What is Cardano (ADA)? What problems do they solve? Is ADA a coin worth investing in?… All your questions around ADA will be answered by Blogtienao in this article. Let’s find out together!
What is a Cardano
?Cardano is a decentralized Blockchain project that allows anyone to create smart contracts, much like the Ethereum Blockchain.
Watching: What is Cardano
The project is inspired by the best features of its predecessors such as Bitcoin, XRP and Ethereum.
Besides, Cardano is the first Blockchain to use proof-of-stake algorithm, while Bitcoin and most other cryptocurrencies use proof-of-work algorithm.
Since 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 also claims that Cardano is the third generation of Blockchain.
Why Blockchain Cardano is Blockchain 3.0
?According to project leader Charles Hoskinson, the Cardano project is Blockchain 3.0
Blockchain 1.0 – Currency
The Bitcoin blockchain is a prime example of the first generation of Blockchain. This generation of Blockchain allows the transfer of money from one person to another on a decentralized monetary system.
However, a major drawback in the first generation was that they only allowed currency transactions, 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 transparently trade currencies, stocks or anything of value, while avoiding third-party services.
However, this generation also has some problems. Prominent among them is the bad scalability.
There is a small note here that the Ethereum platform is moving to Blockchain 3.0 because the project is 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 the next level.
Therefore, the team focused on improving the weaknesses and adding what the previous two generations were lacking such as: scalability, interoperability and sustainability.
The project focuses on solving 4 important problems facing blockchains:
Scalability Interoperability Sustainability Administration Process more transactions with low fees and high speed
How does Cardano work
?Cardano’s foundation consists of two distinct layers:
Cardano Settlement Layer (CSL): This layer is now fully developed and live. Settlement allows users to send and receive Cardano coins from one wallet to another. This is similar to the fact that users can transfer ETH directly to each other Cardano Computation Layer (CCL): This layer is still under development. Once completed, it will allow users to create and sign smart contracts
Besides, the Ouroboros algorithm is an important part of the infrastructure in supporting the Ada cryptocurrency. This is also a major innovation in blockchain technology.
The Ouroboros algorithm was designed by a team led by Professor Aggelos Kiayias. He is the chief scientist of IOHK.
He said that while there are already blockchains built on the Proof of Stake protocol, none provide a truly random way to choose a validator. That’s why the team built the Ouroboros algorithm.
The algorithm eliminates the “energy-hungry” need of the Proof of Work protocol. What has been a barrier to the expansion of blockchain to wider use.
Besides, they contribute to faster transaction confirmation and lower transaction fees.
The level of security shown by the Ouroboros algorithm is also very good, as they have not been breached so far.
This video, produced by IOHK, explains how the Ouroboros algorithm works:
What’s the difference between Cardano and Ethereum
?In particular, Cardano’s architecture has two distinct layers that make the Cardano blockchain superior to the Ethereum blockchain because they allow for easier upgrades and increase the scalability. flexible.
Cardano Blockchain Transaction Speed
In older blockchains like Bitcoin or Ethereum, the number of transactions processed is very limited. Like Blockchain Bitcoin can only process 7 transactions per second and Ethereum is 20 transactions. Meanwhile, Visa processes an average of 1,667 transactions per second.
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No global payment system can survive if it can only process a few transactions per second. That is why, the Cardano team set a goal of tens of thousands of transactions per second for the platform to function perfectly as a payment system.
In fact, in a test in late 2017, the Cardano blockchain processed 257 transactions per second.
The project is released developed with three different organizations, namely:
Cardano Foundation: An independent body based in Switzerland. This agency is in charge of supporting the Cardano user community, working with the authorities on legal and commercial issues. IOHK (Input Output HongKong): A blockchain technology company founded in 2015. Headed by CEO Charles Hoskinson. The company assumes the responsibility of keeping the contract to develop the platform until 2020.Emurg: Business Partner of Cardano. The mission is to support investment capital for startups and support commercial projects built on the Cardano Blockchain.
The platform will go through 5 development roadmaps:
Byron: This is the organizing phase. During this period, the Cardano community is built and developed, users are allowed to trade cryptocurrencies, thousands of GitHub codes are committed, etc. Shelley: This is a phase of decentralization, a period of growth and development. net. During this phase, the platform will launch a reward system, incentive programs, stakingGoguen: This is the Smart Contract integration phase, which will be conducted in parallel with the Shelley phase. When completed, Goguen will allow users from technical and non-technical backgrounds to create and execute smart contracts on the Cardano.Basho network: This is the optimization phase, improving scalability and scalability. network interoperability. During this phase, the sidechain is launched and interoperable with the Cardano main chain, with huge potential to expand the network’s capabilities.Voltaire: This is the stage that provides the final pieces needed for the Cardano network. to become a self-operating system. In this phase the issue of voting and the treasury system will be introduced.
ADA coin overview
ADA is the cryptocurrency of the Cardano platform. Copper has the smallest unit lovelace (1 ADA = 105 lovelace).
You can follow the movement of the current exchange rate of ADA Coin at Blogtienao!
You can mine ADA
?You cannot mine ADA like Bitcoin, because the platform does not work on Proof of Work consensus. But you can stake Cardano to mint them.
Project pros and cons
Great development team. The founder has been a contributor to many successful projects in the past. Examples like BitShares and EthereumThe first blockchain to use multiple layers (Cardano Settlement Layer and Cardano Computation Layer) Unlimited replication: As more people use the blockchain, more transactions can be processed ADA coin provides transactions fast and cheap Cardano’s consensus mechanism is more eco-friendly than older blockchains, as well as fairer
Many claims are still theoretical, as blockchain is still under development Maximum scalability at the moment is only 257 transactions per second
Should I Invest in ADA
?ADA is not just a cryptocurrency, it is also a platform that helps run financial applications being used by individuals and institutions across the world. Around the world.
Classes in this platform are still being built. Once completed, they will provide the flexibility to allow an upgrade of a soft fork.
Cardano also operates decentralized applications and services that are not controlled by any third parties.
It is the first blockchain project designed by a global team of engineers and can be added on systems in several key industries such as aerospace and banking.
In addition, the coin is currently ranked 11th on CoinMarketCap (by market capitalization).
For the reasons above, this is probably an asset class worth considering for an investment.
However, any investment decision comes with both opportunities and risks. Therefore, you need to spend time researching carefully before making an investment decision.
Where to buy, sell and trade ADA
?Currently, ADA coin has been listed on many major exchanges such as Binance, Huobi, Bittrex, etc. So you can easily on any exchange. you like.
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Besides, you can easily trade ADA in Vietnam Dong on Vicuta. This is the floor of Blogtienao itself, so you can rest assured.
What is VICUTA floor? A guide to buying and selling Bitcoin and more than 280 Altcoins for newbies
Blogtienao has a very detailed separate article on this item, you can refer to the link below:
Top four reputable and secure Cardano (ADA) wallets in 2020
So we’ve brought you all the information you need about Cardano. Hope this article has answered your questions about the project. Good luck with your investment!