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Everything about Cardano digital currency and ADA tokens

By Ana_2020 | digitalnews | 16 Oct 2020


The digital currency industry is always a platform for designing and implementing new and exciting projects, one of which is called Cardano. We have already learned about Bitcoin, which is a financial system based on Chinese blockchain technology. Then we got to know Ethereum, which supports the smart contract system in the Chinese blockchain platform. Now consider a system that covers both of these more efficiently and effectively. In this tutorial, you will be accompanied by Signal website to learn more about Cardano digital currency and its ADA tokens.

 

Introducing Cardano digital currency

The Cardano project was launched in 2015. Its developer is the IOHK (Input Output Hong Kong), which is run by Charles Haskinson, co-founder of Ethereum and BitShares. The project is named after mathematician Gerolamo Cardano. He lived in the 16th century.

Cardano is a decentralized system based on China Blockchain technology powered by ADA tokens. The ADA is a digital currency used on the Cardano platform. Like the Ethereum, Cardano is a Smart Contracts system and can be used to design and build decentralized applications (Dapps), except that its scalability and security are provided by a multi-layered structure. This means that Cardano uses different layers for different purposes; It has a layer for ADA financial transactions and exchanges and a separate layer for executing smart contracts!

Cardano is the first digital currency designed with scientific philosophy and based on the research of scientists and peer review in this field, and this can guarantee its security at different times. Cardano's goal is to create a porcelain block that performs better than older blockchains such as Ethereum. This means that it can cover more transactions, with higher speeds and lower costs.

 

Charles Haskinson believes:

Cardano Blockchain is the third generation, and Bitcoin and Ethereum are the first generation and second generation of China Blockchain technology, respectively.

 

So instead of copying previous blockchain code, IOHK uniquely designed its own blockchain.

The platform uses a proprietary programming language called Haskell, which, unlike Ethereum, is immune to possible errors. Given the uncertain future and complexity of China's blockchain-based systems, the flexibility of the project over time is crucial. It is almost impossible to predict the conditions of a project in the coming months or years; Thus, a powerful programming language such as Haskell with a definite limit of programming error almost prevents the creation of aimless programs and systems.

Most people think that Cardano and ADA are the same, but in reality there is a difference between them. Cardano is a Chinese blockchain that allows people to send and receive funds, and the ADA token is the name of the network's native digital currency.

Cardano, like most other digital currencies, has a decentralized structure; This means that no central or governmental organization or institution oversees it and its smart transactions and contracts are credited by individuals.

It should be noted that the Cardano team managed to raise $ 63 million in initial capital in its initial public offering, which has now reached $ 33 billion.

 

Ethereum (ETH) and Cardano (ADA) Difference

As mentioned, the Cardano blockchain allows people to build smart contracts and is one of Ethereum's main competitors in this regard. A smart contract allows two or more people to enter into an agreement and structure without the need for an intermediary, meaning that the initial conditions are defined and designed and then everything is done automatically. In fact, they are computer programs that act like a contract and are registered on the Chinese blockchain.

Both platforms were designed to design decentralized applications and smart contracts, but there are fundamental differences, including:

Consensus mechanism
Ethereum: The Ethereum consensus mechanism is currently based on the Proof of Work (PoW) algorithm. However, in the near future, Ethereum intends to use the Proof of Stocks (PoS) algorithm.
Cardano: uses a protocol based on a stock proof algorithm called Oroborus

Programming language
Ethereum: Created using its proprietary programming language called Solidity. The Ethereum team created the language to design smart contracts and use the Ethereum virtual machine.
Cardano: Cardano created its protocol using the Haskell and Plutus programming languages.
Structure
Ethereum: It currently has one layer and a second layer is being created to solve the scalability problem.
Cardano: Consists of two layers that separate computing operations from distributed general ledger accounts.
Finally

 

History of Cardano
2015 - Charles Haskinson and Jeremy Wood establish the IOHK Foundation. The IOHK is a research and development organization based on peer-to-peer innovations and China Blockchain technology designed to provide financial services.

2017 - Charles Haskinson, co-founder of Ethereum, designs the third-generation digital currency Cardano.

2017 - In the same year, the IOHK signed a contract with Cardano to build, design and maintain the Cardano system until 2020. In the same year, EMURGO, a company that develops, supports and assists businesses based on Chinese blockchain technology, entered into a contract with Cardano. Most of Cardano's capital comes from a five-year contract with EMURGO.

September 2017 - Charles Haskinson designs and presents Cardano to the public.

Who Invented Cardano?

 

Charles Hoskinson

As mentioned, Charles Haskinson, one of the former founders of Ethereum, designed and presented Cardano to the public in 2017 with the help of Jeremy Wood, the founder of the Cardano Foundation, and in collaboration with the IOHK and Amurgo.

There are currently three full-time companies developing and strengthening Cardano: the Cardano Foundation and the IOHK and EMURGO companies.

How does Cardano work?

Cardano is developed in two layers that separate the general ledger of values ​​within accounts from the method of transferring value between other accounts. This separation makes the smart contracts on the platform more flexible. Companies can use this separation to customize contracts as much as possible.

Cardano Payment Layer (CSL)
CSL is the first layer of the platform and acts as a general office alignment. This layer, which was created with the aim of improving the bitcoin protocol in the field of scalability, creates new blocks and confirms transactions using the stock proof algorithm.

In fact, this layer allows users to send and receive ADA coins, as when Ethereum users exchange their digital assets with each other.

Cardano Computing Layer (CCL)
CCL is the second layer of the Cardano platform, which contains information on how transactions are performed. This layer is still under development and allows users to create smart contracts.

Because the calculation layer is separate from the payment layer, CCL users can create different rules when evaluating transactions. For example, you can create a general ledger that does not select any transactions that do not contain real estate information. This will increase the facilities in the Chinese block.

How is cardano extracted?
As mentioned, Cardano uses the stock proof certificate algorithm instead of the proof of work certificate. As a user of the stock proof algorithm, Cardano is not dependent on mining. In a stock proof certificate, the user is randomly selected based on the amount of capital, not the amount of work he or she does to solve complex problems.

In proof of stock, miners extract from the same currency they own. Proof of shares is a different way of validating transactions using collective agreement. Its purpose is to prove the same thing and how to do it is completely different. Unlike the proof-of-work algorithm, in which miners are rewarded by solving mathematical problems, a block is definitely chosen to prove the miner's stock, and everyone contributes to the maintenance of the network in proportion to their wealth.

In Cardano, time is divided into different periods (Epoch). These time periods are divided into smaller parts called slots. Slots are short time periods of up to 20 seconds. Each slot has a leader that only he can create unique blocks within his own slot. Transaction fees are collected in a virtual pool in a specific time period and distributed among slot leaders.

Not everyone involved in the network is involved in choosing the next slot leader. To do this, people must have a minimum defined capital in the network. If these conditions are met, the person will be selected as the selector in the next time period. The selection of slot leaders is done by a distributed method by creating a random number. The inputs to this system are encrypted seeds created by participants.

Advantages and disadvantages of Cardano
Advantages
It has a very strong development team. The founder of Cardano has already played an important role in the success of huge projects such as Atrium and Beat Shears.
It is the first porcelain block to have a two-layer structure.
There is no scalability limit and more transactions can be done as the number of users increases.
ADA Digital Currency provides fast and low cost transactions.
The Cardano consensus mechanism is fairer and more user-friendly than older blockchains.

 

Disadvantages
Many of Cardano's features remain in theory and are still under development.
Other blockchains such as Ripple, Stellar and Neo have been able to process more than 1000 transactions per second.
Cardano's maximum scalability is currently 257 transactions per second.
Cardano's official digital wallet has many major problems.

Cardano prices in recent years

With the increase in demand in early 2018, the price of this digital currency reached its highest value to date, ie $ 1,180. At the time of writing, the ADA is priced at $ 0.049073 per unit.

According to the Google Trends chart, it can be seen that Cardano's popularity peaked in late 2017 and early 2018, which confirms the increase in prices in the high price chart in the same months.

Cardano storage method
One of the options for ADA storage is to use Cardano's official wallet called "Daedalus". This wallet can be used on Windows, Mac and Linux operating systems. The mobile software of this digital wallet will also be released soon.

Other options for secure storage of Cardano are Ledger Nano S and Trezor hardware wallets. It should also be noted that Atomic and Yoroi wallets also support Cardano. To get acquainted with the best Cardano wallets, refer to the article published on Signal website.

Conclusion
Cardano is a project that has solved many of the problems of the digital currency world. After hacking the DAO on the Ethereum network, it is very important that Cardano's main focus is on carefully reviewing the code, thereby providing network security. As a result, Cardano is considered a secure network with a two-tier structure that simultaneously covers the features of Bitcoin and Ethereum.

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Ana_2020
Ana_2020

Here I want to keep you up to date with the latest news in the world of digital currencies. It has been about 5 years since I became acquainted with the world of blockchain and digital currencies like Bitcoin I hope the content is useful for you


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digitalnews

Here I want to keep you up to date with the latest news in the world of digital currencies.

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