With so many cryptocurrencies out there, it is hard to know which ones are working, why you should invest in some and others not, and work around this economy that has been taking over the world during the past few years.
Bitcoin and Ethereum are definitely the ones you hear and read about the most, but others like Binance and Dogecoin are definitely getting somewhere you should be paying attention.
Among those currencies, Cardano, or more like ADA, is one to look out for if you are trying to find a low cryptocurrency you can invest in and expect not to lose your time, money, and efforts.
However, how can you invest in something you barely know about? And would we recommend doing so with ADA?
There’s a lot involved to answer all your questions, which is why we decided to dedicate a post that can help you determine whether the currency is worth it or not and get to know it a bit better.
Simple Question: What Is Cardano (ADA)?
Unlike what you might think, it isn’t hard to understand this coin. After all, it is very similar to other cryptocurrencies.
Therefore, let’s just describe ADA/Cardano as a digital coin that can be used to store value or send and receive funds.
It is important to know that ADA is the cryptocurrency in specific, which runs on the Cardano blockchain, so you can consider both of them to be a bit divided or different.
The Cardano blockchain is a first-of-its-kind decentralized network, which is based on scientific and mathematical principles. At the same time, experts took the time to design it to guarantee the best performance.
Smart contracts can be built using the Cardano blockchain, allowing for decentralized protocols and applications.
Cardano is not trying to stop global regulators. Instead, it is creating a blockchain with regulation as its goal so that all can access financial services.
It is crucial to know that Cardano’s platform is based on the Ouroboros consensus protocol to understand how the coin works.
Ouroboros was created by Cardano during its foundation phase. It is the first PoS protocol to not only be proven secure but also to be informed and supported by academic research.
The Cardano roadmap’s development phases, or eras, are anchored by the research framework. This includes peer-reviewed insights and evidence-based methods that allow for progress towards and achieving milestones related to future directions of the use of the ADA token and blockchain network.
Its Creator: Charles Hoskinson
Getting to know a currency requires more than just going through all the information of its background, how it works, and what you can expect from it.
This is why we like to focus on its creator and not only of the crypto itself but also the platform behind it and how he came up with the idea.
Charles Hoskinson, a Colorado-based technology entrepreneur who is also a mathematician, is the brain behind creating ADA and Cardano.
He was born on November 5, 1987, and while being only 33 years old, he has revolutionized the world of cryptocurrencies with a new addition that looks promising.
To study analytic numbers theory, he attended the Metropolitan State University of Denver as well as the University of Colorado Boulder. He then moved into cryptography by industry exposure.
His professional experience includes founding three cryptocurrency-related start-ups: Invictus Innovations, the famous Ethereum, and IOHK, while also being relevant in the public and private sectors by holding several posts.
Another addition to his curriculum is the fact that he was the founder chairman of the Bitcoin Foundation’s education panel and established the Cryptocurrency Research Group.
His current projects include educating people about cryptocurrency and being an advocate for decentralization.
He also works to make cryptographic tools more accessible for mainstream users. Cardano, a third-generation cryptocurrency, was launched in September 2017 by his team and with the main goal of dealing with the current problems of the cryptocurrencies available.
How did he come up with the idea of creating Cardano and ADA?
During the first years of Ethereum, Hoskinson noticed the need for a more standardized blockchain that could scale in the process.
For it, he started thinking about scientific ways to create a blockchain. Meanwhile, Jeremy Wood, a former employee at Ethereum, was also looking for a better platform to build smart contracts and blockchains.
This led them to begin to explore Cardano in its current form and how they could improve it to bring down the stigmas around cryptocurrencies.
What You Must Know: Cardano & ADA Background
Although the platform and coin are relatively new considering other options like Ethereum and Bitcoin, there’s a lot of history behind it.
The development of the platform started in 2015, even when it was launched in 2017.
Hoskinson, a former contributor in Ethereum, left after a dispute with one of its co-founders, Vitalik Buterin.
Charles wanted to accept venture capital and create a for-profit entity, while Buterin wanted to operate as a non-profit organization.
After leaving, he co-founded IOHK, a blockchain-engineering company whose primary business is the development of Cardano, alongside the Cardano Foundation and Emurgo.
The Cardano Foundation, IOHK, and EMURGO share responsibility for the development of the Cardano protocol eco-system. Therefore, the legal custodian of the brand is the Cardano Foundation, which is a non-profit.
The foundation promotes the protocol’s visibility on the international stage, fosters use-case opportunities, and connects with policymakers and regulators as well as academia.
IOHK, a software engineering, and technology company that built Cardano has a research arm that promotes blockchain education and collaborates closely with academic partners to further its educational mission and improve the long-term scalability of the Cardano protocol.
This is done by using peer-reviewed scientific research that informs platform updates before they are implemented.
EMURGO, a global technology partner, is responsible for driving commercial adoption of the Cardano protocol. It integrates businesses from a wide variety of sectors into its blockchain system.
Cardano was created through an initial coin listing, and its market capitalization was $600 million at its debut.
It had a market capitalization of $10 billion by the end of 2017 and a short-term value of $33 Billion in 2018.
However, it lost its value to $10 billion due to tightening in the crypto market.
Now, from where does the name come?
“Cardano” comes from Gerolamo Cardano, while Ada Lovelace was taken as the inspiration for the currency. This 19th-century countess was also an English mathematician and known as the first computer programmer.
Using Cardano (ADA) – Why It Is Worth Your Money
Cryptocurrencies tend to have a similar or unique use in terms of buying products and items. However, those who have been in the industry for a while know that it is possible to use them for other purposes.
To begin with, they weren’t exactly created for spending directly as any other currency.
It is true you can use ADA as any other cash or coming to transfer value, but the main uses lie somewhere else.
Cardano’s PoS blockchain protocol is one of its core principles. This protocol allows ADA to be staked to the blockchain and enables stake pool operators to verify transactions on the blockchain.
But what do you earn from doing this? Simple. Cardano’s crypto is a great solution since the platform rewards those who contribute to the platform with more ADA coins. At the same time, the system of staking helps to maintain security on the blockchain.
ADA can also be used to vote since Cardano is different from other blockchain projects. How? By the fact that it is not miners who vote on protocol changes, but token holders.
Cardano crypto holders can vote on any proposed change to the Cardano blockchain using their ADA. Basically, every owner of the cryptocurrency can participate in its development.
However, beyond those uses, Charles has the goal to have ADA used in the future to power the innovative contract platform built on the Cardano blockchain.
Developers will use ADA to create smart contracts and other applications that run on the secure and decentralized blockchain, and those won’t be able to be executed without ADA.
Investing in ADA or a Better Opportunity?
You will see that cryptos can be both great and terrible options if you are looking to make money or invest in them since even when they are growing and gaining popularity, it is hard to deal with how volatile the market is, especially with new coins like Cardano.
We have learned that cryptos can be a great investment but also really risky due to how much you can lose even faster than what you can earn.
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