When crypto was still in its infancy, blockchains were vulnerable to low transaction speeds and high consumption power. Cardano came as a solution to these significant problems.
In this blog post, we’ll learn about what Cardano is, how it works, and the latest news about it.
What Is Cardano Blockchain?
Cardano is a broad-purpose blockchain project that uses the Proof of Stake (PoS) consensus algorithm. Cardano, which is referred to be a "third-generation" blockchain, is a solution to the common scalability concerns that plague the majority of "second-gen" blockchains (such as Ethereum and its ever-increasing gas prices).
Cardano was developed from the foundation to provide a decentralized, low-fee, high-TPS Proof of Stake (PoS) network solution. A strict scientific philosophy and a great deal of academic research and development have been put into this.
What Is ADA?
ADA is a digital currency. ADA can be used as a secure way of exchanging value by any user, no matter where they are located in the globe, and it does not require a third party to act as a middleman for this to happen.
Every person who possesses ada also possesses a stake in the Cardano network. ADA currently held in a wallet can either be delegated to a stake pool to participate in the profitable operation of the network and earn rewards, or it can be pledged to a stake pool to improve the pool's chances of being awarded rewards.
Currently, it’s trading at $0.3785. The total market cap is around $16.98 billion, and the total supply of ADA is 45.00 billion.
History of Cardano (ADA)
Cardano was introduced in September 2017 by Charles Hoskinson, also one of the co-founders of Ethereum. Cardano builds on top of the technology pioneered by Bitcoin (the first generation) and Ethereum (the second generation). Cardano's mission is to become a smart contract platform that is highly scalable and uses very little energy.
Features of Cardano (ADA)
Cardano is a blockchain platform that was developed with an emphasis on sustainability. It was created to address the concerns of excessive power consumption in previous blockchain solutions.
Cardano, much like Bitcoin and Ethereum, is a decentralized cryptocurrency. It is unnecessary to rely on a major third party to deliver ADA to another individual anywhere in the world.
Cardano operates using an open protocol. Anyone can contribute to the network's safety, finish transactions, or design decentralized applications kept in Cardano's blockchain.
Proof of Stake Mechanism
Proof of Stake is used to ensure the integrity of the Cardano blockchain, in contrast to Bitcoin's Proof of Work, which relies on the consumption of computational power and power to verify transactions. This solution provides security by utilizing the cryptocurrency known as ADA.
Staking is how a node in Cardano's Proof-of-Stake (PoS) system establishes its eligibility to create new blocks on the blockchain. The amount of Ada a node holds over an extended period is equal to its stake in the network.
A participant in a pool owns a stake, an interest in the pool secured by ada that has been committed. Because it is being kept as collateral for honest validation conduct, the holder of pledged Ada is prohibited from using or spending the cryptocurrency.
Reward points in the form of transaction fees are distributed to users who have pledged Ada. The quantity of Ada, a user, has staked is considered when determining how much of a reward the user will get.
Users can join staking pools and groups of Ada holders who have staked their coins and work together to update the ledger, unlock new blocks, and collect rewards. Staking pools can also be seen as virtual investment funds.
Cardano News and Update
The initial edition of the Hydra L2 solution was deployed to the mainnet on May 12, 2023. The approach is anticipated to grow Cardano (ADA), allowing it to outperform other prominent proof-of-stake (PoS) blockchains in terms of processing capacity. This will enable the Cardano blockchain to process transactions even faster.
The application is the initial launch of a series of goods scheduled to follow. Each Hydra Head functions as an off-chain "mini ledger" shared among a select set of participants. This helps transactions be completed more quickly while also reducing the fees required.
The fact that Cardano is one of the largest blockchains to successfully implement a Proof of Stake (PoS) consensus mechanism is one of the things that sets it apart from other blockchains to a certain extent. Unlike Bitcoin's Proof of Work (PoW) technology, Proof of Stake (PoS) requires far less effort and power to operate.
It has been a point of pride for the creators of Cardano to ensure that every single piece of technology produced has been put through a rigorous process of research. This means any ideas about the network can be questioned before they are officially implemented. This level of academic rigor contributes to the robustness and stability of the Cardano blockchain, guaranteeing that a significant number of potential problems of the future are discovered well before their manifestation as actual issues.
How to Buy ADA Tokens?
CoinEx is a global cryptocurrency exchange, trusted by 5+ millions of users worldwide with 100% reserve. With its 700+ tokens supported, including ADA, users can now trade easily and seamlessly.
Here’s how you can buy ADA tokens from CoinEx.
Sign up using your Google account or email. Once you sign up, you can start trading assets.
If you already have a CoinEx account, this is how you can purchase and sell ADA coins on their exchange:
- Enter your login information: To access your CoinEx account, visit the website or launch the app and enter your email and password.
- Put funds in your account to make ADA purchases. You can deposit the funds via bank transfer, credit card, etc.
- Once you have funds in your account, you may buy ADA by going to the ADA trading page and choosing the trading pair you wish to use.
- Tokens (USDT, BTC, ETH, and CET, etc.) can be exchanged for ADA. Put in your order and the quantity you want to buy.