Cardano

price
change

Discover Cardano's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Cardano?

Cardano (ADA) is an open-source, decentralized public blockchain and cryptocurrency that aims to be a highly scalable, sustainable, and secure platform for running smart contracts. It uses a proof-of-stake (PoS) consensus mechanism, which is more energy-efficient than traditional proof-of-work (PoW) systems. ADA is the native cryptocurrency used for transactions, staking, and governance on the Cardano network.

How is Cardano used?

Cardano (ADA) is used in several ways:

  1. Transfer of Value: ADA can be used as a secure exchange of value without the need for a third party, similar to how cash is used. It can be sent and received as a form of payment.

  2. Transaction Fees: ADA tokens are used to pay transaction fees on the Cardano network, similar to how ETH tokens are used on the Ethereum platform.

  3. Staking: ADA holders can stake their tokens to participate in the validation process, earning rewards in the form of ADA tokens. This helps maintain the security and integrity of the blockchain.

  1. Governance: In the future, ADA will be used as a governance token, allowing holders to vote on changes and upgrades to the Cardano platform.

  2. Smart Contracts: ADA is used to fuel the development and execution of decentralized applications (dApps) and smart contracts on the Cardano network, similar to how ETH is used on Ethereum.

Overall, ADA is the native cryptocurrency of the Cardano platform, designed to be a flexible, sustainable, and scalable blockchain for various applications.

How do I store Cardano?

To store Cardano (ADA) tokens, you have several options:

  1. Daedalus Wallet: This is a full node wallet that allows you to store, receive, and stake ADA and native assets like tokens and NFTs. It offers advanced features such as filtering stake pools by rankings and supports hardware wallet integration.

  2. Yoroi Wallet: This is a popular light wallet available as a browser extension and mobile app. It provides a seamless user experience, supports staking and delegation, and is compatible with hardware wallets. Yoroi is known for its dApp connector, which allows users to interact with many decentralized applications.

  3. Typhon Wallet: This is a newer web wallet and browser extension that offers easy management of ADA and native tokens, including NFTs. It supports multi-account functionality and has a rich staking center for tracking rewards and pool information. Typhon is also compatible with various hardware wallets.

  1. Hardware Wallets: For added security, you can use hardware wallets like Ledger Nano S, Ledger Nano X, and Trezor T. These wallets provide offline storage and can be integrated with software wallets like Typhon and Yoroi.

  2. Atomic Wallet: This is an all-rounder wallet that supports multiple blockchains, including Cardano. It offers a user-friendly interface and supports staking, trading, and NFT management.

  3. Exodus Wallet: This is a multi-chain wallet that supports Cardano and other blockchains. It offers a user-friendly interface and supports staking, trading, and NFT management.

When choosing a wallet, consider factors such as security, ease of use, and compatibility with your specific needs. Always follow best practices for securing your private keys and passwords to ensure the safety of your ADA tokens.

How to buy Cardano?

To buy Cardano (ADA) tokens, follow these steps:

  1. Choose a Crypto Exchange:

    • You can use popular exchanges like Coinbase, Binance, Kraken, or MoonPay to buy ADA tokens.
  2. Create an Account:

    • Register on the chosen exchange's website or mobile app. You will need a valid ID and may be asked for proof of address.
  3. Add a Payment Method:

  • Connect a payment method such as a bank account, debit card, or credit card. Some exchanges also support third-party payment channels and digital gift cards.
  1. Search for Cardano:

    • On the exchange's platform, search for Cardano (ADA) and select it from the list of available assets.
  2. Enter the Amount:

    • Input the amount you want to spend in your local currency. The exchange will automatically convert it to the equivalent ADA amount.
  3. Finalize the Purchase:

  • Review the details of your purchase and confirm the transaction. Once the order processes, you will receive your ADA tokens.
  1. Store Your ADA:
    • You can store your ADA tokens in a crypto wallet, such as a hardware wallet, paper wallet, software wallet, or leave them on the exchange. Be aware of the security risks associated with each storage option.

Remember to research and understand the fees, risks, and market volatility associated with buying and holding cryptocurrencies.

Discover
Cardano
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

History of Cardano

Cardano (ADA) was founded in 2015 by Charles Hoskinson, a co-founder of Ethereum, and Jeremy Wood, a technologist. The project was launched in 2017 with the first mined block, marking the beginning of the Cardano blockchain network. Initially, Cardano created approximately 31 billion tokens, with 26 billion sold to investors through an Initial Coin Offering (ICO) that raised over $60 million, primarily from Japanese investors. This earned Cardano the nickname "Japanese Ethereum." The remaining 5 billion tokens were distributed to the Cardano Foundation, IOHK, and Emurgo.

The Cardano blockchain underwent significant hard forks, including the Shelley hard fork, which transitioned the network from a federated Byzantine Fault Tolerance (fBFT) consensus mechanism to a more decentralized Proof-of-Stake (PoS) consensus mechanism called Ouroboros. The Alonzo hard fork enabled smart contracts on the Cardano blockchain, while the Vasil hard fork brought scalability upgrades. In February 2023, the Valentine upgrade occurred, allowing for more efficient cross-chain applications and support for other protocols.

Cardano's development roadmap consists of five primary stages: Byron, Shelley, Goguen, Basho, and Voltaire. Each phase has enabled integral pieces of the final network, with the goal of achieving full decentralization governed by ADA holders and funded by a portion of its own small transaction fees.

Today, Cardano is overseen by three separate and independent organizations: the Cardano Foundation, IOHK, and Emurgo. The Cardano Foundation manages the development of the protocol, IOHK designed the proof-of-stake algorithm, and Emurgo helps enterprises and large organizations adopt the Cardano blockchain.

Discover
Cardano
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

How Cardano works

Cardano (ADA) is a decentralized blockchain platform that uses a unique proof-of-stake (PoS) consensus mechanism called Ouroboros. This mechanism is designed to be highly scalable, secure, and energy-efficient. Here's a detailed overview of how Cardano works:

Proof of Stake (PoS) Consensus Mechanism

Cardano's PoS consensus mechanism, Ouroboros, is based on peer-reviewed research by a team of computer scientists and cryptographers from Tokyo University and other institutions. This mechanism is designed to validate transactions in a scalable and secure way while ensuring the platform is energy-efficient.

Validators and Staking

In the Cardano network, validators are selected based on the amount of ADA they have staked and the length of time they have held it. Validators must stake their ADA tokens to participate in the validation process. The more ADA tokens staked, the higher the chances of being selected as a validator. Validators are responsible for opening and finalizing blocks of transactions, and they are rewarded with ADA tokens for their work.

Staking Pools

To participate in the validation process, users can create or join a staking pool. Staking pools consist of one or more trusted server nodes that conduct the work of validating transactions, updating the ledger, opening new blocks, and earning rewards. Public pools distribute rewards to members based on how much ADA they have staked, while private pools give rewards to their sole owners.

Governance and Smart Contracts

Cardano aims to become fully decentralized through community-driven governance. ADA holders can vote on changes and upgrades to the platform using their tokens. Additionally, Cardano supports smart contracts, which allow developers to build decentralized applications (dApps) and manage multiple cryptocurrency assets associated with these dApps.

Environmental Advantage

Cardano's PoS consensus mechanism is significantly more energy-efficient than the proof-of-work (PoW) mechanisms used by Bitcoin and Ethereum. This makes Cardano a more environmentally friendly option.

Phases of Development

Cardano's development roadmap consists of five primary stages:

  1. Byron: Basic functionality, including transferring ADA.
  2. Shelley: Steps towards decentralization with community-run nodes.
  3. Goguen: Smart contracts are enabled on the network.
  4. Basho: Sidechains are introduced, enhancing scalability and interoperability.
  5. Voltaire: Governance and self-funding make ADA fully decentralized.
ADA Token

The ADA token is both a digital currency and a way to make transactions on the Cardano network. It is used to pay transaction fees and is staked by validators to help maintain security and validate transactions. ADA holders can also use their tokens to vote on changes and upgrades to the platform.

Wallets and Storage

Cardano offers official wallets, such as the Daedalus wallet (full node) and the Yoroi wallet (light node), which allow users to earn new Cardano by staking their assets and participate in governance. Users can also store their ADA tokens on these wallets or on other supported cryptocurrency exchanges.

Key Features
  • Scalability: Cardano can process more than 250 transactions per second (TPS), making it much faster than Bitcoin and Ethereum 1.0.
  • Energy Efficiency: Cardano is 1.6 million times more energy-efficient than Bitcoin.
  • Peer-Reviewed Network: Cardano's development is guided by academic research and a formal development model, ensuring its evolution beyond its parent organization.

Overall, Cardano is designed to provide a highly scalable, secure, and energy-efficient blockchain platform for running smart contracts and decentralized applications.

Discover
Cardano
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

Cardano's strengths

Cardano (ADA) has several strengths that set it apart from other cryptocurrencies:

  1. Research-Based Development: Cardano emphasizes a methodical, peer-reviewed approach to development, often partnering with academics. This aims to instill a higher level of reliability and long-term sustainability.

  2. Scalability Focus: Cardano is designed with scalability in mind. Technologies like Ouroboros Hydra (layer 2 solution) promise to enable high transaction throughput necessary for mass adoption.

  3. Energy Efficiency: Cardano's Proof-of-Stake consensus mechanism (Ouroboros) is inherently far less energy-intensive than Bitcoin's Proof-of-Work, making it an environmentally conscious choice.

  1. Strong Community: Cardano has a dedicated community of supporters, developers, and enthusiasts, which can be a driving force in its evolution.

  2. Governance Ambitions: The Voltaire era aims to implement on-chain governance, giving ADA holders a greater role in shaping the project's future.

  3. Environmental Advantage: Cardano is one of the most energy-efficient blockchain systems, being 1.6 million times more energy-efficient than Bitcoin.

  1. Faster Transactions: Cardano can process more than 250 transactions per second (TPS), making it much faster than Bitcoin and Ethereum 1.0.

  2. Peer-Reviewed Network: Cardano's development is guided by academic research and a formal development model, ensuring its evolution beyond its parent organization.

These strengths position Cardano as a sustainable and scalable blockchain platform with a strong focus on research and community involvement.

Cardano's risks

Cardano (ADA) carries several risks, including:

  1. Market Competition: Cardano faces stiff competition from more established blockchain platforms like Ethereum, which have a longer history of use and more developer uptake. This competition can make it difficult for Cardano to gain significant market share.

  2. Risk of Being Too Late to Market: Cardano's slow progress in certain areas puts it at risk of being too late to market, which could make it harder to penetrate Ethereum's lead.

  3. High-Risk Investment: Cardano is considered a high-risk investment due to the volatility of the cryptocurrency market. Investors should be cautious and only invest what they are comfortable losing.

  1. Staking Risks: While staking ADA does not involve handing over control of the ADA to someone else, there are still risks associated with staking. For instance, if a staking pool is hacked or becomes saturated, the rewards may be affected. Additionally, there is a risk of losing private keys, which could result in the loss of ADA.

  2. Regulatory Uncertainty: The regulatory environment for cryptocurrencies is still evolving and can be unpredictable. Changes in regulations could negatively impact Cardano's value and usability.

  3. Technical Risks: Cardano's development is guided by academic research and a formal development model. However, technical issues or bugs in the code could still arise, potentially affecting the network's stability and security.

  1. Risk of Manipulation: Cardano's risk score indicates that it is a relatively moderate risk investment. This means that the price could potentially be manipulated by limited trading activity, which could result in significant price swings.

Overall, while Cardano has several advantages, such as its energy efficiency and scalability, it also carries significant risks that investors should carefully consider before investing.

Discover
Cardano
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

Did Cardano raise funds?

Discover
Cardano
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

Cardano’s team

  • Cardano Foundation Team: The team includes developers, communicators, administrators, and strategists working together to advance Cardano as a public infrastructure. Key members include Frederik Gregaard (CEO), Cynthia Yang (Head of Regulatory), and others.
  • IOHK Team: Led by Charles Hoskinson, IOHK is responsible for building the Cardano blockchain. Key members include Jeremy Wood, Aggelos Kiayias, and others.
  • Emurgo Team: Emurgo is focused on commercial applications of Cardano. Key members include Romain Pellerin, Jeff Pollack, and others.
  • Cardano Development Team: This team includes Frank Gosselink (CEO), Joost Zuidberg (CEO), Tamara Monzon (Interim COO), and others.

Whalee AI

The fundamental analysis assistant for crypto value investors.

Cardano NEWS REPORT

Latest news

Want an analysis of Cardano? Tell us on discord.

Help us improve!
Tell us what you think of this page and which features you would like to see next.
OPEN FORM