What is Cardano coin? Cardano is one such cryptocurrency that has risen in popularity and has a distinct feature making it popular across the investment spectrum. Digital and alternative currencies are getting more and more acceptability and popularity all across the globe. The skyrocketing prices of some popular digital currencies made several small to medium investors unexpectedly richer overnight and the trend continues in 2018 as well. However, as the Blockchain technology is evolving new entrants are making their presence in the cryptocurrency market. While Cardano’s trading Token ADA has been consistent in performance and is showing tendencies of better prospects here’s what you should be knowing about Cardano.
Here are the questions this article answer:
- What is Cardano?
- How Will Cardano Fare in 2018?
- How can be used Cardano token- ADA?
- What are the features?
- What is “proof of stake algorithm”?
- What is an Ouroboros?
What is Cardano?
Cardano is an open source platform for applications and is decentralized in nature. The computer algorithms made use of, are self-executing, and eliminate the need for human interference. Cardano runs smart contracts and offers metadata and sidechains. Transactions are processed much quicker than traditional first and second generation cryptocurrencies. Cardano can also handle more complexity. The philosophy of Cardano revolves around a research-driven approach. There is a team dedicated to research and innovation. It evolves out of a philosophy based on science. It may be similar to Ethereum in terms of its use of smart contracts but its features are much more advanced. Cardano is at times considered to be the apparent heir to Ethereum.
How Will Cardano Fare in 2018?
Cardano is one of the top ten cryptocurrencies in the market and has a market cap of billions USD. The current value of Cardano is around 0.12 USD and is bound to rise in 2018. Cardano is expected to see the highest price growth in the third quarter. The value of Cardano is expected to rise by 100% by end of the year. The coin is expected to scale the region of 0.25 – 1 USD by the end of 2018. Cardano can be one of the highest gaining coins in 2018.
Cardano makes use of the cryptocurrency Ada. Ada allows for direct transfers at quick speeds. The transaction is secure due to research and cryptographic practices. The Daedalus wallet must be used by investors. This wallet is deterministic and secure. It is hierarchical and multiplatform based and was specifically designed to meet the needs of this cryptocurrency. Always ensure that you store your cryptocurrency in a wallet. Hardware wallets are most preferred for this purpose. Never store your coins online as they may be stolen. Ada can be easily bought on any popular exchange. There are several methods to purchase Ada via direct trade as well. One can also exchange a particular cryptocurrency in turn for Ada. Binance is a popular medium to purchase Ada and is easy to use.
What endears the audience is the scientific approach the coin is based on. It conforms to a research-oriented methodology and constantly strives for innovation. It is transparent and auditable as well. Its transparency allows users to check transaction histories. The unique Block Explorer of Cardano allows for this. Transactions are recorded and maintained in a public ledger. Every detail of the transaction can be seen including the amount sent, the sender address, the receiver address and the time and date of the transaction.
IELE Virtual Machine is a new feature of Cardano. Its application makes smart contracting even easier. Accounting and computation have been separated into different layers. The research team aims to make the use of the cryptocurrency safe in mobile devices. They realize the potential of this market. Sidechains are essentially parallel chains which run in sync with the main chain. The attachment is through a two-way peg. It is essential as it creates a sense of interoperability between the main chain and the side chain as well as giving a compressed and precise version of the blockchain in question.
Proof of Stake
Proof of work mining involves solving cryptographic puzzles in an attempt to win Token. Mining machines solve a huge number of computational problems to unravel a new batch of the prized asset. Proof of stake is set to change all this. Proof of stake will introduce the concept of validators to replace miners. The entire mining process will become virtual. Validators will lock a portion of their coins as a stake. These validators will then validate blocks.
If a block can be added to a chain, its validation is guaranteed by placing a bet on that block. On appending the block, the validators are rewarded with an amount in proportion to the bet they placed. The FTS algorithm can be made use of as well. It selects any random coin from a stake and places a bet on it. The owner of the coin becomes the leader of the slot. The more the stake one owns in a system, the larger is the possibility of the stakeholder winning the lottery. It is that simple. The Cardano ecosystem serves as the basis for slot leaders as their power encompasses not only the blocks in the main chain but other blocks in other blockchain presents within the same ecosystem.
Ouroboros is a proof of stake algorithm quite similar to Ethereum’s Casper. They differ in the manner in which the validators are selected. The procedure of choosing a validator must be random to ensure security. Ouroboros makes use of a coin-flipping protocol to ensure this randomness. The leader election process follows this protocol and maintains the security of block chains.
Blockchain technology has completely redefined the way we exchange and transfer money. With more and more people joining the ride exchange and trading currencies is also seamless and smooth. If you want to start with your Crypto trading journey, Cardano is definitely not a bad choice to begin with.