cardano ada

What is Cardano (ADA) Coin & How Does It Work?

By Guarda Wallet | Guarda Wallet Blog | 1 Dec 2023


What Is Cardano?

Cardano remains a prominent player in the blockchain arena, representing the third generation of blockchain technology. As of 2023, ADA, its native cryptocurrency, has maintained a strong position in the crypto market. Cardano is distinguished by its foundation in academic research and a Proof-of-Stake protocol, offering a high-security level to its network.

Cardano History

Cardano was released four years ago, in 2017.

As Cardano Foundation states, the project was founded to improve scalability, interoperability, and sustainability of current blockchains by that time. By the project, we mean both Cardano blockchain and ADA coin.

The currency has finished its first development stage. The second and the third stages are now in progress. There are five stages in the development plan. After they are delivered, the whole new project evolution paradigm is going to take place. This paradigm is all about community-driven decisions.

The concept is that ADA stakers decide on the coin’s future. To be honest, we have not seen anything similar in any project of this scale. Currently, Cardano has completed significant stages of its development roadmap, focusing on continuous improvement and a community-driven approach to decision-making.

What does Cardano HardFork mean?

The next Cardano Hardfork will introduce smart contracts to the ecosystem. The hardfork is called Alonzo. It was announced this August and is going to take place on September 12, 2021.

Smart contract languages like Plutus (native), Marlowe (for finance), and Glow (for DApps) will soon be integrated with the Cardano stack.

How Cardano Works

Cardano is a third-generation blockchain, building upon the lessons from its predecessors. It aims to enhance scalability, reduce transaction costs, and increase transaction speeds. While rumors of fourth-generation blockchain projects exist, Cardano remains at the forefront of current blockchain technology.

ADA vs BTC: Is Cardano Better Than Bitcoin?

It depends on what aspect we are talking about. At some points, ADA takes over Bitcoin, but there are also situations when BTC might suit you more. Let’s take a closer look.

BTC pros: adoption state, volatility.

ADA pros: transaction speed, transaction fee, smart contract support in the future.

It is a good question to decide which coin to use. Sometimes using both of them is the answer. But there is no question where to store them. The answer is always Guarda Wallet (https://guarda.com/).

Where Can I Buy Cardano?

You can use any major exchange or try Guarda Wallet to buy Cardano crypto. See the instructions below. It is easier to start staking ADA when you buy Cardano right in Guarda — fewer clicks and a shorter time period between buying and staking.

How to Buy ADA Using Guarda?

Follow these steps to buy ADA with Guarda:

  • Log in or register in the wallet
  • Click on “Buy” in the top menu
  • Find Cardano in the list of currencies.
  • Type the amount of fiat you want to spend on ADA
  • In the opened window type in your card details and proceed with the purchase

Where to Store ADA?

Like any other crypto, Cardano can be stored in few ways:

  • Cold (offline) wallet
  • Hot (online) wallet

The difference is that cold wallets are not connected to the internet, hot wallets are connected to the Internet. That is why cold wallets are thought to be more secure though less comfortable to use. Hot wallets are easier to use when you think about buying Cardano crypto. If you decide to store crypto with Guarda, you have plenty of options to choose from:

Can I stake Cardano?

Yes, this is why it has a Proof-of-Stake mechanism under the hood. Try staking ADA with Guarda The details:

  • Start from just 10 ADA
  • Manually claim rewards
  • You do not pay validator costs
  • 100% uptime
  • Your coins are not locked
  • You get a reward every five days

What is a Cardano Staking Pool?

As Cardano Foundation calls it, it is a Cardano network node with a public address that other users can delegate to, and receive rewards. Nodes are what make cryptocurrency so efficient and secure. More nodes - faster transactions. You can delegate coins to stake pools if you want to take part in the project and get rewards.

Staking helps all PoS coins stay effective. Participation in staking is always volunteer. Remember, that staking is one of a few ways to earn ADA as long as it can not be mined.

Is Staking Cardano Worth It?

It is for you to decide because Guarda cannot give you any financial advice. Right now you can stake ADA on our own validator and earn around +5% APY.

How to Mine Cardano?

It is not possible by design. As a Proof-of-Stake project, ADA can only be bought, transferred, or staked. You can do all of it with Guarda on any platform. Read more about staking above.

ADA Future (Roadmap)

The Cardano Foundation's roadmap consists of several eras, each focusing on different development aspects: Byron (foundation), Shelley (decentralization), Goguen (smart contracts), Basho (scaling), and Voltaire (governance). As of 2023, the project has seen significant progress in these areas, with ongoing developments in the latter stages.

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Guarda is a custody-free multi-platform cryptocurrency wallet with a user-friendly interface designed to store, buy, stake, and exchange crypto assets. https://guarda.com


Guarda Wallet Blog
Guarda Wallet Blog

Guarda is a custody-free multi-platform cryptocurrency wallet with a user-friendly interface designed to store, buy, stake, and exchange crypto assets. https://guarda.com

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