Overview of Cardano Cryptocurrency
Quotes of all cryptocurrencies are falling, which affects their market capitalization. This pattern has been observed since January 2018. In March 2018, a cryptocurrency began to flicker, which at a certain stage burst into the top five. Now she is confidently in the top ten in terms of capitalization.
Description of Cardano cryptocurrency
ADA is a version 3.0 cryptocurrency, according to the developers, their project will correct the sins of the first two versions. Bitcoin is a 1.0 cryptocurrency, is a means of payment, Ethereum is a 2.0 cryptocurrency, a platform with smart contracts and crypto money functions. In version 3.0, the issue of scalability and connection of different blockchains is resolved.
In its work, the Cardano project is guided by a scientific approach. Before any solution is implemented, it is reviewed by scientists from three universities – Edinburgh, Athens and Connecticut. Due to this solution, efficiency is increased and less time is spent on improvements.
How does Cardano work?
The blockchain is divided into layers. So far, the Byron layer has been launched, which is responsible for performing payment transactions, implementing cardano as a cryptocurrency. The second layer of Shelley will be launched in the second quarter of 2018 and will allow the use of smart contracts, which will bring it closer in functionality to Ethereum.
Using the Proof of Stake algorithm solves the scaling problem. With which bitcoin and ethereum have been fighting for a long time, working on the Proof of Work algorithm, which is slower and more energy-intensive. The developers claim that their PoS algorithm is the same in terms of security as PoW with a minimal chance of hacking the system.
The team’s main goal is to maintain a balance between confidentiality and openness for regulators and regulatory authorities. They try to find a compromise between the personal freedoms of users and the desire of governments to control everything.
In 2014, Charles Hostings and Jeremy Wood created the IOHK company, and from that moment the story of the Cardano project begins. Charles Hostings previously worked in the notorious Ethereum and held high positions there up to the CEO. Major Japanese investors have hired the IOHK team to build a new blockchain platform. In 2015, the ICO started, which lasted two years and ended in January 2017. During this time, more than 62 million US dollars have been collected.
The platform is managed by three independent companies with different owners:
- Cardano Foundation (Switzerland) – creates standards according to which the project develops and monitors their implementation.
- IOHK (Hong Kong) – developers who are building a blockchain platform.
- Emurgo (Isle of Man) is an investment company that is responsible for promoting the project in the commercial field.
How to mine Cardano ada?
In total, it is planned to issue 45 billion ADA tokens. The distribution is carried out as follows:
- 57.6% of tokens sold during ICO
- Developers keep 11.5%
- 30.9% reward to miners for keeping the network running.
The mining feature is not yet enabled, but it will be implemented using the delegated proof of stake algorithm. To take part in mining, you need to be the owner of cardano coins, the more there are in your wallet, the greater the opportunity to take part in mining. This is apparently one of the reasons that its capitalization jumped. More assets, brings more assets. In order not to overload the network, network leaders are selected, who create new blocks, and then transfer them to the common blockchain. This is the delegation of the algorithm. 25% of the mined tokens will be automatically transferred to the treasury to pay for the services of third-party developers. Cardano’s algorithm has its own name – Ouroboros, the mythological serpent that devours itself.
Where to buy Cardano cryptocurrency?
It is not possible to purchase an ADA token directly for rubles. Ruble exchanges and crypto exchanges can be used to buy other cryptocurrencies, after which you can buy Cardano itself on other exchanges. The choice of two well-known exchanges will be optimal – the Chinese Binance, or the American Bittrex. The Binance exchange has a current interface to make things easier. Once bitcoin or ether is purchased, you can easily buy ADA. On Bittrex, it is possible to buy for fiat money – US dollars. Small amounts can be stored on the crypto exchanges themselves, but if the amounts are large, it is better to transfer money to the official Cardano cryptocurrency wallet.
Registration of new users on the Binance crypto exchange is limited.
Cardano currently has two types of wallets – desktop and mobile. Mobile wallet available for IOs and Android. The desktop wallet does not yet have all the planned potential. For now, you can store and send Cardano coins on it. Over time, they will include the storage and exchange of bitcoin and ethereum, in the future it will be possible to connect other blockchains and cryptocurrencies through a wallet. It is also planned to use it to run decentralized applications developed by IOHK. You can download it from the official Cardano website in the “GET STARTED" tab, then “The Daedalus Wallet”. After installation on a computer, you can use the wallet.