Cardano (ADA)

Cardano (ADA)

What is Cardano (ADA)?

Recently, a coin called Cardano has received a lot of attention. Cardano is a new platform launched in September 2017. This platform has been researched and developed for two years. Hence, it is somewhat different from other cryptocurrency projects. Cardano is considered the third generation of digital currencies. The first generation was Bitcoin, or digital gold used to transfer or store virtual money. However, the coin has a scalability problem. The second generation of digital currencies started with Ethereum.

Ethereum partially solved the scalability problem. The third generation wants to outperform the previous two generations. Cardano seeks to address the three main challenges of first and second generations: scalability, interoperability, and sustainability. ADA is the local currency of Cardano. This coin is used to perform various operations on the network. IOHK oversees the development of the Cardano Protocol, Cardano Foundation oversees the project, and EMURGO is responsible for business development and acceptance.

Who invented Cardano (ADA)?

Charles Hoskinson is credited as the successful founder of Cardano. Hoskinson is an American mathematician and entrepreneur born in 1987 in Hawaii. Hoskinson was originally a business advisor. However, later he entered the field of cryptography. In 2013, He developed the bitshares network, a decentralized exchange platform. Then, He started teaching Bitcoin, and it was around this time that he met Vitalik Buterin, and the two (along with several founders) started the Ethereum Network project. In the early stages of the Ethereum project, Hoskinson argued that the platform should be a financial institution with a formal governance structure, while Vitalik Butrin sought to transform it into a decentralized organization for public use.

Ultimately, Hoskinson withdrew from the project in June 2014. In 2014, Hoskinson and Jeremy Wood founded IOHK. Their goal was to set up a third-party company to help companies, government agencies and academia build cryptocurrencies in the blockchain.  In 2017, Hoskinson introduced Cardano as the third generation of blockchain.

What are the advantages of Cardano over Bitcoin and other Altcoins?

As already mentioned, Cardano (ADA) has been researched and developed for two years to find solutions to Ethereum and Bitcoin problems. With new features, Cardano has been able to solve problems such as scalability in Bitcoin and smart contracts in Ethereum. The third generation of digital currency, Cardano, enables better use of smart contracts with clear policies.

Due to the technical nature of the network and programming, most worthless and non-targeted ICOs and projects are not viable in Cardano. Transactions are fast and fees are very low in Cardano. The unique design of this platform has led to the introduction of new capabilities in the blockchain. Developers with effective and targeted ideas can easily implement decentralized applications on this platform.

Disadvantages and challenges

Despite the many advantages of the Cardano platform, knowing its disadvantages is not without merit. As mentioned earlier, Cardano is a platform that has long been studied and researched. .However, this trend is still ongoing and its development is very slow.

Cardano still uses token standards and a flawed smart contract, which has shaken its position against Ethereum and EOS. The low speed of transactions is another disadvantage of this platform. Theoretically, Cardano can only process 257 transactions per second.

Cardano in the future

Until recently, few people could have imagined that the platform would be included in the list of the top 10 cryptocurrencies in the world. Today, Cardano has revolutionized the market and is becoming one of the largest cryptocurrencies. Due to fluctuations, the future looks exceptionally bright for this coin. In recent years, Cardano has accounted for a significant portion of daily cryptocurrency transactions.

Cardano attracts the attention of many traders, as it is one of the top 10 cryptocurrencies in the world by market size. Analyzes show that Cardano has tremendous potential for growth and development. According to these analyzes, its price is expected to increase by the end of 2021. Some analysts believe that if Cardano can successfully complete some projects to improve two layers of security, the price of this cryptocurrency will reach 12.37 by the end of the next five years.

What is staking? How much profit does it make?

In general, staking is an alternative to mining in order to participate in a blockchain network and make a profit. Simply put, staking is the process of locking and storing cryptocurrencies for rewards. Cardano is a good currency for staking. Staking in Cardano is periodic and rewards are transferred to the user’s wallet at the end of each 5-day period. The amount of profit received from Cardano depends on the platform, the amount, and the holding period of the asset. The profitability of this platform is quite reasonable and users can easily enter the staking pools and participate in the staking process.

Does Cardano surpass Ethereum?

Is Cardano really the killer of the Ethereum? This is a question often asked in the crypto world. In fact, Cardano and Ethereum have a lot in common. These two platforms act as programmable ecosystems. The coming years are very important for Cardano and Ethereum. Cardano plans to launch smart contracts, while Ethereum will move to stock-proof model. Cardano focuses on ways in which blockchain can solve real problems in developing countries. On the other hand, Ethereum focuses on economic applications. Given the bright future, it is possible that Cardano will overtake Ethereum, but this will not happen easily.

Final words

Cardano (ADA) has been able to get closer to Bitcoin and Ethereum by beating its strong competitors. Currently, Cardano is known as the third generation of digital currencies. Obviously, the 3rd generation solved the problems of the previous two generations and added many new features. According to studies, the potential of this platform is currently very high. Some analysts claim that its price will increase significantly by the end of 2021. Others believe that if Cardano can complete its two-tier security improvement project, its price will increase by 12.37% over the next five years. However, we have to wait and see what happens to the platform in the future.

Source: The Pipsafe Team

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