What is – A virtual currency or more?

is an open-source blockchain project created in 2017 by Charles Hoskinson and developed in layers to run financial applications used by businesses, consumers and governments around the world. It can be used to send and receive digital money, ensuring fast and direct transfers that have been cryptographically secured. The project features a layered development that allows the team of coders and specialized engineers to maintain and update the blockchain easily using soft forks. ADA refers to the native token of the blockchain.

Like Ethereum, Cardano aims to gain the ability to run decentralized applications (dApps) in the future. Once the work on the ADA settlement layer is complete, the Cardano team will implement a single processing layer for smart contracts related to financial settlements and legal agreements. Unlike other blockchain projects, Cardano has taken a research-driven approach to solving the important problems facing consumers today.

Cardano

Why was Cardano invented?

Cardano is the only project that follows a scientific approach to develop its blockchain. Indeed, it is built by a team of expert and experienced engineers and academics. The primary goal of blockchain is to provide a scalable, secure and robust technology for running financial applications that can be reliably used by millions of consumers every day. For this reason, the project team has taken the same meticulous approach used for more traditional banking systems.

The long-term vision for blockchain and its crypto-currency aligns the challenges and requirements of users and regulators, providing a way for them to engage and interact seamlessly. This innovative style of regulatory digitization has the potential to bring financial freedom and inclusion to millions of users around the world who currently lack access to financial services for a variety of reasons. On the one hand, the underlying network will bring regulatory efficiency. On the other hand, the ADA token will ensure fast and affordable money transfer.

General information (ADA):

Name of the crypto-currency: Cardano
Acronym: ADA
Where to buy Cardano: eToro, Binance, Bitbay
Date of creation: 2017
White paper of Cardano
Website

 

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How does Cardano work and what is the technology behind it?

Cardano follows a slightly different model than other blockchains. Indeed, the Cardano blockchain has two layers, a settlement layer and a computation layer. The first layer has been developed and is now functional. It allows consumers to send and receive Cardano tokens (ADA) from one wallet to another. It uses a method similar to that employed by Ether. The second layer is under development and its goal is to allow users to initiate and sign smart contracts. Although it may seem similar to the Ethereum blockchain, Cardano has some advantages over it.

First of all, the blockchain is more adaptable, as it can be modified according to the needs of the end users. For example, countries have different financial and currency regulations. The same contract can be written in such a way that it can change the way information is stored, processed and accessed according to those regulations. And because the compute layer is separate, ADA users can still use the same currency in different countries while complying with different laws and regulations.

The compute layer also allows the Cardano project team to make changes using soft forks and without disrupting the ADA or settlement layer. To verify transactions, Cardano uses the proof-of-stake and proof-of-work protocol. Users who want to participate are called validators. They must invest a certain amount of ADA tokens to demonstrate that they have “participated” in this entire process. They are also rewarded based on their participation.

 

Is Cardano real money?

Although ADA offers low-cost and instant transactions, the smart contract layer is still under development. This means that Cardano is far from being a currency that can be used to purchase products and services on a daily basis. Moreover, it’s important to keep in mind that Cardano is not simply trying to replace another currency, but to build a comprehensive smart contract network that allows countries to ensure compliance while providing their people with affordable and convenient ways to transfer money.

That’s why it may be two to three years before the second layer is completed. Cardano’s chances are better than those of other crypto-currencies and blockchains because the project has opted for a scientific approach that involves engineers and industry experts. And even though the effort is more time-consuming, it won’t pose the same problems as other blockchains.

 

Fees and charges

The minimum transaction fees for Cardano (ADA) can be calculated using the following formula: – x + y × size.

In this equation, “x” is a single constant, which is valued at 0.155381 ADA, “y” is a particular constant whose value is 0.000043946 ADA/byte, and the size is the size of the transaction in bytes. This means that each transaction will incur a charge of at least 0.155381 ADA, as well as an additional cost of 0.000043946 ADA per byte of the transaction size.

As the project is still under development, the transaction fees are subject to change in the future. And apart from the fees on the network, you will also have to make room for commissions, fees and costs related to purchasing ADA tokens and withdrawing your funds from the various crypto exchanges and trading services.

 

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What are the advantages of Cardano?

Multi-level blockchain

Cardano has two separate blockchains for token processing and smart contracts, which means it can update the blockchain with soft forks without creating distractions for the other party.

More adaptable

Compared to other blockchains, Cardano is much more adaptable. For example, a single smart contract can be modified to fit different users, ensuring that all stakeholders follow the rules.

Decentralized

Like major crypto-currencies, Cardano’s blockchain is also decentralized, meaning that no central entity has unreasonable control over the security and validation process of transactions.

Greater financial freedom

Cardano’s vision is to combine consumer convenience and regulatory compliance in a seamless solution that will give millions of people, who lack access to traditional services, access to financial freedom.

Partnering with Regulators

Cardano is not trying to be a disruptor but an innovator. It seeks to work within the framework of regional regulations that ensure full compliance while providing convenience to the end user.

 

Can it be used anonymously?

While many people mention anonymity as one of the main features of any crypto-currency, the truth is that it has increasingly become a gimmick rather than a positive fact. Yes, crypto-currencies are relatively anonymous, but if you buy tokens on a crypto-exchange or trading platform that complies with Know Your Customer (KYC) regulations, you will be required to provide your contact information for account verification. Otherwise, you will be forced to take a risk with less reputable and unregulated services, which are generally not recommended.

Also, everything you do on the Internet leaves a digital footprint, which means you are always traceable to governments and hackers who have the technical ability to find out. If you want absolute anonymity, ADA or any other crypto-currency is not the solution you are looking for. Cash is still the best option in this regard, as there is no digital trail to follow.

 

How safe is Cardano?

Cardano is developed by a team of engineers who are experts in their field. In addition, the layers for ADA tokens and smart contracts are separate, which provides an extra cushion of security. Cryptographic encryption will ensure that the blockchain cannot be compromised and will prevent any cyber-attacks that could compromise its integrity and expose user data.

 

Who is working on the development?

Three large teams are working on the Cardano project to make it a bigger success than it is today. Compared to other crypto-currencies, Cardano is a relatively new venture, which means that few sub-projects are still in development. The three teams working on the project are:

Cardano Foundation

This is the largest team based in Switzerland, working on growing the Cardano ecosystem and token adoption. In addition, its responsibilities include developing standards and business legislation, building the global Cardano community, empowering stakeholders and facilitating long-term partnerships. This team also oversees and monitors the growth and development of the blockchain and its ecosystem.

Input-Output

The second team is an Input-Output engineering organization that works with businesses, government departments, and academic entities to build blockchains and crypto-currencies. This team provides technical support to Cardano, ensuring they are on the right track while meeting their goals.

Emurogo

This is an international blockchain technology company that provides robust solutions to governments, businesses, startups, and developers. This team was tasked with developing a full-featured crypto-currency wallet for Cardano to provide users with an excellent solution to securely store their ADA tokens.

Since Cardano is an open-source project, hundreds of developers contribute daily, improving the code base. This popularity among the developer community has allowed Cardano to grow tremendously in no time.

 

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Which financial institutions use Cardano?

Currently, there is no evidence that any financial institution or bank is financially or strategically invested in the Cardano project. Since the Cardano blockchain is still under development, regulatory compliance is not yet functional and it makes sense that currently, financial entities are holding back on whether Cardano will take the form of a regulatory solution they are seeking.

In addition, since Cardano is intended for regional regulatory compliance, it may need to engage governments at the state and national level to become viable for its intended use. This may be another reason why banks and financial institutions have not yet taken the initiative.

Cardano is a project backed by world-class engineers and industry experts who have taken a scientific approach to building a blockchain and its ecosystem. For this reason, it has great potential to attract investment in the future.

The Cardano mining process

Because the Cardano project uses the proof-of-stake protocol, ADAs cannot be mined. You must participate in the network by depositing ADA (staking) to earn rewards by validating transactions. There is no involvement of any particular ASIC or GPU and you save a lot of money that you would otherwise spend on equipment, power and cooling.

Cardano Wallets

A wallet is a hardware or software device used to store crypto-currencies like Bitcoin, Ethereum and Cardano. It implements multiple layers of security to protect your funds while reducing the risk of losing them. If you want to store your Cardano in the most secure way possible, you should consider one of the following wallets:

 

Is it worth investing ?

As mentioned above, ADA is the first crypto-currency and blockchain to be backed by a scientific approach. This means that it has a much better potential for success than other crypto-currencies. However, it is still under development and we cannot simply rule out the advantage that other blockchains have in terms of experience.

Crypto-currency prices are always unpredictable and you never know in which direction they will go. That’s why you need to be vigilant to make sure you don’t spend more than you can afford to lose. Always listen to what the experts are saying and keep an eye on the market news. Don’t invest too much at once.

 

 

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