Cardano (ADA) is considered a third-generation blockchain, following in the footsteps of Bitcoin and Ethereum. Cardano aims to compete directly with Ethereum, a decentralized application (DApp) development platform with a multi-asset ledger and verifiable smart contracts.
Cardano price
Cardano price has increased by 0.36% in the past week. A single ADA is currently trading at $0.5016 with a current circulating supply of 33.9 billion ADA, according to coinbase.
In September 2021, it reached its all-time high of $3.10. To buy ADA, you can register for an account with one of the major cryptocurrency exchanges such as Binance, Coinbase, Gemini, and Kraken, and then you can store ADA on the same platform or in a crypto wallet.
Cardano’s business model
Cardano is based on a Proof-of-Stake consensus through its native Ada token that validates transactions without requiring high energy costs. It achieves this by removing the massive computing resources used by the algorithm. Charles Hoskinson, who is also the co-founder of Ethereum, started the development of Cardano in 2015 and launched the platform in 2017.
The Cardano blockchain is divided into two separate layers: the Cardano Settlement Layer (CSL) and the Cardano Computation Layer (CCL). The CSL contains the ledger of accounts and balances where transactions are validated, while the CCL layer is where all calculations are performed for applications running on the blockchain using smart contracts.
Unlike other cryptocurrencies that are developed to be peer-to-peer payment systems, Cardano is an ecosystem that allows other developers to create tokens, decentralized applications, send and receive payments, or create other use cases for scalable blockchain networks. With it, users can install compatible wallet software on their computers or devices, to start staking their ADA and start earning rewards as network validators.
Is Cardano a good investment?
Cardano has seen tremendous growth over the years and is currently the eighth largest cryptocurrency by market capitalization with a market cap of $16.9 billion. Due to its real-world use cases and robust peer-reviewed process, some experts consider the Cardano ecosystem to be one of the most future-proof cryptocurrency ecosystems, with potential for industry adoption beyond of the cryptocurrency industry.
One of the reasons that makes Cardano attractive is that it offers long-term scalability and fast transactions. Compared to its rival Ethereum, which offers 15 transactions per second (TPS), Cardano can process up to 250. Its native token ADA has also performed well in providing users with great returns as it has increased by more than 2,300% since its launch in 2017. Cardano is designed to develop in “eras” named after notable figures in poetry and computing history. It is currently in the Basho stage of scaling and optimization, aimed at bringing more capabilities to Cardano.
Last month, Cardano announced that it is rolling out its Vasil update which aims to increase functionality, performance, scalability and interoperability in Cardano through new features and improvements.
In addition to being a peer-reviewed network, Cardano works closely with academics to generate peer-reviewed research to guide blockchain development and improvements. The open source nature of this peer-reviewed blockchain helps it continuously evolve to meet market demands.
Given the volatility and high-risk nature of the cryptocurrency markets, it is important for investors to do their own research on the particular cryptocurrency to determine if it is a good fit for their investment portfolio. Whether Cardano or any other crypto is a suitable asset to trade will depend on your risk tolerance and how much you want to invest. Most importantly, remember to never invest money you can’t afford to lose.
How to mine Cardano
Users cannot mine Cardano, but can earn rewards by staking. Staking is the process of participating in validating transactions on Cardano’s Proof-of-Stake blockchain in exchange for staking rewards. Proof-of-Stake protocols, unlike Proof-of-Work, use significantly less energy. This reduces energy and waste footprints by not requiring large amounts of electricity to power computers designed specifically for mining, making them attractive to investors.
Ada is given as a reward for work done for the blockchain by users participating in a pool of shares. Cardano is penalty-free, which means delegates have full control over their ADA. There are several staking pools you can choose from to stake your ADA.
Image: Cardano