Lately, Cardano has become a hot topic in the cryptocurrency world, with ADA experiencing a remarkable 53% surge over the last month, reaching a value of over $0.37. The protocol’s Total Value Locked has also significantly increased, reaching $251 million, marking an outstanding surge of over 380%. Notably, this is only a few million shy of its all-time high of $323 million in March.
What is Cardano?
Cardano (ADA) is a decentralised proof of stake (PoS) blockchain aiming to provide a more efficient alternative to proof of work (PoW) networks.
The cryptocurrency associated with Cardano is called ADA, named after Augusta Ada King, Countess of Lovelace (1815–1852), recognised as the pioneering computer programmer. Ada plays a crucial role in the blockchain’s PoS consensus mechanism and is rewarded to users contributing to the blockchain through participation in a stake pool.
History of Cardano (ADA)
In 2015, Charles Hoskinson, a co-founder of Ethereum, initiated the development of Cardano, and by 2017, the platform was officially launched. With a vision to offer an alternative to Ethereum, Cardano and Ethereum share common applications like smart contracts, pushing to establish connected and decentralised systems.
Positioning itself as an evolved iteration of Ethereum, Cardano proudly claims the title of a “third-generation” platform, distinguishing itself from Ethereum’s “second-generation” status. Beyond this, Cardano has set a noteworthy objective of extending banking services to the unbanked global masses.
Cardano Emerges as Frontrunner in Blockchain Development
Cardano stands out as a leader in blockchain development, claiming the top position with 502.57 GitHub commits in the past 30 days. Polkadot (DOT) and its test network Kusama (KSM) are closely followed, securing the second and third spots with 484.23 GitHub commits each.
Investors in Cardano are likely keeping a close watch on the Upbit D Conference (UDC), scheduled for November 13, 2023. According to Lookonchain, the recent surge in altcoins has been attributed to the South Korean exchange Upbit. Consequently, this event holds the potential to impact a wide range of assets, with various crypto executives expected to present news, updates, or reports that could influence bullish or bearish price movements.
What is Cardano Staking?
In Cardano’s Proof-of-Stake (PoS) system, a node’s ability to generate blocks on the blockchain is determined by its staking. The stake of a node corresponds to the amount of Ada it holds over the long term. This stake represents the interest of a pool participant backed by the Ada pledged as collateral, which cannot be utilised or spent by the holder, serving as a security measure for ensuring honest validation behaviour. Users who hold pledged Ada receive rewards in the form of transaction fees, and the distribution of these rewards is based on the quantity of Ada a user has staked.
Participants engage in staking pools, collective groups of ADA holders pledging their coins. Together, they collaborate to update the ledger, generate new blocks, and collectively earn rewards.
The Future of Cardano
Cardano’s development unfolds in “eras,” each bearing the name of influential figures in poetry and computer science history: Byron, Shelley, Goguen, Basho, and Voltaire. Basho signifies the era of scaling and optimisation aimed at enhancing Cardano’s capabilities. As we approach 2024, there’s an eager anticipation for transitioning from the Basho era to Voltaire.
Voltaire is the concluding chapter in Cardano’s developmental journey, promising to introduce the power of voting and treasury management to the blockchain and network. This transformative era builds upon the foundation laid by earlier smart contract functionality and system improvements. The evolution from Basho to Voltaire reflects not just a technical progression but a narrative of Cardano’s growth and the exciting prospects it holds for the crypto community.
How Cardano Differs from Bitcoin
Bitcoin and Cardano are dissimilar in various aspects. Bitcoin was originally conceived as a peer-to-peer payment system. At the same time, Cardano is a versatile ecosystem that empowers developers to craft tokens, decentralised applications (dApps), and various use cases within a scalable blockchain network.
In terms of consensus, Cardano employs Proof of Stake (PoS), a departure from Bitcoin’s competitive mining process where cryptocurrency serves as a reward. This shift reduces energy consumption and waste by eliminating the need for specialised mining computers that demand substantial electricity. Cardano users can install compatible wallet software on their devices, stake their Ada, and earn rewards for participating in the network. This approach distinguishes Cardano and aligns with a more sustainable and user-friendly model.
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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
