Launched in September 2017, Cardano has a lot of similarities to Ethereum. It’s also a platform for decentralized applications (dApps), with smart contracts written in its proprietary programming language—called Solidity, like Ethereum. While its market cap of $4 billion makes it one of today’s largest cryptocurrencies, it’s still relatively unknown to many people—perhaps because Ethereum itself launched back in 2015. But Cardano might be on its way to surpassing some of that familiarity, due to work being done by IOHK (Input Output Hong Kong)—the firm contracted by Cardano's development team to lead ongoing development efforts and help market their product. They're making great strides toward becoming a known and trusted brand within cryptocurrency circles.
How does Cardano Work?
To improve on these weaknesses, Cardano uses a new method called Ouroboros, which allows for far more secure proof-of-stake mining. In proof-of-work mining, as with Bitcoin, miners must invest large amounts of money in specialized computers and other equipment to have a chance at adding transactions to blocks (and getting rewarded). By contrast, in proof-of-stake mining systems like Ouroboros, all you need is some cryptocurrency—you don't even need to purchase any specialized hardware. This makes it easier for people around the world to mine coins and join consensus as equal peers on a network that doesn't see participants or nodes ranked by economic power. You can read more about how exactly Ouroboros works here and here.
The Project Behind Cardano
Cardano was developed by a small group of engineers and researchers, Charles Hoskinson being one of them. It began in 2015 when Hoskinson, who had previously founded Ethereum (ETH), realized that blockchain technology was going to play a huge role in our future. He wanted to create a platform that gave developers more freedom to build decentralized applications (dApps) while also providing users with more security. The end result is an evolved version of Ethereum: one that uses Haskell code and Ouroboros proof-of-stake (PoS) algorithm. The PoS model is built on cryptography; it depends less on mining because it’s harder for hackers to manipulate than Bitcoin’s Proof-of-Work (PoW) model.
Use Cases of Cardano
What can you do with Cardano and its ADA coin? Investing in cryptocurrencies has become popular for many investors as it provides a new kind of diversification away from traditional markets. The various platforms offer their own set of benefits, but what are some of things to consider before making an investment decision based on use cases alone? Below are three reasons why so many people are drawn to platforms like Cardano and its cryptocurrency token, ADA.
Advantages and Disadvantages of Cardano
The first question that pops in anyone’s mind when they hear Cardano must be: what is Cardano? Well, as a matter of fact, it’s simply a platform used for creating decentralized applications (DApps). Though most people might associate cryptocurrency with Bitcoin only, there are other cryptocurrencies available which are used for different purposes. When people think about cryptocurrency they may not realize that they can be divided into two main categories: altcoins and protocol tokens. The difference between these two types of cryptocurrency lies mainly in their function and how they interact with other parts of their network.
Where to Buy and Store ADA, the Cryptocurrency behind Cardano.
After you’ve decided to buy some ADA, you’ll need to decide where and how to store it. While there are several exchanges where you can buy ADA, such as Bittrex and Bitfinex, these are exchanges where you will have to trade your USD or other cryptocurrencies for ADA. There are some other options that allow you store ADA yourself. You can download an official wallet from Cardano’s website (this is a good idea) or simply use any other Ethereum wallet that supports ERC-20 tokens (such as the MyEtherWallet, trust wallet). It’s also possible to buy a hardware wallet (such as Ledger Nano S) that comes with both security features and cryptocurrency storage for multiple currencies, including ADA
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