We’ve seen Bitcoin, which is a blockchain-based financial system. We’ve also seen Ethereum – which is a blockchain-based Smart Contracts system. Now picture a scenario that could do both more efficiently.
Cardano is a decentralized, blockchain-based system powered by the ADA coin, the cryptocurrency which runs on the Cardano platform. Much like Ethereum, it is a smart contract-based system and can be used to run Decentralized Apps (called DApps). But Cardano is a layered system; i.e.
- It has a separate layer that runs ADA exchange, and
- A separate one that runs the Smart Contracts.
Cardano claims to be the first cryptocurrency that runs on a scientific peer review, ensuring its safety.
- Not surprisingly, Cardano was developed by Charles Hoskinson, one of the co-founders of Ethereum, and Input-Output Hong Kong funds its development.
- Ethereum can be called a second-generation cryptocurrency (with Bitcoin being the first), the Cardano cryptocurrency can be considered third-generation technology.
- this project aims to create a sustainable ecosystem that separates the transaction of ADA coin and usage of smart contracts into different layers and improves the shortcomings of Bitcoin and Ethereum.
THE FACTS OF ADA COIN
- ADA is the digital currency that fuels the Cardano platform.
- Its primary motive is to provide quick and safe currency exchange and allow users to operate various Smart Contracts and applications seamlessly.
- IOHK, along with a Japanese company Emurgo, began developing Cardano in 2015, and its first layer, Byron, was released in 2017, which is the layer for ADA. It is pre-capped at 45 million.
- Cardano is an attractive choice for many companies and corporations, especially those involving heavy uses of contracts. According to Cointelegraph, the Ethiopian Government and Cardano/ADA signed a Memorandum of Understanding, which will allow the government to employ the Cardano program in its Agritech sector.
WHAT ARE THE BENEFITS OF CARDANO
- Cardano is the first peer-to-peer transaction system based on scientifically tested theories. It aims to combine Bitcoin’s transactional properties with the Smart Contract and the DApps system of Ethereum.
- According to The Bitcoin Magazine, Hoskinson is developing a different language for the Smart Contracts powered by Cardano, calling it Plutus, which will have strict contracts that cannot be altered without the consent of either party.
- Cardano’s transactional processes work based on Smart Contracts. However, these smart contracts are more secure than that of other cryptocurrencies, as they are layered and allow significantly less tampering with the data once entered.
- Since they are based on blockchain technology, the systems will be decentralized and not reside with restricted individuals. Once the information is stored, contract executed, or transaction performed, it will be stored permanently in the ledger.
- The DApps created on this platform use ADA as their currency in the application’s virtual ecosystem and use its Smart Contract technology to create an interactive, virtual economy.
WHAT IS THE FUTURE OF CARDANO?
Cardano opened for trading in October 2017 for $0.025. Within just three months, it had peaked at $0.718 in January. That’s a growth of nearly 28 times – fairly impressive even by cryptocurrency standards. Here is the price movement of ADA over time.