What is Cardano?
Cardano was created as an alternative to Ethereum, and is the first decentralized blockchain protocol to use a scientific approach.
The main objective was to process more transactions at a lower cost and protect users’ data using distributed ledger technology and a smart contract program.
Cardano offers people the opportunity to create smart contracts, create decentralized applications (DApps) and send and receive funds instantly with minimal fees.
What are the use cases for ADA?
Cardano has a utility token, ADA. A ticker was inspired by the first female programmer, Ada Lovelace, who lived in the 19th century.
The total amount of ADA coins is limited, so that the coin is resistant to inflation. The token is a good mix of being secure and scalable.
ADA tokens can be used to pay transaction fees for using the platform. This is a reward for stake pool operators as they run a proof of stake system.
On top of all that, active users get an ADA for security supplies. ADA holders have the right to vote to change or improve the protocol and, in doing so, participate in its development. Developers use it to power their smart contracts running on the Cardano blockchain.
Why is Cardano standing out?
Security
Cardano has a smart contract program that provides security and scalability due to its unique two-tier architecture. Cardano Settlement Layer (CSL) uses ADA to manage all transactions with low transaction fees. Cardano Computation Layer (CCL) is a set of protocols that help drive smart contracts. It helps developers build decentralized apps (dApps), guarantees security, and makes small changes for end users.
POS
Unlike Bitcoin, Cardano uses Proof of Stake (PoS) consensus, which consumes less energy and reduces transaction fees. In comparison, the success of the Ethereum London hard fork serves as a concrete step for Ethereum 2.0 to move from PoW to PoS.
Scalability
Blockchains like bitcoin, ethereum and all other previous generations of blockchains can process only a limited number of transactions per second (TPS). Cardano aims to solve the current scalability problem by implementing the Ouroboros protocol, which is built on the Proof of Stake model. This ensured high transaction speed and a fair chance of getting rewarded. It offers features such as separation of layers, mathematical security in the selection of blockchain validators, a secure voting mechanism for token holders, and a highly scalable consensus mechanism.
Ouroboros Protocol
PoS algorithms involve nodes on the network that generate new blocks by holding their own cryptocurrency as collateral to verify transactions. Ouroboros relies on a different algorithm. The blockchain is divided into different epochs, each lasting about 20 seconds, and made up of slots. Each slot has its slot leader chosen by the stakeholders and is responsible for adding a block to the protocol.
Slot leaders have to make at least 50% of the transaction blocks in a given era. Input endorsers approve each block. An epoch can be divided infinitely, making it possible to perform as many transactions as needed. All participants who mine an era are rewarded for their services.
Anyone with a 2% stake in the Cardano blockchain can mine a block. Nodes with more significant stakes are more likely to be chosen as the slot leader. Multi-Party Counting (MPC) uses a form of randomness to make the election of slot leaders as fair as possible. It seems that each voter is tossing a coin and sharing the fair result with the others.
Where to store $ADA?
The best way to store your ADA tokens is with a crypto wallet. Hot and cold wallets allow you to securely store all your assets in one place.
- a hot wallet Always connected to the net and cryptocurrency network.
- a cold wallet There is a wallet that is not connected to the net and is reminiscent of a flash drive.
It should come as no surprise that there are many wallets out there, and each has its own advantages and disadvantages. get your simplehold wallet right Here and manage all your ADA with incredible ease!
wrapping up
Cardano was created in an attempt to cover the shortcomings of the blockchains of Bitcoin and Ethereum. That’s why the forum ended up with the following pros:
- more environmentally friendly than other blockchains, and is considered 1.6 million times more energy-efficient than bitcoin;
- Transactions within the network are much faster, so Cardano is more scalable than the aforementioned Bitcoin and Ethereum;
- It has an open-source code and a peer-reviewed platform which guarantees its further development and development.
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