What Is Cardano (ADA)? – Forbes Advisor INDIA

Cardano is a blockchain platform designed to process transactions using a dedicated cryptocurrency called ADA.

The Cardano platform can handle all kinds of transactions, but the real goal is to become the “Internet of Blockchains,” creating an ecosystem that allows seamless interchangeability between different blockchains.

Let’s examine how Cardano (ADA) stacks against the other major cryptocurrency players.

What Is Cardano?

Cardano is a blockchain, and ADA is the coin that powers the Cardano network. In some ways, this is similar to ether and the Ethereum blockchain.

Think of Bitcoin as Crypto 1.0. It’s essentially digital gold, but the system has scalability issues. Then there’s Ethereum, often referred to as Crypto 2.0.

Cardano, launched in 2017, is Crypto 3.0, which aims to improve upon the functionality that Ethereum was initially missing.

Charles Hoskinson founded Cardano and is a co-founder of Ethereum. In 2014, he disputed with co-founder Vitalik Buterin whether the Ethereum project should be commercial, which caused him to fall out with the Ethereum team.

Hoskinson launched Cardano as a more scalable, interoperable, and sustainable blockchain, intending to improve upon Bitcoin and Ethereum.

“Referred to by supporters as an ‘Ethereum killer,’ Cardano’s ongoing development is supported by the Cardano Foundation and the IOHK research institute, which engage in [resources and development] and peer review via a formal development model,” said Henrik Gebbing, co-CEO and co-founder of Finoa, a digital asset custodian.

One major criticism of Bitcoin and other popular cryptocurrencies is that their blockchain networks, based on proof-of-work consensus mechanisms, waste vast amounts of energy. Cardano uses a proof-of-stake consensus mechanism, offering a more sustainable and scalable blockchain.

What Is ADA?

ADA is the cryptocurrency for the Cardano platform. Its coin is named after Ada Lovelace, a 19th-century mathematician who is known as the first computer programmer.

People use ADA tokens to pay transaction fees for using the platform. It’s also given out to the validators as a reward for running the proof of stake system.

How Does Cardano Work?

With a blockchain network, a way to verify transactions must be verified to ensure people don’t spend the same tokens twice. Given the decentralization, no central authority like a bank is working to handle the job.

Based on proof of work consensus mechanisms, Bitcoin and Ethereum 1.0 miners run computers to solve complex mathematical equations and add new data blocks to the blockchain, receiving crypto in exchange for their work. This is time-consuming and uses up large amounts of electricity.

Cardano uses staking, a process where network participants deposit set amounts of crypto to earn the right to participate in blockchain operations.

“The [Cardano] protocol is designed to minimize energy expenditure during the block production process,” said Daniel Hill, president of Hill Wealth Strategies.

How to Buy Cardano

You do not buy Cardano itself but rather its altcoin, ADA. To buy ADA, you can sign up for an account with one of the significant cryptocurrency exchanges. You can then store ADA on the platform or in a crypto wallet.

Detailed Guide: How to Buy Cardano

Where to Buy Cardano

As one of the most popular cryptocurrencies, ADA can be bought for the Cardano network from most top cryptocurrency exchanges. Binance, Coinbase, Gemini, and Kraken are a few of the major players that sell ADA. To help you find a good fit, check out this review and compare the best crypto exchanges.