Cardano is a decentralized proof-of-stake blockchain platform in third-generation. Though very similar to Ethereum, Cardano relies on peer-reviewed scientific research as elementary units for its updates.OHK, Cardano Foundation, and EMURGO- are collectively responsible for Cardano’s development. IOHK and Cardano Foundation are non-profit foundations; EMURGO is a for-profit entity.
The IOHK, accountable for building Cardano, operates with a team of academics scattered worldwide to present analysis and evaluate platform updates before implementation to ensure that they are scalable. Cardano runs on the cryptocurrency called “ada.” It has issued products for identity administration and stock traceability.
Additionally, Cardano uses Ouroboro as its proof-of-stake algorithm—to create blocks and authenticate transactions occurring on its blockchain.
Cardano’s development began in 2015 by Charles Hoskinson, the co-founder of Ethereum. It hit the floors in 2017. Both ADA and ETH are used for similar purposes, like smart contracts, and aim to create a connected and decentralized system.
Cardano is a modernized version of Ethereum since its third generation while Ethereum’s second generation. Moreover, its objective includes rendering banking services globally.
Cardano’s principal uses are identity management and traceability. Identity management helps to streamline methods involving data collection from varied sources. Traceability is used to trail and examine a product’s manufacturing means from origin to finished goods and eliminate the counterfeit goods market.
“Ada,” Cardano’s digital currency, is named after Ada Lovelace, a 19th-century countess and English mathematician recognized as the first computer programmer.
Functions, Features, Team
Cardan’s founder has a great development team working with successful projects, such as BitShares and Ethereum.
It is the first blockchain to use multiple layers ( viz. settlement and computational layer). The ADA cryptocurrency offers cheap and quick transactions. Cardano’s consent mechanism is more environmentally helpful and fairer.
Cardano’s algorithm Ouroboros uses proof-of-stake (PoS) protocol to mine blocks. This protocol is designed to lessen energy expenditure during the block production process. To do this, it eliminates the need for hash power or massive computing resources central to the functioning of the proof-of-work (PoW) algorithm used by Bitcoin.
In Cardano’s PoS system, staking defines a node’s ability to generate blocks. A node’s stake is equal to the amount of ada held by it over the long term.
It transitions between direct democracy and representative democracy:
- People decide on their policies directly.
- People transfer their voting responsibilities to a representative or delegates who can vote on their policies for them.
- The representatives themselves can delegate their voting duties to another delegate who can vote on their behalf. This property wherein a delegate can designate their delegate is called transitivity.
- If a person who has delegated their voting doesn’t like the vote that their delegates have chosen, they can take back their vote and vote on the policy.
- The opinion of each person plays a role in the final policy formulation.
- To become a delegate, you need to win a person’s trust. You don’t need to spend millions of dollars on costly election campaigns.
- The option to oscillate between direct and delegated democracy ensures that minority groups are fairly represented.
- It has a scalable model. Anyone who doesn’t have the time to vote on their policies can delegate their voting responsibilities.
How Cardano Works
The Cardano network confirms transactions using a consensus mechanism called Proof-of-Stake:
- People who help validate transactions are called validators.
- Validators need to freeze some of their ADA coins, called the “Stake.”
- Once a validator verifies a transaction, they gain additional ADA cryptocurrency as a reward.
- The higher the stake, the higher chance a validator has of winning the reward!
- The amount of coins they get is based on their amount of “stake.”
This system is efficient and environmentally friendly, needing less electricity, which means lower transaction fees.
The Cardano team says that none of the other proof-of-stake protocols around offer a random selection of a validator. Their standard Proof-of-Stake model ensures everybody gets a fair chance of earning the reward.
This is called “The Honest Majority,” which means that people having a significant stake in the blockchain (for example, having lots of ADA coins) have a reason to ensure that the network remains safe, constant, and reliable.
Cardano Future & Roadmap
Cardano is building a blockchain that does things uniquely by distributing data irrelevant to the people involved in the transaction.
Let’s say you send 100 ADA coins to your friend, then you both are the only two people involved in the transaction. When validators verify the fund movement, they need to maintain the data relevant to the transaction.
The team is also aiming to install a protocol called “Sharding.” As more and more people utilize the network, the amount of transactions per second rises.
Cardano conducted a test in late 2017 that allowed the blockchain to process 257 transactions per second, significantly more than Bitcoin and Ethereum.
Similar to Ethereum, Cardano is an innovative contract platform. However, Cardano provides scalability and security by a layered architecture. It is the first blockchain platform to evolve from a scientific theory and a research-driven strategy. That’s not all. It is also one of the first platforms to be built in the Haskell programming language. It can also be used to send and receive digital funds.
ADA trading simplified
ADA is a part of the WazirX Rapid Listing Initiative. Here’s what you can do with ADA on WazirX.
- Deposits — You can’t deposit ADA from another wallet to your WazirX wallet.
- Trading — You can buy, sell, trade ADA in our USDT or BTC market easily.
- Withdrawals — You can’t withdraw ADA from your WazirX wallet. What you can do instead is sell it in our USDT or BTC market.
How to buy Cardano
Numerous exchanges offer Cardano in India. Buying or trading in ADA coins is similar to trading cryptocurrencies like BTC, ETH, etc. You have to choose a trader you like, create an account after KYC, deposit funds into your wallet and start trading!
Here are a few easy steps for you to follow when buying Cardano from WazirX in India:
- Create a WazirX account
- Visit the WazirX website and sign up.
- Add your mail id and a password.
- Read WazirX’s terms and conditions and check the checkbox if you agree.
- Once you are done, click on sign up.
- Open the automatically sent verification email sent to your inbox and Verify email.
- To verify KYC, select your country.
- After verification, your account will be up and running!
- Add money.
You can deposit money(Indian rupees in this case) in two ways:
- Make a deposit via UPI/IMPS/NEFT/RTGS. This will need you to submit your transaction details to WazirX for attestation.
- Deposit via IMPS/NEFT/RTGS. In this case, you can conveniently skip the abovementioned transaction details part.
- Buy ADA
Check the exchange rate on the trader website you chose. For example, at the time of writing this article, the prices are:
- On the bottom right of your screen, you will find a buy/sell option
- Click on Buy, put in your sought-after price in INR and the amount of ADA you wish to buy.
- The last step is to click “BUY ADA.”
Voilà! It’s done! After all, this happens successfully, ADA coins will be added to your wallet!
We at WazirX are calling those who can present liquidity for ADA. We will proffer you a unique deposit address, allowing you to market your tokens on WazirX. Fill up this form right away!