Cardano (ADA) is a top-performing crypto that shows promise for potential investors as its technology is relevant for today’s ever-changing environment and offers sustainable practices.
- Price$ 2.20
- Marketcap$ 70.84 B
Cryptocurrency is more popular than ever as the bull market increased the market to more than 1 trillion in market cap.
While cryptocurrencies are in a volatile environment, with prices surging and crashing 15% to 30%, the new digital assets are here to stay for potential investors.
In particular, Cardano (ADA), since its inception, has been a top 10 cryptocurrency based on market cap and one of the most affordable for new investors to purchase and hold.
Its blockchain platform also promises a sustainable future with increased efficiency compared to traditional cryptocurrency.
Read on to find out more about Cardano (ADA), its founder, its technology, and more.
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What is Cardano (ADA)?
Other PoW networks include Ethereum and Bitcoin, whereas Cardano is a third-generation, decentralized PoS platform that reduces energy costs and lessens infrastructure burdens than PoW. Also, PoS tends to have faster transaction times than PoW platforms.
The main partners of Cardano’s advancement are The Cardano Foundation, IOHK, and EMURGO. In particular, the Cardano Foundation oversees the branding and its visibility in the crypto world. IOHK powers the blockchain technology, while EMURGO is in charge of the adoption of Cardano.
The Ouroboros consensus protocol powers Cardano. It is one of the first PoS to be academically researched and proven to be secure.
This cryptocurrency is built in five sequences:
- Smart Contracts
Cardano mainly uses its technology for traceability and identity management.
For instance, traceability can audit the supply chain of a manufacturer and eliminate counterfeit products before they hit the market. Identity management is best described as simplifying the process of collecting data from various sources.
Currently, Cardano has three products that demonstrate their abilities:
- Atala PRISM: An identity management tool providing access to services, such as verifying credentials to open a bank account.
- Atala SCAN: Authenticates a supply chain to remove counterfeit goods, such as a luxury brand or pharmaceuticals.
- Atala Trace: Allows large companies to view their supply chain, ensuring transparency.
Cardano chose ADA as its cryptocurrency, naming it after Ada Lovelace, who was a 19th-century mathematician and is said to be the first computer programmer.
Lastly, Cardano allows holders to have a say in its governance, making it crypto that is “for the people.”
Who Are The Founders of Cardano?
Cardano was founded in 2017 by Charles Hoskinson. He saw the complications PoW networks would have and deemed them not sustainable and began developing Cardano in 2014, launching the platform three years later.
Hoskinson is considered a technology entrepreneur and is a mathematician. He has been part of many crypto projects before Cardano, such as BitShares and Ethereum (ETC).
In 2013, he started an online school to educate others on Ethereum and met Vitalik Buterin. Later, he was one of the eight founders of Ethereum.
However, he believed Ethereum should be for-profit, while Buterin thought ETC should be non-profit. Ultimately, Hoskinson left to create IOHK.
IOHK is a third-party company that assists companies in creating blockchains and crypto for various entities, such as banks, governments, academic institutions, and more.
Hoskinson considers Cardano an upgrade over Ethereum and believes it will replace Ethereum one day.
How Many Cardano Coins Are in Circulation?
As of June 2021, there are 31 billion ADA in circulation. The max supply of ADA is 45 billion.
When IOHK launched, they allocated 2.5 billion ADA. Another 2.1 billion was given to EMURGO. The Cardano Foundation has 648 million ADA.
Cardano’s total supply is split between the founders and investors, with investors holding an 84% stake.
How is Cardano Network Secured?
A PoS protocol known for its sustainability and security, called Ouroboros, secures the Cardano network.
Ouroboros is unique, mixed with technology and mathematically verified methods, blending with behavioral psychology and economics to increase its efficiency. Also, Ouroboros involves using people to verify and create new blocks.
For example, physical time is divided into epochs, made up of fixed period slots. Each slot is like a shift at a factory, with an epoch lasting five days and a slot lasting one second.
These numbers can change at any time after proposals from governance.
Once an epoch ends, another begins. Each slot has a leader thanks to a lottery system, where users with the highest stakes are more likely to be chosen as slot leaders. From there, slot leaders validate, create, and add new transactions.
For Ouroboros to work, a small number of ADA holders must be online with excellent internet connections. Ouroboros cuts down on consumption by having ADA holders organize into stake pools and electing others to represent the pool during execution, making it easy to create, even if they are not online.
Overall, Ouroboros primary goal is to provide ethical growth and achieve a sustainable future.
Should I Invest in Cardano?
Now that you’ve learned about Cardano (ADA), its founders, network, and technology, consider keeping up with the latest news on ADA to invest. Cardano is on the most popular exchanges, making it easy to purchase, store, and sell.
Consider that the future is about sustainability and finding more “green” alternatives, such as the electric car and solar power. Cardano’s network aims to be sustainable using less power consumption than the biggest crypto of them all—Bitcoin.
Cardano is similar to Ethereum, which also uses PoW like Bitcoin, which may find itself in the crosshairs of regulators who want to reduce power consumption.
Also, the blockchain platform aims for traceability and identity management, allowing companies to safeguard their goods and data.
Cardano shows it has potential for huge profits, going from $.05 to $2.30 in roughly one year, a 4500% return on investment. The technology is also promising, to the point people may think it will one day become more valuable and useful than Ethereum.
A secure platform that makes it easy to buy, sell, and store cryptocurrency like Bitcoin, Ethereum, and more.
I’m Donny. I’m a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.