Debuted as Ethereum Killer, Cardano ADA has come a long way since its inception in 2015. You may want to relate its story with the legendary Ferrari vs Lamborghini clash that led to the birth of Lamborghini supercars. I will explain why a dispute between the co-founders of Ethereum led to the birth of this cryptocurrency, an in-depth analysis of ADA coin with price prediction. Let’s jump right into the table of contents and explore the new blockchain in town.
Watch the complete video on ADA Cardano Cryptocurrency –
What is Cardano?
Founded by Charles Hoskinson in 2015. Cardano is an open-source and decentralized blockchain. The blockchain use proof of stake (POS) protocol against the widely-known proof of Work (POW). It’s a third-generation decentralized blockchain that addresses scalability, regulatory compliance and interoperability issues that are big headaches in the blockchain space.
Story of Cardano (ADA):
Charles Hoskinson was the co-founder of Ethereum. In the year 2015, Hoskinson left Ethereum over a dispute with one of the other co-founders Vitalik Buterin. Vitalik wanted Ethereum to be a not for profit organization but Hoskinson thought otherwise. This dispute gave birth to Cardano (ADA) which I think resembles the story of Lamborghini supercars. Born as a result of a dispute between the founders of Ferrari and Lamborghini. Interesting!
What is Cardano ADA coin?
ADA coin or ADA token is the currency of the Cardano blockchain. Cardano is a proof of stake blockchain that require validators to check and confirm the transactions on its network. In order to maintain the due diligence, validators or stakeholders require ADA tokens that work as fuel to power the blockchain.
How Cardano (ADA) works?
Cardano works on Ouroboros algorithm. The algorithm is purely based on proof of stake protocol. Cardano claims it to be environment-friendly since it consumes less power as compared to the proof of work protocol which is used primarily by Bitcoin.
How Ouroboros work:
Ouroboros is created to make the blockchain more sustainable, secure, scalable and energy-efficient, keeping the ethical factor in mind. Since Ouroboros follows the proof of stake protocol, it distributes the network control by championing stake pools.
Let me simplify it for you. Suppose there’s a big process that will take an hour to complete. If you’re using the algorithm, the same can be completed in a matter of minutes. Ouroboros algorithm divides the process (transaction) into a set of time frames called epochs which are further split into different time slots. Consider slots as school periods.
In every time slot, a leader is selected from the stake pool validator list at random (the higher the stake of ADA, the better the chances of winning the role of a leader). Its the leader’s responsibility to verify the transactions and add blocks to the chain. Of course, the system has protocols in place which monitors the leader’s activity.
Post the process completion, Ouroboros collects the reward from all the epochs and the distribution is done on the basis of stake contributions by participant validators in the stake pool. One with the highest stake will be rewarded the most and likewise.
Cardano vs Ethereum:
Cardano and Ethereum are two different blockchains with rich features to offer to the end-user. Both these blockchains support DAPPS and smart contract creation. However, the mode of operation and the adherence to the protocols are different.
Ethereum favours proof of work protocol (for ETH 1.0), it was bugged with high transaction fees, scalability and interoperability issues. Thanks to EIP1559 implementation, Ethereum has moved to ETH2.0.
After the launch of Polygon MATIC and Biconomy BICO coin interoperability and high transaction fee issues seems to be taken care of. Finally, there’s Ethereum news around a change in protocol from POW to POS. Feel free to check out my post on What is Ethereum ETH cryptocurrency for details.
Cardano was created to address the Ethereum issues and works on Ouroboros POS protocol. However, Ethereum is quick enough to put criticism to rest and move forward with the upgrade. This brings in the question, do we really need Cardano after the Ethereum upgrade?
The answer is yes, one blockchain isn’t enough to onboard every decentralized application and smart contract. There is a lot of space for a promising blockchain to survive in parallel.
Total Ethereum supply is unlimited while Cardano supply is limited to 45 billion
Scalability and Interoperability:
Cardano claims to solve the issue of scalability and interoperability. Unlike other blockchains like Ethereum and EOS. Cardano was created to address these issues from the start.
Smart contract and DAPPS creation:
Cardano supports DAPPS and Smart contract creation on its blockchain. It is rather easy to create a smart contract on Cardano than on Ethereum since the latter has a very low tolerance rate for errors.
Checkout Cardence Launchpad for Cardano ecosystem.
Cardano uses proof of stake protocol with Ouroboros algorithm which is believed to consume less energy as compared to proof of work protocol. Also, Cardano mining isn’t possible but staking ADA is possible on specific wallets.
A store of value:
Cardano ADA coin gave a 300 per cent return in the last bull run which is an eye-opener for many investors in this space. At the time of writing the post, Cardano stands tall at number 3 in terms of market cap, just behind Bitcoin and Ethereum, proving to be a promising investment.
The consensus protocol and the platform that supports smart contracts and DAPPS are still under the development phase. Any further delay in the launch of these features will pose a threat to Cardano in terms of rising competition.
ETH 2.0 Upgrade:
For a long time, Cardano (ADA) was playing around with the tagline “Ethereum killer”. However, the recent Ethereum upgrade to ETH2.0 has put all the doubters to rest. The new upgrade is smart, fast and has the ability to match and compete with every blockchain in the crypto space.
This in turn is bad news for Cardano since it was trying hard to capture the market share of Ethereum by offering a complete solution based blockchain in place of Ethereum.
Ethereum is not the only blockchain Cardano has to worry about. There’s Avalanche crypto (AVAX), Polkadot crypto (DOT) and Electro-Optical System (EOS) competing side by side for the same spot. Both these blockchains are catching up fast. Cardano has limited time on hand to prove itself and excel in all areas to better its chances for worldwide adoption.
Cardano is the only blockchain that doesn’t have a whitepaper. There’s no clear documentation on why the project is started? what problems are addressed by it? The team take cues from the blockchain designs prepared by other blockchains to spearhead their boat. This may result in questioning the future reliability of the project.
How to stake Cardano ADA?
Cardano relies on proof of stake protocol therefore Cardano mining is not possible using the traditional methods. However, you can stake ADA token on the trusted list of validators by participating in the stake pools which will help you take part in the validation process. Once the process is completed you will be rewarded depending upon the volume of transaction and the amount of ADA token you have allotted for staking.
ADA holders can delegate their stake using Daedalus or Yoroi wallets
Cardano Company Structure:
The structure of Cardano is quite different from a typical blockchain company which is powered by developers. Cardano is backed by three companies –
- IOHK (Input Output Hong Kong)
- Cardano Foundation
IOHK is the foundation company started by Charles Hoskinson in 2015 after leaving Ethereum. IOHK focuses on the core project development and new integrations to the blockchain. Cardano Foundation helps market the company and spread awareness. Emurgo is a Japanese venture capital firm that helps bring clients to Cardano and help them integrate blockchain into their businesses.
Please check the latest Cardano price, shared below –
Cardano Price Prediction:
The project has grown by leaps and bounds and successfully made its entrance into the top 3 cryptocurrencies by Market Cap beating Binance coin. In the recent bull run, it has hit an all-time high of $2.50 and a low of $1.00 during the market crash.
Clearly, it’s a less volatile and stable currency compared to its peers like Ethereum and EOS. Given the rise in demand for environment-friendly cryptocurrencies, Cardano is here to stay and see the price jump in the range of $5- $10 by 2025.
Algorand ALGO coin is the closest comparison to Cardano price level
How to buy Cardano in India:
Cardano can be bought on the Indian cryptocurrency exchange WazirX. It’s the safest and easiest way to purchase cryptocurrencies in India. You just need to create an account and complete KYC to make a purchase. Please read my post on How to buy Bitcoin in India to understand the complete process. Also, check out its native Wazirx coin.
Should you invest in Cardano ADA coin?
Since its inception in 2015, the project has come a long way to capture investors’ attention which clearly reflects in the current price level of Cardano. The project witnessed new partnership developments and use case implementation, one of which is with the Ethiopia Ministry of Education. It plans to integrate and launch an identity and record-keeping system on Cardano (Source: Wikipedia).
Checkout Pavia Crypto: The new Metaverse project launched on Cardano blockchain
All of it sounds interesting. However, let’s not forget the features of the blockchain i.e DAPPS and smart contracts are still under development. There’s still a lot of work to be done to match its core rival Ethereum. Having said that, I am neutral about investing in Cardano when there’s Ethereum and Solana in the same arena. Indeed it’s a better bet than investing in shitcoins.
This covers my review of ADA Cardano with price prediction. In my next posts, I will talk in-depth about Solana crypto (SOL), Biconomy BICO and Brave Browser BAT coin. If you like the post, please share it and educate your fellow friends. Do remember to subscribe to my YouTube channel for more informative content, released every week.
Cryptocurrency is a highly volatile market. All the information shared in the post is for knowledge purpose only. By no means, it’s financial or investment advice. Readers are responsible for their own investment decisions and should only invest in cryptocurrency after proper research.
Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.