorithm Ouroboros, for example, designed to permit faster transaction processing and save on electricity costs. Another thing that makes Cardano stand out is its layered architecture. In order to scale its network, Cardano makes use of CSL (Cardano Settlement Layer) and CCL (Cardano Computational Layer); intended, on the one hand, to carry on all the transactions on the chain; and, on the other hand, to deploy smart contracts. These layers can communicate and interact faultlessly but also function separately, taking cross-chain transaction processing to the next level.

Advantages of Cardano

Are you not convinced yet about the promising character of Cardano? Here are even more upsides as regards this cryptocurrency, listed today as one of the largest by market cap globally.

• A higher degree of decentralization, thanks to the Ouroboros algorithm, enables everyone to become a node validator.
• Passive income. Cardano makes it possible for users to stake their ADA tokens and, thus, gain passive income. What does this procedure mean? Well, simply buying ADA coins and holding them in an adequate wallet.
• Fast transactions. With more than 250 transactions per second, Cardano is to become one of the most scalable networks.