Cardano is a proof-of-stake blockchain system that addresses the scalability concerns in legacy blockchain platforms like Bitcoin and Ethereum. This is the third generation go-to blockchain that is generating a lot of hype in the market.
Since 2017 it has been generating many buzzes to make the crypto world more scalable and more sustainable. Yeah, we know it is kind of out of everyone’s radar when they think of the mainstream altcoins. But, here’s what you should know about it before you decide to make a purchase.
What Is Cardano?
Cardano Foundation, IOHK, and Emurgo are the three organizations that are overseeing the development of Cardano. They have decided this name it to pay tribute to Italian Mathematician Gerolamo Cardano. This blockchain platform started its journey back in 2015. The co-founder of BitShares, and one of the early developers of Ethereum, Charles Hoskinson, developed this altcoin.
The best feature of Cardano is its focus on independent research and well-informed, evidence-based development. Since the beginning of August 2021, the market share of Cardano has risen to 60%. So, it looks like Cardano’s aim to resolve the scalability and sustainability issues of the crypto world is finally reaching its climax.
What Are Some Features Of Cardano?
1: Energy Saver
Cardano is energy efficient, and it consumes 6-gigawatt hours. So, in simple words, Cardano uses as much energy as only 600 U.S. homes approximately, whereas Bitcoin consumes as much energy as the whole of Argentina. And, Argentina has about 45 million people, most remarkable example is the comparison.
2: Large Transactions Supportive
One of the leading cryptocurrency platforms, Bitcoin can support 5 transactions per second. On the other hand, Ethereum can process up to 15 transactions each second. If the transactions come with higher fees, they eventually become slower. However, Cardano can process up to 257 transactions per second. They are currently planning to integrate a new technology named Hydra, which will make Cardano support 1 million transactions/second.
3: Multiple Uses
Cardano is a potential project with multiple uses in a wide variety of industries. It authenticates pharmaceutical products to avoid the risk of counterfeit medications. People also use it in some developing countries to record people’s identities and judge their creditworthiness. It can also support farmers and merchants to track their supply chain reliably.
4: Research-Based Approach
Cardano is one of the first altcoin development projects that are peer-reviewed. But that does not mean that it is a slow and steady project. On the contrary, it has made some severe developments since its inception. Furthermore, since it uses the research-based approach, it detects the security issues beforehand. Thus, it ensures a more stable crypto platform.
5: Limited Availability
Cardano has the maximum supply of 45 million ADA. Currently, there is almost 32 million ADA in circulation. But, that does not mean that the price of Cardano will go up anytime sooner. However, if the demand increase, maybe the supply of Cardano will also increase.
How Will Cardano Resolve The Issues Of The Crypto World?
There are three main pillars in the architecture of Cardano, and they are interoperability, scalability, and sustainability. It aims to resolve the crypto world issues in the following ways;
- The Cardano Computational Layer and the Cardano Settlement Layer is unique blockchain technology. One of them handles the transactions, whereas the other powers the infrastructure.
- It uses the Ouroboros Consensus Protocol, where a group of slot leaders validates the transactions. The stakeholders who send the slot leaders get rewards for their contributions.
- The latest technology named Ouroboros Hydra introduced sharding to the architecture. It increases the scalability power of Cardano whenever it adds new nodes.
- Cardano also supports the KMZ Sidechains to communicate with other technologies. Furthermore, it also supports the platform when it tries to interact with other blockchains.
- The Hard Fork Combinator of Cardano allows for smooth transitions. Thus, it makes the aim of decentralizing the web even easier without an essential restart point.
How Will We Buy Cardano?
Crypto wallet is the most popular form to buy cryptocurrency. So, if you want to buy Cardano, you can follow a few steps;
If you want to buy Cardano, you must have access to a crypto exchange platform that offers Cardano. A few platforms like that are Binance, Coinbase, Kraken, eToro, SoFi.
Now, create your account there. But, if you already have an account on any of these platforms, you simply need to log in there.
Once you log into the account, it will ask to verify your identity. First, you have to input some basic information like your name, age, contact information, etc.
Now, you have to plan your investment strategy there. Some people make a big purchase at one go to see what happens. But, it depends on your risk tolerance ability on how much you would like to invest. You could also go with a long-term plan, like 2,3, or 5 years, to hold on to your Cardano.
Now, you make your purchase. Some of the most common payment methods are credit card, debit card, or PayPal. You can make the deposit directly from your bank account free of cost. Once you do that, your Cardano will be available in your account within a few seconds.
You can also buy the Cardano through Venmo, or PayPal. If you have a good idea of what it is, maybe it’s time you make your purchase decision. Of course, like the most powerful cryptocurrency platform, Cardano has also got its risks. But, what is life without a bit of risk, right? So, if you are satisfied with our explanation, make sure you read the article thoroughly once again. If you have any further queries regarding the credibility of Cardano, you can always ask them in the comment section.