Cardano (ADA) Cryptocurrency Blog - Botsfolio Insights

ADA (Cardano) is a third-generation Proof-of-Stake (PoS), progressively decentralized blockchain platform. Its native token is fondly called ADA, after Ada Lovelace, the 19th-century mathematician credited as the first computer programmer.

ADA (Cardano) is the brainchild of Charles Hoskinson, formerly co-founder of Ethereum. Cardano implements an Ouroboros PoS algorithm, constructed using the functional programming language Haskell, commonly used in the banking and defense sectors.

As a characteristic decentralization feature every ADA token holder gets a stake in the Cardano blockchain network. They may opt to delegate ADA stored in wallets to the Cardano stake pool and earn rewards for their participation in helping to run the network successfully.

ADA supports a variety of applications and services on the Cardano platform, including Daedalus full-node desktop wallet. Developers can also utilize the Cardano blockchain for building smart contract programs.

The future roadmap of Cardano will focus on building a decentralized stake pool operator (SPO) ecosystem, giving the power to validate blocks and transactions to stake pool operators while enhancing the flow of information between nodes and managing connections using Peer-to-Peer (P2P) governor integration.

Cardano offers crypto currency optimizations, such as secure smart contract with negligible transaction fees. based on scientific research and formal verification, a process by which its code is verified mathematically. IOHK, the company that has developed Cardano, has published more than 90 academic papers outlining its technology. The Cardano team also publishes this research through its official website .

ADA (Cardano) Development Cycle

• September 2017 – Byron era when Cardano launched, supporting only ADA token transactions.
• July 2020 – Shelley era when Cardano introduced multi-assets, ADA staking, and up to 100 times increased decentralization.
• August 2021 – Goguen era when Cardano introduced smart contract integration.
• Upcoming in 2022 – Basho era when Cardano is to improve scaling, and integrate on-chain governance.

How does ADA (Cardano) work?

The much-advertised primary use case of Cardano is to facilitate transactions in its native cryptocurrency token, ADA, and to provide a blockchain platform to develop and host decentralized, smart contract based, secure and scalable applications.

The ADA (Cardano) Blockchain

The Cardano blockchain has two component layers:

• Cardano Settlement Layer (CSL) – Used to transfer ADA between accounts and to record transactions.
• Cardano Computation Layer (CCL) – Contains the smart contract logic that developers can leverage to programmatically move funds.

Furthermore, machines participating in the Cardano platform can join as one of three nodes.

• mCore nodes – Stake ADA tokens and participate in blockchain governance
• Relay nodes – Send data between mCore nodes and the public internet
• Edge nodes – Create cryptocurrency transactions.

What is Ouroboros?

Ouroboros is the signature proof-of-stake (PoS) consensus algorithm used by machines participating on the Cardano platform to secure the network, validate transactions and earn newly minted ADA. Ouroboros divides time into epochs and slots, where epochs are the overarching time frames, and slots are 20-second increments within epochs. Within each slot, a slot leader is randomly chosen and is responsible for choosing the blocks that get added to the blockchain. Only mCore nodes can be elected to become slot leaders.

Ouroboros defines two types of blocks that get added to the blockchain:

• Genesis blocks: Including the list of all the slot leaders associated with the epoch and contain a series of main blocks
• Main blocks: Containing all transaction information, proposals for software updates and the list of votes for these updates.

Once the epoch has ended, the previous slot leaders elect the slot leaders of the next epoch. The votes happen via a mechanism where each slot leader performs a “coin tossing act,” which the Cardano team says increases the randomness by which new slot leaders are picked.

Why use ADA (Cardano)?

• Cardano project is based on its scientific philosophy and strong commitment to peer-reviewed academic research.
• The Cardano blockchain is ideal for developers to develop and launch decentralized applications.
• Built from scratch as a PoS blockchain, secure and stable smart contract based resistant to hacking and exploit incidences in the form of flash loan attacks.
• Transaction fee is 21 times lesser than Ethereum’s while providing the same capability and great speed (maximum of 40 million transactions per day).
• Eco-friendly because the transaction count doesn’t increase the number of nodes (computers) needed to run the blockchain’s network.
• Cardano’s two-way ERC-20 token converter makes it ideal for the DeFi ecosystem of yield farming, lending, and borrowing. Any dApp, from even BSC, Polkadot, or Ethereum, can integrate the converter to make the blockchain space interoperable.

These features made it the blockchain of choice by the Ethiopian government, covering its entire education system. This is on top of previous commercial contracts with food and footwear manufacturers related to logistics monitoring and product tracking. Furthermore, top crypto currency investors are actively seeking to add ADA to their portfolio considering the market interest in staking protocols and blockchain built to enable decentralized applications.

What Is ADA Current Price Position?

The Cardano ADA Token features 4th largest among the top crypto currency market capitalizations as per coinmarket. With a maximum supply of 45 billion ADA, its market capitalization is holding at $68.59 billion.

By June 1st, its trading volume had increased by almost 13%. More importantly, in anticipation of smart contract integration via Alonzo upgrade, ADA prices jumped dramatically. From January 2021 to June 2021, ADA crypto coins surged by 886%, from $0.1753 to $1.73. It currently trades at $2.06.

The ADA (Cardano) price currently is $2.07 USD with a 24-hour trading volume of $2,793,636,146 USD. There are already one million ADA wallets. Out of those wallets, 70% of ADA crypto coins are staked among 2,500 active pools, making it a highly decentralized network. ADA price is already ready to move even higher with exciting upcoming development and dApps, which will all have negligible transaction fees.