Cardano (ADA) is the third-generation peer-reviewed blockchain smart contract platform as well as a cryptocurrency. It was brought in to address the scaling problems that existed with bitcoin, a first-generation coin, and Ethereum, which belongs to the second-generation. Cardano has been recognized as one of the biggest blockchains to successfully use a proof-of-stake consensus mechanism.
Cardano was founded by Charles Hoskinson, who was also one of the co-founders of the Ethereum network along with scholars and academics from the University of Edinburgh and Tokyo Institute of Technology, and other prestigious institutions. Charles Hoskinson is the CEO of IOHK, the company that built Cardano’s blockchain.
How Does Cardano Work?
To understand the modus operandi of Cardano, it’s important to understand its components. There are mainly two. First, the Cardano Settlement Layer (CSL), which helps with the settlement of transactions that use Cardano’s cryptocurrency. This layer is still under development to handle smart contracts. The hierarchical structure of Cardano ensures that it can be used as a medium of exchange and as well as to generate smart contracts.
Second, Ouroboros, which has an algorithm that uses the Proof of Stake protocol to mine coins. The protocol is customized to reduce energy use and time for making new coins.
Experts also expect Cardano to work with the mainstream finance ecosystem citing its interpretability property.
Cardano (ADA) as a Cryptocurrency
The current value of Cardano stands at USD1.06, market capitalization at $33,980,238,678, and market supply at 31,948,309,441. Approximately 2.5 billion ADA was allotted to IOHK at the time of launch. Comparing that with the current market supply, it’s easy for anyone to estimate the growth of Cardano. About 16% of ADA’s total supply went to the project’s founders, with the remaining 84% being split among investors.
The graph below reads the ups and downs of the Cardano cryptocurrency from October 3, 2017, to March 13, 2021. The trajectory of Cardano after COVID-19 is very much similar to that of bitcoin. Its value has surged to an all-time high of USD1.21 on February 26, 2021. After that, there is a minor drop but that is negligible considering the volatility that exists in cryptocurrency trading.
How to Invest in Cardano?
Wondering where can you buy Cardano (ADA)? Well, there are many cryptocurrency exchanges in India that allow you to buy and sell Cardano effortlessly paying the lowest transaction fee. Find the right trading pair under the spot or futures market instrument that unites ADA with your local currency. In India, you can even deposit and withdraw Cardano in some exchanges in INR. Create an account, complete KYC, and deposit with a registered bank account. You can transfer the amount to the same bank account.
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