What is Cardano (ADA)? All You Need To Know

What is Cardano?

Cardano is a blockchain that was created in 2015. The native cryptocurrency of Cardano blockchain is called ADA. Cardano blockchain has the ability to run decentralized protocols using smart contracts. Developers can use the Cardano blockchain to develop and host decentralized apps on the network.

In this manner, the developers do not have to create blockchain from scratch. Cardano blockchain has a defined roadmap and it continues to incorporate updates on the blockchain network to ensure continuous development and added features.

Important Facts Regarding Cardano Blockchain

Here are some important aspects of Cardano blockchain:

• Cardano blockchain was designed to bring more sustainability to smart contract based blockchain networks.
• Cardano blockchain uses Proof-of-Stake consensus mechanism that conserves energy consumption and allow investors to stake their ADA holdings in order to validate transactions on the network.
• Cardano is also a decentralized blockchain network much like Bitcoin and Ethereum. Anyone can become a network validator, node, or perform transactions on Cardano ecosystem.
• Cardano is an open-sourced project which means that developers can view and use its underlying code to create new projects or generate decentralized applications.
• Cardano native currency namely ADA price depends on the growth and development of the blockchain ecosystem.
• The native currency of Cardano is named after a British scientist named Ada Lovelace who is also regarded as the first computer programmer in the world.
• ADA token can be divided into smaller units. The smallest unit of ADA is called 1 lovelace that represents 0.00001 ADA.
• Cardano is backed by IOHK an organization that seeks to develop this blockchain network.
• Cardano Foundation is a non-profit entity that looks after promotions, standardization, and security aspects of the blockchain project.
• Cardano is also affiliated with Emurgo, an international company for developing and distributing technology that works on introducing commercial adoption for the network.
• Cardano code is written in a programming language called Haskell.

How to Purchase ADA?

Ada is listed on all major cryptocurrency exchanges. Investors may be able to purchase this cryptocurrency by creating a verified account on a centralized crypto exchange. At the same time, investors may also be able to trade or swap the Ada token at decentralized exchanges such as Uniswap.

Cardano blockchain provides the investors with the option to stake their native cryptocurrency as well at the native decentralized projects.

In this manner, investors can earn yield on their stakes reserves. Furthermore, investors can also earn new ADA tokens by staking their ADA reserves in the blockchain in order to become a verified validator for the network.  

Investors can store ADA currency on a digital wallet application that offers support for this token.

How does Cardano Blockchain Work?

One of the most important aspects of Cardnao blockchain is that it has a legacy consensus mechanism known as Ouroboros. This type of verification model is based on Proof-of-Stake mechanism that allows the investors to become validators and earn ADA rewards by staking their existing reserves.

In this manner, the process of transaction verification becomes more secure. At the same time, Cardano developers also claim that the blockchain is more energy conservative since it does not depend on heavy-load blockchain networks such as Ethereum and Bitcoin.

Cardano blockchain consists of a staking pool where participants can commit the native crypto coin. The network has also incorporated a penalty for the bad actors that are attempting verify falsified information by confiscating their staked ADA reserves.

On the other hand, the validators who add new blocks to the network are incentivized by getting paid in the form of ADA tokens. Furthermore, they are also entitled to earn interest income on their staked ADA reserves.

Every stake pool on the Cardano blockchain represents a validator or a node. Each stake pool has an owner who operates and maintains the node and collection of participants who are contributing their ADA reserves into the pool.

The more staked currencies a pool have the greater their chances grow of getting appointed for transaction verification.

Conclusion

Cardano blockchain is ranked among the top 10 cryptocurrencies by market cap. The blockchain is known for massive TVL, considerable development activity, and continued upgrades added to the network.