Designed to offer value and have financial support thanks to the use of a chain of data blocks, cryptocurrencies are gaining more relevance every day like Cardano. There are people who believe that these coins will soon become the gold or money of the future.
With so many options on the market, it is very important to evaluate each of them in order to know them thoroughly and better understand how they work. That is why here we will talk about Cardano, a cryptocurrency that stands out for being frequently in the top of the most capitalized virtual currencies.
✨What is Cardano? ✨
SIf we can say that Cardano is a cryptocurrency, in reality this is a unique virtual currency. And it is that it is a Blockchain platform and protocol launched as a cryptocurrency to the market. This was done by Exchange Bittrex, a Blockchain technology provider.
Born as a project of a group of Japanese investors in 2015, Cardano is considered one of the most realistic attempts to find and create the most advanced Blockchain of all. That is why many experts classify this coin as a research-focused cryptocurrency.
In addition to having an advanced blockchain technology, Cardano also has a programming language called Haskell, which helped to completely rewrite the code. This in order to offer much greater certainty to the user and thus guarantee its safe and hacker-free operation.
Another of the most striking features of Cardano is that this coin is divided between three companies: Cardano-Foundation, the IOHK companies and Emurgo. Each one is in charge of contributing much greater financial stability and security to the project. In addition, this offers a larger reach with better capacity and also future innovations.
✨Differences between Bitcoin and Cardano✨
- Architecture: One of the most striking features in Cardano's construction is found in its multi-layered architecture. This offers much greater security when making transactions. Also, the blockchain allows for faster code verification.
- Production: Another point to take into account is the fact that Cardano is estimated to generate many more cryptocurrencies or coins than other currencies. According to user estimates, about 45 billion ADAs will be produced vs the 21 million Bitcoin currently in existence.
- Operations: Cardano developers are currently working on the development of a platform for operations of cryptocurrency protocols and the financial community. This with the goal of making working and negotiating with the ADA much easier, this without the need for fiat money in the process.
- More accessible operating costs: In addition, Cardano uses Epochs (Time Divisions) in its Proof of Stake system, which stand out for being much cheaper. If we compare them with the famous Ethereum or Bitcoin gas, the cost is much lower which makes the operations more accessible.
As with a large number of cryptocurrencies, Cardano has a Blockchain of another currency as a base. And it is that in its development the Bitcoin Blockchain was used as a basis for the creation of the Ada Blockchain.
Of course, here we can find significant improvements such as an evolution of the Blockchain algorithm, as well as the inclusion of a system with much greater capacity. The ADA architecture is thought of in multiple layers, each with a specific function that makes the operation of the system faster.
The first layer, for example, houses the ADA Coins, in another layer the smart contracts are executed and in another, computational functions are performed. This allows the same structure of the Blockchain to be quickly updated, as well as to repair errors. All without affecting the operation and value of the ADA coins.
Although for now we have a couple of layers, one focused on computational processes and others on currencies, it is hoped that this may change. And if the Cardano developers have one thing in mind, it is that the algorithm and the blockchain are constantly evolving.
✨Is it possible to mine ADA Coins? ✨
This is one of the most common questions that we can find and the answer is that yes, it can be mined, although the process is changed. Here a unique mining algorithm called Ouroboros is used which is based on the Proof of Stake system replacing the Proof of Work.
Thus, the miner is chosen at random to solve the corresponding mathematical puzzle. By not using the entire network but only one miner, the operating cost and energy consumption are reduced. This means that the necessary equipment does not have to be so demanding either.
✨How can I have Cardano cryptocurrencies? ✨
There are two options to have your own Coin ADA coins. The first option is to compare Cardano coins, although this option is limited only to some exchange houses, since not all have ADA. The second option is to buy them from an individual, although this can be very expensive.
The second option to get a Cardano cryptocurrency is to mine them. Mining can be simple thanks to the low cost of operations that its algorithm can give you, as well as the lower energy consumption. Of course, you must take into account that the selection of the miner can be random.
✨Is it worth gambling? ✨
One of the things you should know is that there are a lot of expectations around Cardano. And the experts agree that the project can be a great success. Although we must not forget that this is a project in development.
Thanks to its innovative technology and low operating and mining cost, Cardano is considered one of the 10 most valued digital currencies. That is why Cardano will undoubtedly become one of the most important cryptocurrency options for the following years.