What is Ada Cardano?
ADA, run on the Cardano blockchain, is one of the biggest cryptocurrencies outside of Ethereum and Bitcoin. In fact, ADA is frequently seen in the list of top three crypto market caps behind the two major players.
What makes ADA and Cardano so special and beloved among the community? Read on to find out!
What Is Cardano & ADA?
Cardano is a flexible, sustainable, and scalable blockchain for smart contracts and decentralized applications designed to be the next evolution of Ethereum. Cardano’s founder, blockchain pioneer Charles Hoskinson, aims for Cardano to be a third-generation blockchain, which means it builds on the foundations laid by Bitcoin (first generation) and Ethereum (second generation).
Cardano’s blockchain technology features a proof-of-stake (POS) mechanism called the Ouroboros, which sets it apart from the proof-of-work (POW) system utilized by Ethereum and Bitcoin. Ouroboros is based on research by computer scientists from many world-class universities, creating a blockchain platform that’s both scalable and energy-efficient.
Cardano’s native cryptocurrency is called ADA. This crypto token can be used to make payments, provide financial services, for staking, and as part of your crypto investments. The name Cardano itself comes from Italian mathematician Gerolamo Cardano, while ADA is named after 19th-century mathematician Ada Lovelace.
In addition to the aforementioned uses of ADA, the Cardano Foundation also aims for the ADA token to become a governance token in the future. This means that ADA can be used by holders to vote on changes to the Cardano blockchain and platform.
What Makes Cardano & ADA So Unique?
So what sets apart Cardano from other smart contract platforms like Bitcoin and Ethereum? Here is a breakdown of the wide range of features and benefits that this scalable blockchain offers:
Environmentally Sustainable Blockchain Protocol
The Ouroboros proof-of-stake protocol is an energy-efficient protocol alternative that combines developments in various sciences like mathematics, economics, and even psychology.
Unlike other POW blockchains that typically consume lots of energy, Ouroboros is a sustainable alternative that is four million times more energy-efficient than Bitcoin. This means it consumes a lot less energy, which leads to the use of fewer fossil fuels and other non-renewable resources.
Cardano is a community-focused blockchain that promotes true democracy. Token holders can decide the future of Cardano as well as how it uses its available funds. Token holders are allowed to create Cardano Improvement Proposals (CIPs) and Funding Proposals (FPs), where they can propose and suggest new developments and funding opportunities for the blockchain.
Once these proposals are made, the community can vote on whether or not Cardano should execute them. This way, everyone who holds Cardano in their digital wallets has the power to influence where the blockchain goes next.
Lightning-Fast Transactions And Low Gas Fees
Cardano’s extreme scalability means that it processes transactions at blinding speeds. Cardano supports over 250 transactions per second, far beyond Ethereum’s 15 transactions per-second capability. Its PoS model also means that transaction fees are incredibly cheap – the average cost of a Cardano transaction is 0.1 ADA, which converts to just a couple of cents.
Peer-Reviewed Research And Development
Charles Hoskinson and the Cardano team take development very seriously. The Cardano blockchain platform undergoes frequent peer review to ensure unparalleled security in its protocol.
Moreover, Cardano and ADA are one of the few crypto projects that have deep roots in academic research. In fact, the Cardano team employs many academics to write papers on what they think should be the next step in improving Cardano.
In addition to giving Cardano extra legitimacy, this academic rigor also helps people who want to learn more about the blockchain.
Cardano And NFTs
As with many other blockchains like Ethereum and Solana, Cardano also supports NFTs. While the NFT market on Cardano still isn’t as prominent as Ethereum, the blockchain network already has several marketplaces running, like CNFT.IO and AdaSwap.
Cardano NFTs are also starting to get love from celebrities. One of the most recent examples is Snoop Dogg, who is planning to release new songs as NFTs on the Cardano blockchain. Similar to other blockchains, celebrity endorsement and participation tend to bring more legitimacy and eyes to the blockchain in question.
Is ADA A Good Investment?
By now, you’re probably asking, is investing in Cardano’s native token a good idea? While it’s still behind ETH and BTC in prominence, there are some factors that make investing in ADA a good idea:
- Partnerships with various governments, companies, and institutions, like the Ethiopian government, New Balance, and the University of Illinois
- Energy-efficient proof-of-stake system
- One of the most actively-developed blockchain projects available today
Where Can You Buy ADA?
Like many other tokens, ADA can be bought anywhere you can buy cryptocurrency. Some crypto exchanges where you can buy ADA include:
As one of the most ambitious blockchain projects in the crypto space, there are many reasons to buy into Cardano and ADA. Some of those reasons include a strong development team, low gas fees, and growing NFT support.
Looking to start your NFT journey on the Cardano blockchain? We’re here to help! Visit Tokenfy today to see how our NFT launchpad services can get your project off the ground!
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