Cardano is an open-source blockchain designed to help run financial applications around the globe. It can be used to send and receive digital money, ensuring transfers have been cryptographically secured.
In this guide we will cover the ins and outs of Cardano and how you can get involved in 2021.
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Cardano is an open-source blockchain project. It was developed in several layers to help run financial apps used by governments, businesses and consumers around the world. It’s used to send and receive digital money, promising fast, direct transfers for all involved. The development process was layered to help developers maintain and upgrade the blockchain with soft forks, instead of one large overhaul. The currency for Cardano is ADA.
Cardano is the only cryptocurrency to adopt a research-driven approach to solve problems faced by the modern customer. As technology continues to advance, we’re starting to experience new issues that require new solutions. Cardano wants to be the first to solve these problems, using its layers to quickly adapt. The devs aim to run decentralised apps in the future, building single processing layers for smart contracts related to financial regulations and legal agreements.
Cardano is consistently peer-reviewed by a team of experienced engineers and academics to make small, minor improvements. By making these changes, the developers hope to deliver applications that can be scaled to millions of daily users. Their approach is so thorough that it’s been compared to mission-critical banking systems.
By focusing on the challenges met by users and regulations, the cryptocurrency hopes to gain a competitive advantage in the industry. It’s believed that this new style of regulatory digitisation will deliver financial freedom and inclusion to millions of people who don’t have access to financial services. The ADA token is being used to ensure the quick and affordable transfer of money, whilst the underlying network will help to bring regulatory efficiency.
As of August 2021, ADA has a market cap of $58,149,206,647 with 33 billion tokens in circulation. The maximum supply is 45 billion with a fully diluted market cap of $96,380,478,236. One ADA token currently costs $2.14 and has reached highs of $2.30 in 2021.
One of the biggest advantages of ADA is its development team. It was founded by Charles Hoskinson and Jeremy Wood, the co-founders of Ethereum. As well as having great founders, it’s consistently peer-reviewed to prevent bugs and hacks.
This leads to the advantage of academic backing. Many of the academics peer reviewing the project work for IOHK and write papers on how Cardano can be improved. This gives it the credibility that many alternatives lack.
There has been a dispute amongst users regarding the implementation of a voting system in the future. Many developers believe that token holders are not always tech savvy, whilst holders state they should have a say in the future of the token.
Although being technologically superior, Cardano has not yet been adopted by the public. It could be argued that more marketing is needed to appeal to the masses, rather than bragging about the technological advantages.
How does Cardano work?
Cardano follows a different model than traditional blockchains. The blockchain is formed by two layers. A settlement layer and a computational layer. The first layer allows users to send and receive ADA from one wallet to another. It uses a similar method employed by Ethereum. The second layer is designed to help users initiate and sign up to smart contracts. This model is also similar to Ethereum, though built to be superior.
The model can be adapted based on the requirements of its users. This is useful as every country has its own financial and monetary regulations. A single contract can be written in a way that can change how information is processed, accessed and stored based on these regulations. As the computational layer is separate, ADA users can use the same currency whilst operating within their countries laws.
How to Buy Cardano online
You can buy ADA on most popular exchanges. These include Coinbase, Binance, Kraken, eToro and SoFi.
Start by opening an account on any of the exchanges noted above. If you already have an account, log in and make sure your account is funded.
After funding your account, search for ADA and select the number of tokens you want to buy.
Click “Buy” and check your wallet to ensure the transaction has gone through.
How to Trade Cardano
As Cardano is a relatively new token, it’s not yet very popular amongst traders. Though if you want to trade your ADA for another cryptocurrency, you can do so using the exchanges listed above.