What is Cardano (ADA)? What problems do they solve? Is ADA a worthwhile investment?… All your questions around ADA will be answered by Blogtienao in this article. Let's find out!
What is cardano?
Because Cardano is decentralized, transactions and smart contracts are verified by the community. They can participate by contributing computing power.
In addition, the project development team claims Cardano is the third generation of Blockchain.
Why is Blockchain Cardano Blockchain 3.0?
According to project leader Charles Hoskinson, the Cardano project is Blockchain 3.0
Blockchain 1.0 - Currency
Bitcoin's blockchain is the prime example of the first generation of Blockchain. This Blockchain generation allows money transfer from one person to another on a decentralized monetary system.
One major drawback of the first generation, however, is that they are only allowed to trade currencies, with no way to add conditions to those transactions.
Blockchain 2.0 - Smart Contract
In this generation of blockchain, the Ethereum platform is the most typical example thanks to the smart contract function.
Smart contracts are tools that help you trade currencies, stocks or anything of value transparently, while avoiding third-party services.
However, this generation also has some problems. The highlight of which is the bad scalability.
There is a small note here that the Ethereum platform is advancing to Blockchain 3.0 thanks to the project developing Ethereum 2.0
Blockchain 3.0 - Cardano
According to the vision of the Cardano development team, the current Blockchain technology needs to be developed to a new level.
Therefore, the team focused on improving the disadvantages and adding what the previous two generations lacked: scalability, interoperability and sustainability.
The project focuses on addressing 4 key issues that blockchains are facing:
- Ability of extension
- Interactive abillity
- Process more transactions with cheap fees and high speed
How does Cardano work?
Cardano's foundation consists of two separate layers:
- Cardano Settlement Layer (CSL): This class is now fully developed and active. Settlement allows users to send and receive Cardano coins from one wallet to another. This is similar to how users can transfer ETH directly to each other
- Cardano Computation Layer (CCL): This class is currently under development. Once completed, it will allow users to create and sign smart contracts
Besides, Ouroboros algorithm is an important part of the infrastructure in support of the Ada cryptocurrency. This is also a major innovation in blockchain technology.
Ouroboros algorithm is designed by a team under the leadership of Professor Aggelos Kiayias. He is the chief scientist of IOHK.
He said that although there are already blockchains built on the Proof of Stake protocol, no one provided a truly random way to choose a validator. That is why the team built the Ouroboros algorithm.
Algorithm eliminates the need for "energy thirst" of Proof of Work protocol. What is the barrier to the expansion of blockchain to be used more widely.
Besides, they contribute to the confirmation of transactions faster and lower transaction fees.
The level of security shown by the Ouroboros algorithm is also very good, because they have not yet been compromised.
This video is produced by IOHK, explaining how Ouroboros algorithm works:
How is Cardano different from Ethereum?
In particular, Cardano's architecture, thanks to two separate layers, Cardano's blockchain is superior to the Ethereum blockchain because they allow for an easier upgrade and increase flexibility.
Transaction speed of Blockchain Cardano
In older blockchains like Bitcoin or Ethereum, the number of transactions processed is very limited. As Bitcoin Blockchain handles only 7 transactions per second and Ethereum is 20 transactions. Meanwhile Visa processed an average of 1,667 transactions per second.
No global payment system can exist if it can only process a few transactions per second. Therefore, the Cardano team set a goal of tens of thousands of transactions per second for the platform to work perfectly as a payment system.
In fact, in a test at the end of 2017, Cardano blockchain processed 257 transactions per second.
The project was developed with three fairly different organizations, namely:
- Cardano Foundation: An independent agency based in Switzerland. The agency is responsible for supporting the Cardano user community, working with authorities on legal and commercial issues.
- IOHK (Input Output Hong Kong): The blockchain technology company was founded in 2015. Headed by CEO Charles Hoskinson. The company undertakes the task of holding the contract to develop the platform until 2020.
- Emurg: Cardano's business partner. The mission is to support investment capital for new businesses and support commercial projects built on Cardano Blockchain.
The platform will go through 5 development roadmap:
- Byron: This is the organization phase. During this period, the Cardano community was built and developed, users were allowed to trade cryptocurrencies, thousands of GitHub codes were committed, etc.
- Shelley: This is the stage of decentralization, the period of network growth and development. In this phase, the platform will launch a reward system, incentives, staking programs
- Goguen: This is the Smart Contract integration phase, which will be conducted in parallel with the Shelley phase. When Goguen is completed, it will allow users from technical and non-technical platforms to create and execute smart contracts on the Cardano network.
- Basho: This is the period of optimization, improving the scalability and interoperability of the network. During this period, the sidechain was launched and could interact with the Cardano main chain, with great potential to expand the network's capabilities.
- Voltaire: This is the stage to provide the final pieces needed for the Cardano network to become a self-operating system. In this phase will introduce the issue of voting and the budget system.
Summary of copper ADA
ADA is the electronic currency of Cardano platform. Copper has the smallest unit of lovelace (1 ADA = 105 lovelace).
Exchange rate ADA
You can track the fluctuations of the current exchange rate of ADA Coin at Blogtienao always!
Watch now: ADA price
Can you mine ADA copper?
You cannot dig ADA like Bitcoin, because the platform does not work on the Proof of Work consensus mechanism. But you can stake to Cardano to cast them.
Pros - disadvantages of the project
- Great development team. The founder has been a member of a variety of successful projects in the past. For example, BitShares and Ethereum
- The first blockchain to use multiple layers (Cardano Settlement Layer and Cardano Computation Layer)
- Unlimited replication: When multiple people use the blockchain, multiple transactions can be processed
- The ADA coin offers fast and cheap deals
- Cardano's consensus mechanism is more environmentally friendly than older blockchains, as well as more fair
- Many claims are still theoretical, as blockchain is still under development
- Other blockchains, such as Ripple, Stellar Lumens , and NEO was able to process more than 1.000 transactions per second
- The maximum scalability at the moment is only 257 transactions per second
Should we invest in ADA?
ADA is not only a cryptocurrency, it is also a platform that helps run financial applications being used by individuals and organizations around the world.
The layers in this platform are still under construction. Once completed, they will provide the flexibility to allow the upgrade to a soft fork.
Cardano also operates decentralized applications and services not controlled by any third party.
This is the first blockchain project designed by a global team of engineers and can be added on systems in a number of important industries such as aerospace and banking.
In addition, this coin is currently ranked 11th on CoinMarketCap (calculated by market capitalization).
For these reasons, this is probably the type of asset worth considering investment.
However, any investment decision will always have both opportunities and risks. Therefore, you need to spend time researching carefully before making investment decisions.
Where to buy, sell and trade ADA?
Currently, ADA has been listed on many major exchanges such as Binance, Huobi, Bittrex, ... So you can easily on any exchange you like.
Besides, you can easily trade ADA in Vietnamese Dong on Vicuta. This is Blogtienao's main floor, so you feel secure.
Blogtienao has a separate article very detailed about this item, you can refer to the link below:
So we have brought you all the necessary information about Cardano. Hopefully the article has answered your questions about the project. Wish you a successful investment!