Cardano (ADA) is considered a third-generation blockchain, following in the footsteps of Bitcoin and Ethereum. Cardano aims to compete directly with Ethereum, a decentralized application (DApp) development platform with a multi-asset ledger and verifiable smart contracts.
The price of Cardano has risen by 0.36% in the past week. A single ADA currently trades at $0.5016 with a current circulating supply of 33.9 billion ADAs, according to coinbase.
In September 2021 it reached its all-time high of $3.10. To buy ADA, you can sign up for an account with one of the major cryptocurrency exchanges such as Binance, Coinbase, Gemini and Kraken, and then you can store ADA either on the platform itself or in a crypto wallet.
Cardano’s Business Model
Cardano is built on a Proof-of-Stake consensus through its native token Ada that validates transactions without requiring high energy costs. It achieves this by eliminating the massive computing resources that the algorithm uses.
Charles Hoskinson, who is also the co-founder of Ethereum, began the development of Cardano in 2015 and launched the platform in 2017.
Cardano’s blockchain is divided into two separate layers: the Cardano Settlement Layer (CSL) and the Cardano Computing Layer (CCL). The CSL contains the ledger of accounts and balances where transactions are validated while the CCL layer is where all the computations for apps running on the blockchain are executed through smart contracts.
Unlike other cryptocurrencies that are developed to be peer-to-peer payment systems, Cardano is an ecosystem that allows other developers to create tokens, decentralized applications, send and receive payments, or create other use cases for scalable blockchain networks.
With it, users can install compatible wallet software on their computers or devices, to start staking their ADA, and to start earning rewards as network validators.
Is Cardano a good investment?
Over the years Cardano has seen tremendous growth and is currently the eighth largest cryptocurrency by market cap with a market capitalization of $16.9 billion.
Due to its real-world use cases and robust peer-reviewed process, Cardano’s ecosystem is touted by some experts as one of the more future-proof cryptocurrency ecosystems, with potential for industry adoption outside the cryptocurrency industry.
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One of the reasons that make Cardano attractive is that it provides long-term scalability and quick transactions. Compared to its rival Ethereum which offers 15 transactions per second (TPS), Cardano can process up to 250.
Its native token ADA has performed well as well providing users with huge returns, as it is up over 2,300% since its 2017 release. Cardano is designed to be developed in ‘eras’ named after notable figures in poetry and computer science history.
It is currently in the Basho stage of scaling and optimization, intended to bring more capabilities to Cardano.
Last month Cardano announced that it is undertaking its Vasil upgrade which is driven towards bringing increased functionality, performance, scalability, and interoperability to Cardano through new features and improvements
In addition to being a Peer-reviewed network, Cardano works closely with academics to generate peer-reviewed research to guide blockchain development and enhancements. The open-source nature of this peer-reviewed blockchain helps it to continually evolve to meet the demands of the market.
Given the volatility and high-risk nature of cryptocurrency markets, it is important that investors do their own research on the particular cryptocurrency to determine if it is a good fit for their investment portfolio.
Whether Cardano or any other crypto is a suitable asset for you to trade will depend on your risk tolerance and how much you intend to invest. Most importantly remember to never invest money that you cannot afford to lose.
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How to Mine Cardano
Users cannot mine Cardano but can earn rewards through staking. Staking is the process of participating in the validation of transactions on Cardano’s Proof-of-Stake blockchain in exchange for staking rewards.
Proof-of-Stake protocols unlike Proof-of-Work employ significantly less energy. This reduces the energy and waste footprints by not requiring large amounts of electricity to power computers specifically designed for mining making them attractive among investors.
Ada is given as a reward for work done for the blockchain by users participating in a stake pool. Cardano has no slashing penalties, which means delegators have complete control over their ADA. There are several staking pools you can choose from to stake your ADA.
1Acquire Cardano (ADA): Purchase ADA from a reputable exchange.
2Choose a Wallet: Select a wallet that supports Cardano staking, like Daedalus or Yoroi.
3Transfer ADA to Wallet: Move your ADA from the exchange to your selected wallet.
4Delegate to a Stake Pool: From your wallet, delegate your ADA to a reputable stake pool. This allows the pool to represent your ADA in the consensus process.
5Earn Rewards: Over time, as the stake pool produces blocks, you’ll earn rewards based on the amount of ADA you’ve staked.
6Re-stake or Withdraw: You can choose to compound your earnings by re-staking them or you can withdraw your rewards.
Cardano: Key Takeaways
Cardano (ADA) is a third-generation blockchain, designed to rival Ethereum.
The price of ADA peaked at an all-time high of $3.10 in September 2021.
Cardano operates on a Proof-of-Stake consensus, focusing on energy efficiency.
Cardano can process up to 250 transactions per second, surpassing Ethereum’s 15.
Instead of mining, users can earn ADA rewards through staking on Cardano’s network.
Cardano (ADA) is considered a third-generation blockchain, following in the footsteps of Bitcoin and Ethereum.Read MoreSmall Business Finance, CryptocurrencySmall Business Trends