What is Cardano (ADA)?

Cardano (ADA) is a native token – The main currency in a blockchain often used to pay the network, the so-called gas fees and often used to invest in the blockchain’s philosophy, technical edge, or the underlying company it represents.

Ouroboros

The blockchain protocol that handles all payments decentralized (without a third party)  is called “Ouroboros”. Currently, Cardano is one of the most popular cryptocurrencies out there, even though the whitepaper was only released in 2017, it has already established a solid position in the top 10 cryptocurrencies.

Some of the reasons are its active development, science-based approach, and peer-reviewing. There was an academic study for more than 4 years, including topics like blockchain technology, economics, and cryptography, before its blockchain was programmed.

The current position of Cardano (ADA)

So Cardano, or its ticker: “ADA”, is one of the most popular cryptos out there. With a market cap of almost 70B and its rising popularity in Africa, it is hard to see a future without this currency.

There are a little under 32,000,000,00 ADA tokens in circulation and there is a total supply of ~45,000,000,000. Cardano is research-based and already has a lot of real-life use cases and its current price, at the time of writing, fluctuates around the $2,20 mark.

For a business or a country to adopt a blockchain solution, there should be ways to do financial audits. This is built into the system with the peer review functionalities. Combined with its transparency, robustness, and security, Cardano is truly unique.

As one of the frontrunners of second-generation cryptocurrencies, it is now adopted by the country of Georgia, the UN, and Wyoming education.

With normal-looking supply and values, it is easy to read, like fiat-currencies. Opposed to calculating the price of bread in Bitcoin, which might look something like “0.0000016 BTC”.

How to buy Cardano

It can be bought easily at the more popular centralized exchanges, like binance.com and coinbase.com. To do so, Cardano can be bought by using a credit card, a SEPA-transfer, or by using another cryptocurrency like Bitcoin, Ethereum, or Tether USD. On the exchanges you can search for “what you won’t pay”/”what you want to buy”. This is what makes it possible for the exchanges to provide liquidity for a lot of orders in multiple currencies, all at once.

Staking ADA

Cardano uses a Proof-Of-Stake consensus mechanism. This means that after you have bought (a very large amount of) the ADA token, it can be staked and gives the right to check and add new blocks of transactions. By participating in the process you will be rewarded by the network. But beware, when tokens are staked they cannot be traded for a set amount of time. Staking (or yield farming) is also used to help exchanges increase their liquidity. Staking then happens in a staking pool and participants are rewarded, sometimes up to 25% per year. For this to happen, the person in question must also stake a lot. The rewards are almost always calculated in a way so the biggest liquidity providers get the biggest chunks of the reward.

How is Cardano used today

Cardano is already used for making payments, hosting decentralized apps, and creating & trading NFT’s — non-fungible tokens. Most often this is digital art or an official document. This is because there can only be 1 real owner on the blockchain. Most people however buy ADA because they think the price might go up, and do so by using a popular exchange.

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