ADA: know everything about Cardano, a cryptocurrency with a promising future

The result of two years of development, Cardano is among the top 5 most promising cryptocurrencies. For some specialists, the ADA will revolutionize the world of Internet currencies. Find out everything about the future competitor to Bitcoin and Ethereum.

Cardano (ADA), an alternative payment method

It took two years of hard work for Charles Hoskinson to lay the foundations for Cardano. This virtual currency was created in 2017. Like many others, it is based on soft fork blockchain technology. In short, it relies on a vast network of computers equipped with good computing power to validate the circulation of ADA, the native token of this virtual currency.

Like Bitcoin, Cardano encompasses an entire financial ecosystem independent of banks and states. However, consumers around the world can use it for fiat transactions, including paying for purchases and transferring balances. Cardano will soon be able to be used as a payment method for e-retailers and government organizations.

Unlike other cryptocurrencies, Cardano continues to develop. For the future, it will gain more notoriety thanks to decentralized applications (dApps). After this maturation phase, smart contracts that bind users together will result in standardized financial regulations with legal value.

https://www.youtube.com/watch?v=N90F410zcQY

A reliable, scalable and realistic cryptocurrency

Despite the public enthusiasm for it, Cardano is still in its infancy. The project initiators advocate a scientific approach to establishing a reliable blockchain. A whole team of engineers and experts are working hard on scalable technology. It is intended to be robust to the point that millions of Internet users can use it daily without the slightest bug. In other words, the ecosystem remains as meticulous as those of the standard stanmonetary banks.

When Cardano is completed, this cryptocurrency will be able to meet several expectations. It promises to be a payment and transfer solution adapted to the needs of the general public, not just those used to “coins”. Then, its transparency should allow it to comply with the various standards governing currencies and the market. Ultimately, the ADA should serve all profiles, in this case those excluded from the banking system.

In summer 2021, 1 ADA is exchanged for €1.75. Cardano continues to increase in value since the start of the year. Like other cryptocurrencies, the upward trend has been observed since the health crisis. Around mid-August 2021, this digital currency was ranked 4th in the top10 by CoinMarketCap with €56,716,561,097 in market capitalization.

An entire monetary system based on multi-layer technology

As with cryptocurrencies, Cardano is based on the blockchain. Unlike first generation (Bitcoin), it uses multi-layer technology. The complex verification system includes a regulation section and another reserved solely for calculations. To date, only the initial layer has been completed. The second still awaits improvements from contributing developers, as with all open source programs.

Currently, this virtual currency already allows users to send or receive ADA tokens between two Cardano wallets. It works the same as Ethereum. Users are free to enter into smart contracts with each other. That said, this is not a clone of an existing system. On the contrary, this motto brings innovations.

• The adaptive blockchain adapts according to the needs of end users. Thus, a country can also dictate its own regulations regarding the ADA.
• A calculation layer managed by the team behind the Cardano project creates updates without impacting current transactions. Moreover, the stock market value cannot be artificially increased.
• The soft fork or proof of stake verification protocol allows validators to confirm that an ADA token is truly based on work provided. Which is equivalent to the gold counterpart for certain banknote-issuing central banks.

An unusual level of reliability for the ADA

Cardano is developed at a time when cryptocurrencies have acquired a certain maturity. The engineers behind the project know the delaying tactics that could weaken the ecosystem. The separation between ADA tokens and smart contracts between users are very distinct. Which constitutes an additional guarantee in terms of reliability.

A level of encryption similar to that of traditional banks provides Cardano with optimal protection against cyberattacks. The devices in place preserve the integrity of the system, but also cover user data. In any case, this digital currency relies above all on humans in whom consumers have full confidence. The 3 pillars of the ADA are:

• The Cardano Foundation, a structure based in Switzerland whose mission is above all to ensure that the currency complies with the standards and legislation in force.
• The Input-Output team which is responsible for the blockchain engineering behind ADA tokens.
• Emurogo, an international company whose purpose is to offer payment solutions for merchants, government organizations or start-ups who wish to integrate Cardano into their platforms.

Ethereum and Cardano: how to understand the difference?

As you know, the world of cryptocurrency is even more complex to understand than you could have imagined! To realize this, you just need to see the different information that you can find on news sites, on discussion forums, or even on social networks where some people do not deprive themselves of to talk about it… But, as far as Ethereum (ETH) and Cardano (ADA), it may be interesting to look at a little more complete and precise information!
ethereum vs cardano

The particularities of this monetary ecosystem

Unlike other digital values, Cardano does not allow mining. For good reason, it uses a proof of stake protocol. To be able to profit from ADA tokens, you must open an account and actually carry out transactions. The wallet is mainly used to store cryptocurrency.

The operating principle of Cardano remains the same as for Bitcoin and Ethereum but with some improvements. Several types of binders are available to meet distinct needs. Users have the choice between:

• AdaLite
• Atomic Cardano Wallet
• Coinswitch
• Daedalus
• Guarda
• Infinito
• Ledger
• Yoroi (Google Play)

Ideal for sending money and investing

The ADA is far from being usable on a daily basis. Wallet holders will have difficulty shopping with Cardano. The latter is not intended to replace another physical or virtual currency. Its creators offer, through this cybercoin, a means of investment and, above all, transfer accessible to all audiences.

We will have to wait some time for the system to be sufficiently developed to be a full-fledged payment method. The experts allow 3 years to finalize the second layer of software. Its scientific design carried out by professionals changes from the amateurism common in the field of cryptos.

For investors, the ADA value is one of the most recommended at the moment. That said, nothing predicts meteoric growth like that of Bitcoin. This oldest of 100% digital currencies was exchanged for a few cents of euros when it was launched in the 2000s. Currently, each unit costs €24,000 after a peak of USD 40,000 at the start of 2021. This fluctuation leads to many questions.

Transaction fees still affordable

The success of Cardano is mainly based on low transaction fees. Transparent, they are calculated according to the formula: – x + y × size.

X: unique constant estimated at 0.155 381 ADA,

Y: other constant of 0.000 043 946 ADA/byte

Size: the transaction volume in bytes.

This equation results in a blockchain-wide commission limitation of 0.155,381 ADA. An additional fee of 0.000 043 946 ADA per byte may be levied for each transaction. That said, prices may change as project development progresses. Users will therefore have to take the margin into account when they wish to transfer money in the form of ADA. Then, the value of the withdrawal in Euros, Dollars or another currency depends solely on the rate.

So, what is the outcome for this cryptocurrency full of potential?

The positive points :

• The two-tier Blockchain is an advantage.
• The adaptability of the program is ideal for professionals.
• Decentralization ensures independence from banks.
• Wallet holders enjoy unlimited financial freedom.
• The team and foundation behind this open source solution ensure its compliance.
• Cardano respects legislation and standards thanks to the contribution of regulators.

The negative points :

• Cardano is still in development, which betrays unpredictability.
• Anonymity remains impossible with the ADA. Dark Web actors will not follow suit.
• Purchases with Cardano tokens remain a utopia for the moment.
• The fluctuation of coins in general portends a possible crash of the entire ecosystem.