I think I have found a true gem.
Cardano is a cryptocurrency that was launched in 2017. It's development team had been working on it since 2015, and they felt that the project was ready 2 years later.
Cardano claimed(and still claims) to be a third generation cryptocurrency and hence tries to fix the problems of first and second generation cryptocurrencies. These problems are the obvious ones: Scalability, sustainability and interoperability.
One of the major problems of cryptocurrencies today is scalability, and can ADA fix this major sore point? Let's find out.
I will break this post into:
- A brief history of Cardano
- The difference between ADA and Cardano
- How Cardano plans to fix the problems I stated above.
- Where to buy and trade Cardano safely
- Should you hodl cardano?
- The future of Cardano.
A BRIEF HISTORY OF CARDANO
Cardano is a decentralised public Blockchain project that was launched in 2017. It was created by Charles Hoskinson and Jeremy Woods, two of whom are some of the earliest and best minds in cryptocurrency.
Very surprisingly, the idea of Cardano was looked at and approved by experts before the building of the cryptocurrency commenced.
Cardano has a foundation layer(very similar to Bitcoin) on which it processes transactions. It also has a smart-contract like layer that, you guessed it, runs smart contracts.
So basically, Cardano is trying to be both Bitcoin and Ethereum at the same time, while effectively trying to fix the problems that revolve around those two.
Cardano ranked Bitcoin as a 1st generation cryptocurrency used to process payments, and ranked Ethereum as a second generation cryptocurrency used to execute smart contracts. They also ranked themselves as a third generation cryptocurrency capable of doing both, while being able to scale effectively.
THE DIFFERENCE BETWEEN CARDANO AND ADA
In all honesty, I didn't see this as a legitimate sub topic. But many people mix it up, so I decided to out it here.
Cardano is the Blockchain that houses the cryptocurrency ADA. So Cardano is to ADA as Blockchain is to Bitcoin.
Just a quick explanation so you're not confused throughout the post.
HOW CARDANO PLANS TO FIX THE PROBLEMS I STATED ABOVE
Remember the three major problems with crypto that I stated above?
Here are the ways that Cardano plans to fix them.
This problem is based on the fact that many, if not all cryptocurrencies do not work cohesively together. They also have no support from banks or any monetary foundations.
In order to fix the problem of not working cohesively, Cardano wishes to become the internet of Blockchains. This means that it will be able to understand and interact with all the happenings on other blockchain platforms.
To allow banks to be interested in the cryptocurrency, they have added something like an ID to every transaction that happens on the blockchain.
This is the major thorn in the flesh of Bitcoin, as well as other cryptocurrencies.
This problem includes the transaction per second number, as well as network bandwidth and storage of data.
To fix the transaction per second problem, Cardano makes use of Ouroboros Praos, which is a new Proof of Stake consensus mechanism.
This simply means that instead of mining your cardano, you can simply engage in "staking" your ADA to be used to perform tasks on the platform.
The issue of network bandwidth was solved by the use of RINA(Recursive InterNetwork Architecture). RINA is able to split the network into subnetworks that can still communicate with the other networks if need be, while maintaining a very stable Transaction per second speed. Amazing stuff.
The thing is, all crypto projects require finding to not die off. Cardano plans on adding a portion of fees charged from transactions to a treasury that will be used for further development of the cryptocurrency and its Blockchain.
WHERE TO BUY AND TRADE CARDANO SAFELY.
So you have probably read all that. And you're probably thinking that Cardano is for you.
So where do you buy it? And how do you store it safely?
PLACES TO BUY, SELL AND TRADE CARDANO SAFELY
If you live in the US, or any of Coinbase's supported countries, you can simply head on over to Coinbase.com, create your account and exchange some of your local currency for ADA.
If you don't live in the US, or your country isn't supported by Coinbase, here are a few options you can use, their integrated payment systems and the fees you'd likely be paying.
- Binance: Simplex, 6% fee on fiat payment.
- Changelly: Simplex,6-10% fee on fiat payment.
- Bitfinex: 3% fee on fist payment.
- Cex.io: Cex Integrated payment system, 4-7% on fiat payments, depending on number of transactions coming in at a time.
The beautiful thing is that you can also trade ADA on all those exchanges I mentioned.
(PS: I have included my affiliate links into those exchange links. You could use them to get some percentage off fees, at no cost to you. If you're not into that, please skip them completely.
WHERE CAN YOU STORE CARDANO SAFELY?
Cardano can be stored safely both offline and online.
To store it online, the safest wallets are:
- Coinbase wallet
- Trust Wallet
To store it offline, the safest wallets are:
- Ledger Nano S
SHOULD YOU HODL CARDANO?
This is a coin that aims(and succeeds) at solving problems that are very common in the crypto industry. These problems are part of the things that cause crypto to suffer lack of mass adoption.
You could read my post on why crypto doesn't have mass adoption here.
Cardano hasn't peaked yet. It has only been online (I mean in existence) for a little over 2 years at this point.
Should you be able to get it at this price, which is absolutely a steal, and hold it for a few years, you should come out good.
(Basically, the law of Economics says that you should be able to do this for basically anything that has value, but I digress)
I believe that Cardano is yet to achieve intrinsic value to may. Most people just want to trade it. But I also believe that a time and place will present itself, and that the utility of Cardano will be shown.
So yes, you should hold it.
THE FUTURE OF CARDANO
Back when Cardano was launched on Bittrex, it's trading volume peaked 10000BTC across many exchanges. That is a lot of money for something that is so lowly priced.
It means that many people believe in the cryptocurrency, and hope for an increase in value soon.
We cannot also deny the fact that it solves three of crypto's worst and most daunting problems without too much effort. It is the bitcoin that can process many transactions in a second, and the ethereum that can allow you to run dapps and execute smart contracts.
It's transaction tech also allows it to stay ahead of cryptocurrencies like Ripple, and this gives it utility and value for a long time.
Thank you for reading. I hope you enjoyed the post.
Disclaimer: I have substantial holdings of this cryptocurrency as I write this post.