Cardano was created as an Ethereum
The main aim was to process more transactions at a lower cost and protect users’ data using distributed ledger technology and a smart contract program.
Cardano provides people with an opportunity to build smart contracts, make decentralized applications (dApps), and instantly send and receive funds with minimal fees.
Cardano has a utility token, ADA. A ticker was inspired by the first female programmer, Ada Lovelace, who lived in the 19th century.
The total amount of ADA coins is limited, so that the coin is resistant to inflation. The token is a nice mixture of being secure and scalable.
ADA tokens can be used for paying transaction fees to use the platform. It’s a reward for stake pool operators as they run the proof of stake system.
Above all, active users get ADA for safety supplies. ADA holders have a voting right to change or improve the protocol and, by doing this, participate in its development. The developers use it to power their smart contracts running on the blockchain.
Cardano has a smart contract program that provides safety and scalability thanks to its unique two-layered architecture. The Cardano Settlement Layer (CSL) manages all transactions with low transaction fees using ADA. The Cardano Computation Layer (CCL) is a set of protocols helping to run smart contracts. That assists developers in creating decentralized apps (dApps), guarantees security, and makes small changes for end-users.
Unlike Bitcoin, Cardano utilizes the proof of stake (PoS) consensus, which consumes less energy and reduces transaction fees. In comparison, the success of the Ethereum London hard fork serves as a concrete stepping stone for Ethereum 2.0 to move from PoW to PoS.
Such blockchains as bitcoin org
The Ouroboros Protocol
A PoS algorithm involves nodes on a network generating new blocks by staking their cryptocurrency as collateral to verify transactions. Ouroboros depends on a different algorithm. The is divided into various epochs, each lasting for around 20 seconds, and is made up of slots. Every slot gets its slot leader elected by stakeholders and is responsible for adding a block to the protocol.
The slot leaders have to create a minimum of 50% of the transaction blocks within a given epoch. Input endorsers approve each block. An epoch can be split infinitely, which makes it possible to run as many transactions as needed. All the participants who mine an epoch get rewarded for their services.
Anybody with a 2% stake in the Cardano blockchain can mine a block. Nodes with more significant stakes have bigger chances of being elected slot leaders. The multi-party computation (MPC) uses a form of randomness to make the slot leaders’ election as unbiased as possible. It seems like each elector is tossing a coin and sharing a fair result with the others.
The best way to store your ADA tokens is a crypto wallet. Hot and cold wallets allow you to safely store all your assets in one place.
It’s not a surprise that there are many wallets out there, and each has its pros and cons. Get your SimpleHold wallet right here and manage all your ADAs with incredible ease!
Cardano was built trying to cover Bitcoin and Ethereum’s blockchains’ drawbacks. That’s why the platform ended up having the following pros:
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