An investor's quick guide to Cardano (ADA)
With several technological advancements, numerous coins are introduced in the market. This includes Cardano (ADA). As it continues to grow as one of the most successful digital assets, several investors began to recognize its value in the market. By being widely accepted into the digital space, several people, including online casino players, are using coins to place their bets.
Aside from Bitcoin (BTC), several other coins are now accepted on online casinos and other platforms. With its decentralized nature, people can now enjoy these digital assets’ full potential.
After making waves in the crypto market and later being accepted on sites like Bitcasino, Cardano or ADA is now included in the wide roster of acceptable payment methods. Here is a closer understanding of it.
What is Cardano?
Cardano is one of the most rapidly expanding crypto in the market and is currently recognized as one of the top-performing assets based on its market capitalization. The coin began as a research project that was conceptualized by Ethereum (ETH) co-founder Charles Hoskinson.
Its whitepaper was written in 2015 with the support of Jeremy Wood, a former ETH operations management staff together with several academic researchers and blockchain professionals. It is also the first peer-reviewed blockchain, with two years of research behind it. The blockchain was first introduced in 2017 to address the scalability, interoperability, and long-term viability of the coins that came before it, namely BTC and ETH.
Similar to other coins in the market, it provides a monetary function that allows decentralized and smooth transactions using its native token, ADA. The token is named after Ada Lovelace, one of the few female mathematicians in the 17th century who is also known as the world’s first computer programmer.
Since it is a Proof of Stake (PoS) coin, ADA is not limited to working only within Cardano's platform. This means that depending on the overall number of ADA coins held, it can influence how a person can mine or validate particular transactions.
How it works
Cardano claims to be the world's third-generation blockchain after BTC and ETH.
Its blockchain functions on two protocols. These are the Ouroboros PoS consensus mechanism and its dual-layer blockchain. These protocols are then segregated into the Cardano Settlement Layer (CSL) and Cardano Computation Layer (CCL) which aims to solve crypto sphere's long-standing concerns of scalability and interoperability.
Unlike BTC’s proof-of-work mechanism which pits miners against each other to validate transactions, Cardano's Ouroboros PoS protocol assigns one block to each validator. This allows each member's time and effort to be utilized better.
Users must stake a particular quantity of ADA to become a block validator. The more ADA they stake, the more likely they are to be selected as block validators and receive ADA incentives.
More transactions are validated at a faster pace because of this protocol. Compared to BTC's 7 transactions per second, Cardano’s network can process up to 257 transactions per second.
Cardano’s dual-layered blockchain makes it a hybrid of BTC and ETH. Its transactions are verified and documented in the first layer, the Cardano Settlement Layer (CSL). It acts as the network's balance ledger, keeping track of all transactions.
On the other hand, Cardano Computation Layer (CCL) is in charge of the network's evolution. Developers can use this to build their own decentralized applications and smart contracts.
The dual-layer architecture allows simultaneous transaction settlement and smart contract development. This is because two tasks are separated into their own layers, the network's processing speed is increased. This feature sets it apart from other coins.
Characteristics of Cardano
This promising crypto has several characteristics that make it more impressive. Here are some of them:
Cardano users will not mine for coins in the same manner that BTC users do. Instead, the Cardano blockchain has its own PoS system called the Ouroboros, which assists in determining how a person can confirm their transactions based on the number of ADA tokens they own, as mentioned above. The network bandwidth is maintained by the Ouroboros in the sense that it functions in a peer-to-peer network and subnetworks.
Moreover, ADA coins differ from BTC in such a way that they rely on slot leaders rather than having anyone mine for coins. You must be chosen at random by Cardano's algorithm to be a slot leader.
Only slot leaders can build a block in Cardano. A slot leader is a node that has the authority to assist in the building of blocks for the current slots. Since Cardano's algorithm is in charge of deciding who can be a slot leader, any user has the chance to become the slot leader. However, a user can only become a slot leader if they happen to be the owner of a chosen node/coin.
Cardano's major purpose is to serve as a blockchain-based internet. Their core concept is that crypto may coexist even if they each have their own protocol and set of regulations. With the support of cross-chain transfers enabled by the Cardano blockchain, BTC may smoothly be transferred into Ethereum, just as Ripple can smoothly work with Litecoin and vice versa.
Cardano’s goal is to become a self-sustaining network by establishing its own treasury system wherein its smart contracts can be stored. Cardano will receive a small portion of every transaction on the network through the mentioned treasury. Simply said, it aspires to serve as a one-of-a-kind wallet for its consumers that may be used for an extended period of time.
These are just some of the basic information that users need to know about Cardano and its native coin. By knowing more about this promising crypto, the ADA token, and how it can be used, users can see its massive potential even when using it to play in Bitcasino.