What is Cardano (ADA)? Here’s the Summary

Cardano is one of the most widely adopted smart contract-enabled blockchain platforms we have today. It is designed to support the creation of decentralized applications (DApps).

While Bitcoin and other popular blockchain networks such as Ethereum Classic are based on the proof-of-work (PoW) consensus mechanism model, the Cardano blockchain is a proof-of-stake (PoW) platform that combines the Ouroboros consensus protocol to function.

Founded in 2017 by Charles Hoskinson, Cardano is regarded as the first proof-of-stake (PoS) blockchain protocol developed with high scalability in mind. As a proof-of-stake network, Cardano supports multiple validators which verify and approve transactions before they are added as new blocks to the network.

Notably, Cardano is also the first blockchain to implement Ouroboros — the first peer-reviewed, verifiably secure blockchain protocol. The Ouroboros protocol enables the Cardano network to remain completely decentralized, and sustainably scalable with robust security.

In addition, the blockchain network is built to complete transactions at a very fast speed. Also, it is an environmentally friendly technology as it does not support crypto mining which requires high energy consumption.

History of Cardano (ADA)

Charles Hoskinson, the CEO of the blockchain engineering company Input Output Global (IOG) and a co-founder of Ethereum began the development of Cardano in 2015. But the PoS-based blockchain was launched in 2017.

Since the launch of Cardano, it has positioned itself as an alternative to Ethereum due to its improved functionalities and cost-friendliness for users and developers.

Owing to this and its ability to process more transactions per second when compared to the Ethereum network, Cardano was once dubbed the ‘Ethereum killer’.

What is ADA?

ADA is the native currency of the Cardano network. By market cap, ADA is one of the biggest cryptocurrencies. At the time of writing, it has a circulating supply of 34,713,746,685 ADA with its maximum supply capped at 45 billion units.

ADA touched its all-time high of $3.09 on September 2, 2022, while its all-time low of $0.0183 was recorded on October 26, 2017.

How to buy Cardano?

Following the four steps below, you can easily buy Cardano:

Choose your preferred crypto exchange

The platforms that bring buyers and sellers together and facilitate cryptocurrency trades are known as crypto exchanges.

While there are many crypto exchanges, not all support ADA. Therefore, to buy ADA, you must choose an exchange that supports the popular token.

Fund your account

After opening an account on your favorite exchange, you have to fund it with either a stablecoin such as USDT, other cryptocurrencies, or fiats.

Buy ADA

The next thing is to buy. Simply select the ADA trading pair you want to trade. Then, using a market or limit order, you can buy any volume of the token.

Store ADA

It’s necessary to create a hot or cold crypto wallet where you can store your crypto tokens.

There are various types of wallets where you can store your tokens including ADA. While some prefer hardware wallets, paper wallets, and software wallets, some investors choose to store their assets on crypto exchanges. Whatever method you adopt, it is important to store your assets where maximum safety is guaranteed.

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Tobi Loba

Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.