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Understanding Cardano (ADA)
Cardano is one of the most exciting blockchains currently being developed and now it's available in your Crypto IRA through iTrustCapital.
What is Cardano the network?
Cardano is a decentralized smart contract blockchain network, which runs on the Ouroboros Proof of Stake (POS) algorithm and features an academic peer-reviewed approach for design features. Since it runs on the POS algorithm, it’s low resource consumption and energy-efficient. The network was founded by Ethereum co-founder Charles Hoskinson and Jeremy Woods.
It uses the general-purpose Haskell programming language. Cardano aims to build upon the existing functionalities of the earlier smart contracts platform, learn from their fundamental shortcomings/design limitations and create a more advanced platform. Once in full operation, it will power smart contracts and the resultant decentralized applications (dApps).
The blockchain platform is unique in the sense that it relies on a research-driven evidence-based scientific approach for development and pushing features to the final versions. Its progress and development have been divided into five key eras, each introducing new features and enhanced functionalities. These are Byron, Shelley (current), Goguen, Basho, and Voltaire.
What is ADA the asset?
ADA is the native token of the Cardano network. The reference can be traced back to Ada Lovelace - also known as the first computer programmer. It is required for all transactions and activities on the network. Since the platform runs on the Proof of Stake (PoS) algorithm, users must lock-in and delegate their tokens, which reduces available circulating supply.
The token has a total supply of 45B tokens, out of which 32B are in circulation. ADA has excellent liquidity and is traded across almost all major exchanges - including iTrustCapital!
It is expected that with the launch of smart contracts and DApps on the platform, ADA usage will increase greatly as it will be utilized widely on the platform. The token is a secure medium of exchange, can be used for payments, and is the collateral to the PoS system.
Cardano is a third-generation blockchain network, which is still in development and therefore yet to achieve its full potential. Since its launch back in 2017, the project has steadily climbed to the billion dollars market cap club and constantly ranks amongst the top ten cryptocurrencies by market capitalization.
As noted earlier, the Cardano rollout has been divided into five areas. Goguen, the third era is all set to be launched by Q2 2021 and will bring smart contract functionality to the platform. ADA token’s value may continue to see exponential growth, with this launch and heightened activity on the network.
ADA token has seen astronomical growth over the years, starting from $0.03 in Apr ‘20 to $1.17 in the current month of Apr ‘21. This is a growth of ~3800% over a period of one year!
Investing in the ADA token is a bet that you believe the Cardano network will be successful, which many people believe is a serious contender for the future of crypto finance.
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