What is Cardano (ADA)?
One of the leading blockchain projects and open community of enthusiasts is Cardano and ADA's cryptocurrency. It is not limited to financial development, promoting social initiatives, and charity.
Cardano is a blockchain platform created for developing and launching smart contracts and decentralized applications based on it. The platform is named after Gerolamo Cardano, the eminent Italian mathematician, engineer, and physician who published seminal works on probability theory, algebra, and mechanics.
How does Cardano (ADA) work, and what is an ADA token?
ADA is a cryptocurrency from Cardano that uses a proprietary blockchain developed by Cardano called CSL (Cardano Settlement Layer). Altcoin ADA is named after Ada, the countess of Lovelace (Augusta Ada King), considered the first programmer in history.
A history of Cardano and ADA
In 2014, Charles Hoskinson, one of the developers of Ethereum - one might even say the best programmer on Vitalik Buterin's team - left the Ether project and founded IOHK (Input Output Hong Kong) with his partner Jeremy Wood. The new company began developing the Cardano platform.
The implementation of the blockchain project, ADA Whitepaper, led by two venerable professionals, paid off soon after, with the launch of ADA – Cardano's own currency – in Japanese trading at the end of September 2017.
Interestingly, many blockchain analysts point to Cardano's superior algorithms compared to Ethereum's. It is likely, though we cannot say so, that the Ether team initially had different visions for the project's development, including from a technological point of view. Both Cardano and Ethereum are currently among the leaders in the list of most popular blockchain platforms.
The Cardano project, represented by its founders and investors, is not just a group of developers but an alliance of innovators and drivers of progress. For example, they sponsor the development of social programs in African countries, invest in high-tech manufacturing and development in India, and mentor talented and young companies by helping them develop unique projects based on Cardano and Polkadot blockchains. For more on the platform, see our article "What is Polkadot (DOT)?".
The advantages of Cardano
Analyzing the stages of the project's formation, the introduction of its own cryptocurrency into circulation, the features of the functioning of the blockchain, as well as the technological aspects of Cardano, we can highlight the main advantages of the crypto project:
- The project's mission is to work through competitors' mistakes and bring only the best qualities of blockchain projects to life.
- Cardano has a specific quality assurance in the form of regulatory surveillance.
- The platform has a well-functioning and robust user data protection algorithm. Cardano's blockchain guarantees complete anonymity and the security of its customers' confidential information.
- A proprietary blockchain has a high rate of Cardano transactions per second.
- Low network fees.
Facts about Cardano and the potential of ADA
At the time of writing, the market capitalization of ADA in circulation is $39 billion, and the capitalization for the entire issue is estimated at $52 billion. It is worth noting that the capitalization is calculated from the current rate of the ADA Altcoin, which is currently $1.15.
The Cardano project is younger than Ethereum, but their development paths are similar. To assess the cryptocurrency's investment potential and get an answer to the question of what Cardano is for an investor, let's remember that the rate of ETH (Ethereum cryptocurrency) is currently hovering around $1,500 per ETH, with this project hitting the market in mid-2015 at around $1.8 per ETH. You must agree that the likely capitalization of ADA – when it reaches at least the same price at which ETH is currently traded - seems truly out of scale.
What is the Cardano ADA in charity
Cardano's range of initiatives is not limited to the development of blockchain projects, as mentioned above. For example, at the end of March 2021, the project team donated half a billion ADA dollars to charity. In this particular case, it was an initiative to support environmental and animal welfare organizations.
The company sponsors a large number of social programs in African countries. In Ethiopia, for example, cooperation with the Cardano team in the industrial and social-demographic sectors has been secured at the state level (a new electronic citizen identification system has been created based on the Cardano blockchain). Cardano uses the most robust blockchain system, which has been highlighted by crypto-industry experts, with the main benefits being the resilience at work of the ecosystem and low fees for transactions on the network.
Analysts note that this fundamental basis for the system's attractiveness will inevitably play a plus in terms of the popularity of ADA compared with Ethereum and Polkadot. Based on these facts, one can only guess how many times the Altcoin value will increase in the coming years because the Cardano project demonstrates an increase in its positions every month, based on the growing interest in it from investors and traders.
Cardano is a fairly young and ambitious crypto project with its own blockchain and Altcoin. Despite the age of the project, in terms of capitalization, ADA is already in the top 10 coins in the world, ranking 7th (at the time of writing).
The blockchain development team is a close-knit team of professionals who set themselves the highest goals. Over the 8 years of the project's existence, its products have become in demand on a global scale, and its satellite projects are not only commercially successful but also recognized at governmental levels in different parts of the world.
The EXEX platform, assessing the sustainability of ADA cryptocurrency positions, its potential, and the fundamentals of its back end, offers its clients the opportunity to trade ADA without limitations and use beneficial leverage conditions.
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