what is Cardano cryptocurrency and how does Cardano work
Globalization in the technology has given rise many norms that have made the financial system effortless. Of them, the evolution of bitcoins has made transferring of money, saving value and exchange of money easier. There are about 4000 alternates of bitcoins called alternate coins. Out of these, ethereum, ripple gained the importance due to their paramount benefits.
Cardano is an alternate of bitcoins and is known as the third generation bitcoin. It is launched in September 2017 by “Charles Hoskinson”. Cardano is the fifth most valuable cryptocurrency with the market capital $18.8 billion.
So, what is Cardano?
Cardano is a contract based system which is used to run decentralized apps(DApps). It is a decentralized system by “ADA” that runs on a Cardano platform. This third generation blockchain which has undergone a peer to peer review by the scientists. It is done in order to maintain a balance between privacy and decentralization. Cardano is a combination of bitcoins and ethereum.
Decentralized applications use ADA as the currency in the virtual ecosystem. It also uses a smart contract to induce the virtual economy.
It uses a programming language called “Haskell”. This is to eradicate all the fault and complexity of blockchain systems. It is impossible to which system persists for a longer time. So, a difficult language like Haskel is used to margin the errors.
Cardano is a layered system. One performs ADA exchange and the other runs smart contracts.
If your company is involved in making contracts Cardano is the right choice.
Benefits of Cardano
- It is the first peer to peer system that is scientifically tested with the proven best results
- It is made of hard to read languages like “Haskel” and “plutus” which makes it hard to alter the information that means there will be no chances of fraud
- Transactions are done based on smart contracts. These are more secure than other cryptocurrencies
- As Cardano is a layering system there will be no data tampering
- Once the information is entered it gets stored in the ledger without worrying about the information loss
How does Cardano work?
It is developed in two layers Cardano settlement layer (CSL) and Cardano computation layer(CCL). Each separates the ledger account and transfers the value. This separation will make the smart contract more flexible. It ensures the top-notch contracts that fit into all cases.
Cardano settlement layer
CSL acts as a balanced ledger. It uses proof of stake consensus algorithm to confirm the transactions thereby generating new blocks.
Cardano computation layer
CCL stores all the info on why transactions occur within the layers where the smart contract will run. As the computation layer is separated users can establish their rules and regulations while evaluating the transactions. A language is developed to evaluate the transactions called Plutus
Does Cardano have a currency wallet?
Yes, it does and is known as “Daedalus wallet”. This is a multi-currency wallet where you can store all the supported value in it. It presently supports bitcoins and ethereum. There are different apps launched by Daedalus community. This wallet is presently compatible with Windows and Mac.
Proof of stake
Cardano team has developed a maximum of 45million ADA coins. Nodes validate new coins that enter the ecosystem. This validation is done through a unique system called “Ouroboros proof of stake”. Slot leaders validate the transactions from newly generated blockchain. Anyone holding a Cardano ADA would be the leader of the slot. When “Satoshi algorithm” generates a coin that you have, you will attain the rights to publish the new blocks.
Sidechain is a protocol that displays the results of the proof of work. It is a secure and non-interactive fund movement from CSL to CCL supporting the new protocol.
KMZ side chains reduce complexity. Regulatory requirements, private operation, robust scripting are the black boxes of CSL which guarantees the accounting and recall funds.
How to buy and store Cardano?
- They can be purchased on the major platforms like coin switch, Binance, Bitrex. It said that ATM’s in Japan will soon purchase ADA. That means you can exchange your currency with the Cardano. Coin switch allows you to compare the exchange rate and is the secured way of storing.
- As discussed earlier, Storage of ADA’s is done on its official wallet called Daedalus wallet. You can also save cryptocurrencies creating a medium of exchange between ADA and other cryptocurrencies
How does Cardano differ from others?
- There is a generation gap between each currency. Bitcoins are the first generation cryptocurrency. Ethereum falls into second while Cardano is the third generation cryptocurrency
- It carries the ancestral properties of ethereum. It differs as it comprises of different layers separating the functions of transactions
- Compared to the bitcoins, smart contract of Cardano is safer and secure as it uses a difficult language called Plutus.
- Ouroboros proof stake saves energy and costs ensuring the fast transactions compared to the mining rugs (bitcoins) and bank systems (ethereum).
- Interoperable with the natural ecosystem and existing financial systems
- Cardano facilitates the cross chain transactions
- Automates the transactions with the online exchanges
Is investing in Cardano the right option
Cardano is the new virtual currency with the supply of 45million ADA coins. The price of Cardano is too high but investing in Cardano would bring fruitful results in the future.
Cardano is the modernized cryptocurrency that may tackle the problems of the blockchain industry. Cardano boosts the vision of the crypto industry. It is highly secured as it is peer to peer reviewed by research authorities. So, Cardano is considered as the most secure means of completing a transaction.