Cardano cryptocurrency guide advises where to buy and how to buy Cardano. This guide also contains the markets, value, trading, investing, buying, selling, transactions, blockchain, mining, technology, advantages, risks, history, legislation, regulation, security, payment, networks and many other interesting facts about Cardano as well its status in the world of cryptocurrencies.
Cardano, Tuesday, 2018-08-14
- 1 What Is Cardano?
- 2 Beginner's Guide to Cardano
- 3 Where and How to Buy Cardano?
- 4 Cardano Markets
- 5 Where to Spend or Use Cardano?
- 6 How Does Cardano Work?
- 7 Cardano Regulation
- 8 Is Cardano Secure?
- 9 History of Cardano
- 10 Cardano Videos and Tutorials
- 11 See Also
What Is Cardano?
The world of cryptocurrencies is unfolding rather fast. Since 2009 when Satoshi Nakamoto started Bitcoin, the focus on blockchain technologies has received a lot of focus. At first, cryptocurrencies were marred with a lot of suspicion because few understood about them. This narrative has now changed completely. Between 2009 and 2018, more than 1300 cryptocurrencies entered into the crypto market.
Every new cryptocurrency entering the industry targets introducing new ways of advancing blockchain technology. One of these cryptocurrencies is Cardano. The cryptocurrency was launched on 29th September of 2017 and grew steadily to become among the top 10 cryptocurrencies by the start of 2018.
Cardano is one of the first cryptocurrencies that is fully driven by research and scientific approach. The cryptocurrency is designed from the highly secure Haskell programming language. Cardano development team indicates that it is the first blockchain that will strike a balance between protecting users' privacy and regulations.
The first cryptocurrency to implement Ouroboros algorithm
The cryptocurrency is the first to use Ouroboros, a new proof-of-stake algorithm. It is programmed in a manner that it can allow future soft forks to cater for emerging conditions. For example, it is flexible enough to allow soft forks implementation. Besides, it uses an airtight governance model to help prevent the public ledger from getting controlled by a few parties through consensus decision making.
The cryptocurrency utilizes the multiple-layer protocol to run the main functions. These are the control layer and settlement layer. However, they work in conjunction with each other to make operations seamless.
The settlement layer is responsible for the unit account of ADA (the cryptocurrency token). The control layer deals with other operations on the network such as recognizing entities, running smart contracts, and facilitating compliance.
Because of its diverse innovations, Cardano is fast gaining the attention of the cryptocurrency community. In December 2017 and start of 2018, the price rose sharply thrusting the crypto to the top ten digital currencies based on market capitalization. But it is the views of the experts, community, and investors that Cardano is the cryptocurrency of the future that is making people have more trust in it.
Beginner's Guide to Cardano
For a long time, Ethereum was the only cryptocurrency in the smart contract arena. But not any longer! The entry of Cardano into the cryptocurrency world has ushered a new giant that is seen as a possible contender for the top position. The Cardano blockchain was developed from scratch after comprehensive research of the industry that is growing at supersonic speed.
But the entire cryptocurrency industry is marred by a lot of uncertainties. From new users to experienced crypto traders, the focus is joining the industry and taking advantage of the fast-rising popularity. Since its establishment, Cardano has snowballed and jumped to top ten cryptocurrencies based on market capitalization.
A new algorithm aimed at changing the cryptocurrency landscape
From the architecture to mining, the new Ouroboros proof-of-stake algorithm has helped people to take a new view of cryptocurrencies. It is implemented in a double-layered architecture that provides users with a lot of freedom on the network. You can deploy decentralized applications, set rules for smart contracts, mine, or simply send money to other nodes.
In addition to this, the cryptocurrency allows users to operate without going against the law. The design of the cryptocurrency has reduced the fear of operating against the law. With its unique model and the fast-growing value, it appears that the trust in the Cardano network is growing from one level to another. You cannot afford to be left behind.
To make the right decision about the network, you need to grasp all the information about Cardano. In this guide, we bring you everything you need to know about Cardano cryptocurrency. Keep reading to know more about the blockchain technology application, value, growth, security, anonymity, history, and the benefits of using the network. We also demonstrate why people trust the network, how to use ADA, and key Cardano markets. These are just a few things we have delved into deeply in this guide. Keep reading to learn more and get the best out of the network.
Where and How to Buy Cardano?
The world of cryptocurrency is growing and expanding at a supersonic pace. From Japan to the US and other areas, the trend is the same; investing in cryptocurrency. For some, the target is being part of the cryptocurrency industry to avoid being left behind. The few months that Cardano has been in operation by start of 2018 have demonstrated that it has huge potential that could make it follow projectiles similar to those depicted by other top cryptos such as Bitcoin.
One of the easiest and fastest ways of getting hold of Cardano is buying. But where and how do you buy Cardano? Here is the process of buying Cardano.
Start by acquiring an appropriate Cardano wallet.
The Cardano wallet is perhaps the most important thing that every user needs when joining the Cardano network. The wallet is the location where all ADA will be stored after the buyout is over. Make sure to pick a good wallet that guarantees extra safety and makes ADA recovery easy.
1) Buy from appropriate cryptocurrenncy exchange
Cryptocurrency exchanges are the main platforms for buying Cardano. They operate the same way forex markets run. Traders come to the exchanges to sell their native assets at the latest prices. Just like with forex trading, the cryptocurrency trading exchanges are solely driven by demand and supply.
As a new cryptocurrency, the exchanges that have added Cardano are still very few. However, its good performance saw many exchanges promise to add it to their trading pairs by the start of 2018. This means that the demand of the cryptocurrency is likely to continue growing as more people express interest to buy ADA.
Some of the top crypto exchanges that allow traders to trade and interested parties to buy ADA are Bittrex and Binance. Remember that the exchanges require all buyers to start by registering for accounts in their system.
2) Buy from cryptocurrency ATMs.
When Bitcoin heralded the entry of cryptocurrencies into the world, it was impossible to imagine walking into an ATM and buying a cryptocurrency of choice. Well, this is no longer a dream! Today, top cities such as New York and Tokyo have ATMs that you can visit and buy cryptocurrencies of choice. However, most ATMs are only designed to allow users buy Bitcoins. This means that you can only buy Bitcoins and then convert to ADA in an appropriate exchange such as Binance. Note that even with cryptocurrency ATMs; you will still need a cryptocurrency wallet.
3) Buy directly from cryptocurrency clubs
Cryptocurrency clubs have started springing as the popularity of cryptocurrencies keep growing. The clubs help to bring together those with native coins and others targeting top buy in the same roof. The only special thing about cryptocurrency clubs is that there are no regulations such as specified payment methods, creation of trading accounts, or specific payment methods. The moment a seller and buyer meet, they can agree on the terms of payment. For example, you can agree to pay for ADA in fiat, other cryptos or even hard assets. Remember that the transaction still requires both the seller and buyer to have appropriate cryptocurrency wallets.
One of the most important components when joining the Cardano network is a cryptocurrency wallet. A Cardano wallet is a location used for storing ADA (the native coins in the Cardano network). Note that a Cardano wallet is not simply used to store the coins; it is a full management platform for sending, receiving, and managing the native assets.
Before we look at the Cardano wallet, it is important to delve deeper into the concept wallet as applied in the cryptocurrency world. While the definition of a cryptocurrency wallet is a storage location for crypto assets, the description is indeed wrong. In reality, there are no coins stored in the wallet because all the native assets are digital and only reside in the Cardano network.
Your Cardano wallet stores the private and public keys. The private keys are your signature codes that identify you and your crypto coins in the Cardano network. If you do not have the private keys, you cannot activate or access the ADA stored in the network. Only you and the wallet know the private keys.
The wallet also stores the public keys. These are identifier codes that help to give a link to your wallet in the network. The public keys are the codes that you provide those who want to pay you in ADA. The public keys are also used by the nodes that help to confirm transactions on the network. You should only share the public keys when making a transaction and NOT the private keys.
There are a number of cryptocurrency wallets that users can use to store ADA. You can opt to use a hardware wallet, desktop wallet, web-based wallet, or paper-based wallet.
Daedalus wallet (the main Cardano wallet)
To make operations on Cardano direct, easy, secure, and more reliable, the cryptocurrency has indicated that it only supports the Daedalus wallet. This also doubles as the main cryptocurrency client that helps users to become nodes in the network. Note that the Cardano team has indicated that it will also start supporting other cryptocurrency wallets such as Hardware and Web-based types in the coming months.
Steps to follow when opening the Daedalus wallet
- Visit the Cardano website and check for the Daedalus client download portal. Note that they have a number of versions and you have to select the right version depending on your operating system.
- Install the program as Daedalus on your system. When you run the client, it will immediately synch with the Cardano network. This means that you immediately become a node in the network. The client will take about 40 minutes to install in the system.
- Open the Daedalus interface and navigate to the section My Cardano Wallet and hit Activate My Cardano Wallet. Create a password that must be at least 7 characters that include both numbers and letters.
- Hit Create My Personal Wallet after setting a strong password. This stage is very important because you will also generate the private key recovery seed phrase. You must store this key in the safest place to avoid loss or access by third parties.
- After getting the Recovery Seed Phrase, go ahead and create a Passphrase that you will always use when using the wallet. Your wallet is now open. You can go ahead and start managing the ADA in the network. Consider buying some from the exchanges to see how they record in the wallet. You can also ask a friend to send ADA or sell an item to get paid in ADA.
Where to Buy Cardano with Credit Card?
There is no direct method of buying Cardano with a credit card. If you have all the resources on the Credit Card, the best way is purchasing another cryptocurrency such as Bitcoin and converting to ADA. This means that you will need three things; a cryptocurrency wallet, an appropriate exchange, and ample funds in the credit card. Some of the great places you can buy cryptocurrencies such as Bitcoin and Ethereum include;
Where to Buy Cardano with PayPal?
There is no direct way to buy ADA with PayPal. Indeed, PayPal prohibits direct use to buy cryptocurrencies. Therefore, you should check for an appropriate exchange that accepts PayPal to buy Bitcoin or other altcoins before converting to ADA. Some good examples of such an exchange are Changelly and Poloniex.
How to Buy Cardano with Wire Transfer?
The banks are perhaps the most trusted institutions in the society today. People rely on banks to get their salaries, keep savings, and even transfer funds. They are even trusted with savings over a long time for people investing in high-value properties. If you have some cash in the bank and want to buy ADA, here is the process to follow.
- Start by opening an appropriate cryptocurrency wallet. In the case of Cardano, you need a Daedalus wallet.
- Pick an appropriate exchange that accepts payment in wire transfers. Great examples of such exchanges include Poloniex, Coinbase, and Bitfinex.
- Follow the cryptocurrency purchase procedure and select pay with a wire transfer. Here you need to provide all the required details to facilitate purchase with a wire transfer.
- Wait and provide any additional information that might be required to complete the transaction. Buying ADA with wire transfer is lengthy and more expensive compared to other methods. It might take up to five working days to have the transaction completed.
Where to Sell and Trade Cardano?
Do you have some ADA and want to sell them? Do you want to find out about the trading platforms that can be used with ADA? The Cardano trading platforms are the exchanges and platforms that allow users to buy and sell the native asset for other cryptos or fiat currencies.
Most cryptocurrency exchanges are designed to operate based on the prevailing market demand. Note that most trading platforms require users to follow the local administrative regulations. This means that you are required to provide personal identification, proof of address and even telephone number.
Notably, your ADA are likely to be targeted by attackers more at the exchange level than at the main Cardano network. You must, therefore, do your homework well to pick the most secure platform. Here are the top five places to sell and trade Cardano.
How Much Are the Transaction Fees of Cardano?
Every cryptocurrency in operation enters the industry with one core objective; helping to reduce the cost of sending funds from one point to another. In Cardano, the charges for transferring ADA are not fixed. To know the amount that you will be charged when sending payments, the following equation is applied.
Transfer fee = a + b * size.
Where (a = a constant given by the network [it was 0.155381 ADA on 1st of Jan 2018]; b = a constantly released by the network based on ADA/byte [the figure was 0.000043946 on 1st Jan 2018]; size = size of the transaction in bytes).
This means that the lowest that users can pay on the network is about 0.155381 ADA and it grows by 0.000043946 ADA for every byte increase in the transaction. The transaction fees of every epoch is collected, pooled, and distributed to the slot leaders for motivation. It is, therefore, important to check the charges of the transaction every time you are making a transaction.
Cryptocurrencies are designed to operate like fiat currencies without leaving the respective networks. This means that you can use them to make payments and even hold awaiting the value to grow. Another very important component of cryptocurrencies is that they are tradable just like the common fiat currencies.
To trade in cryptocurrencies, you need to identify appropriate markets. These are platforms that allow people with different cryptocurrency assets such as ADA to exchange for fiat or other cryptocurrencies. To start trading at the Cardano market, you need to appreciate two things.
All traders must have a cryptocurrency wallet to hold their crypto assets. In Cardano, you must have Daedalus wallet (the official wallet in the Cardano system).
You must register with the respective exchange/market before starting to trade in it. This means that you will need to provide some personal info such as name, email, and even proof of address in some cases. To enjoy trading at the markets, you need to start with selecting the best.
The most effective tips for picking the best cryptocurrency markets
- The market reputation: This is a very important factor when selecting a market to trade ADA for other cryptos or fiat. If a market holds good reputation, you are likely to enjoy its procedures and good rates. To know a market's reputation, make sure to join or follow reviews done by experts and cryptocurrency forums such as Bitcointalk.
- The charges for using the respective market: Every cryptocurrency market comes with its charges for making transactions. A good market should have subtle charges to avoid taking all the profits that clients make from trading in the network. Make sure to carry a comprehensive price comparison for various markets.
- The geographical restrictions: There are some markets that are designed only to serve people within a specific region. If you are outside the jurisdiction, the chances are that applications will be declined. In other cases, users outside the specific regions do not have access to all the market features. It is crucial to check out how the selected market operates and even run trials before committing to using it for trade.
- Verification requirement and timing: Just like the cryptocurrencies, many people anticipate to operate in total privacy. Though some verification is crucial because the exchanges are guided by local laws, people who are interested in enhancing anonymity should consider the markets that only require limited info. For example, there are exchanges that only need email address while others demand a lot of personal details including phone numbers.
- How secure is the selected market? You want to pick a market that guarantees total security. Here, you need to check for the market with advanced security features to protect the network and clients ADA. You should particularly focus on picking the exchange without a hacking history, and comes with two-factor authentication.
Great customer support: When it comes to using the markets, many cryptocurrency users want to have every feature a click away. If anything is unusual or not functioning well, the selected cryptocurrency should have good support to address it. You will also be able to resolve issues related to the personal trading account.
Top four Cardano markets
While Cardano has been growing rapidly in 2018, only a few markets have added it in their trading portfolios. However, most of them are already working on including it. This means that you will be able to trade in most markets with time. Here are the top Cardano markets you can visit to buy or sell Cardano.
- This is one of the most advanced cryptocurrency markets in the world today. The market was started in 2004 by Trista D'Agosta who targeted helping users to trade anonymously and monitoring funds throughout. This focus is seen as the key driver to the fast growth of the market.
- The first step to start trading in Poloniex is getting an account. The process is easy, direct and fast. It will only take about 10 minutes to complete the registration and start trading on the market.
- The second step is selecting the right operational level. You can opt to operate at the first level that only requires the name and email address. However, this level will limit you to trading $2000 worth of ADA. It is considered the best entry point for users who are new to the cryptocurrency world.
- If you want to operate at a higher level, consider going for the second or third levels. The second level is for traders who target volumes up to $25,000 worth of ADA. The level requires traders to use an email address, names, and government-issued ID, and phone number. If you still feel that the $25,000 trading level is still low, consider going for the third level that requires you to contact the Poloniex administration directly.
- The charges on the Poloniex are based on the trading volume. If you are trading less than $600 worth of ADA, Poloniex charges both the sender and receiver. The maker is charged 0.154% while the taker is charged 0.25%. Those with higher transaction volumes are charged a lower fee.
- This is one of the fastest growing cryptocurrency markets in the globe. The market was started in 2014 by Lai Richie and Bill Shihara who wanted to offer the best trading platforms for top cryptos. The market has always stood out because of its commitment to allow users use multiple payment methods. You can opt to trade ADA for other cryptocurrencies such as Bitcoin and ether or fiat.
- Notably, Bittrex also works as a cryptocurrency wallet. When you initiate a transaction in the Bittrex market, it is confirmed through a series of stages to reduce the risk of fraud. It links with the respective blockchain to confirm that the user actually owns the coins under consideration.
- To provide extra security to users in the network, Bittrex uses 2-factor authentication and verifies all traders with government issued ID and proof of address. It is this special focus on security that has helped Bittrex to operate more securely since establishment. No case of hacking has ever been reported in the Bittrex exchange system.
- The biggest issue in the Bittrex market is that registration and verification processes are very long. It can take up to 48 hours to complete the verification process before starting to trade. Traders have also been complaining about the poor quality of the customer service.
- Coinbase is a US-based cryptocurrency market that was started to support Bitcoin trading. The market has since grown to support major cryptocurrencies especially the best in the market. Users prefer the market because of its lovely user interface that makes trading easy, direct, and fun.
- One good thing about Coinbase is that it allows those who want to trade large volumes operate with a special feature called GDAX. The feature provides users with advanced trading features such as market analytics and dedicated support. The exchange also serves as a wallet for some cryptocurrencies.
- Changelly is a major cryptocurrency market founded in 2013 by a group referring itself as MinerGate. This is the group that also founded one of the leading mining pools for Bitcoin and other cryptocurrencies. Like other cryptocurrency markets, users who want to use the Changelly exchange are required to create trading accounts and verify them. They must also have appropriate wallets to hold the currencies they will buy.
- The main reason why Changelly has attracted a lot of attention is that it comes with very advanced metrics that make analyzing the market easy. This means that you can easily predict the direction that ADA or other cryptocurrency is taking before making a move. The market is also very fast. Users are sure of completing transactions within a very short time to take advantage of emerging trading opportunities. The biggest issue with the Changelly network is that the MinerGate team behind the platform is anonymous. This has prompted some users to argue the entire platform might be a Ponzi scheme.
Value of Cardano
After Cardano was launched in September of 2017, the value of ADA remained constant through to the end of November. Then it jumped from about $.03 to about $0.14 at the end of November. This was a huge leap of about 360%. It was a demonstration that the cryptocurrency was gaining popularity, acceptance, and demand.
Early in 2018, the value of ADA has been growing steadily to reach an average of $0.6.The rich features and the unique application of decentralized applications are seen as possible drivers that could see the value grow even further in the coming months.
The ability of the cryptocurrency to maintain the same growth trend is dependent on the commitment of the team, ability to repel attacks, and relationship to other organizations. It is very important that the Cardano development team work with more organizations to increase acceptability of the cryptocurrency.
Is It Profitable to Invest in Cardano?
By the start of the 21st century, the best investment opportunities were considered industrial establishments and real estate. But the focus is now shifting to cryptocurrencies. The lid was lifted after 2009 when Bitcoin pioneered the blockchain technology. Now, the investment opportunities in cryptocurrencies are limitless. With Cardano as one of the best performing cryptocurrency in the market today, many are those who have been asking whether it is actually a great investment opportunity. Here are the main reasons why you should go Cardano to reap more in the coming years.
- The Cardano network has very many applications
- Unlike other cryptocurrencies that are only used for sending payments, Cardano has very many applications. This has been the main reason it has been gaining popularity across the globe since inception. By allowing users to design and deploy decentralized applications, it is possible to extend the network and define its operations based on business's needs. This means that it will continue growing in demand and value.
- The network is led by a highly enthusiastic team
- Since its inception, many people have referred to Cardano as one of the most ambitious projects ever. While this is part of the biggest challenge based on implementation, the leading team has demonstrated it is up to the task. The top minds have managed to link research with practice to guarantee users of a better network and results. The lead team continues to inspire trust, draw more attention, and keep the value of ADA growing in the coming years.
- The value of the cryptocurrency has grown very rapidly
- After launching Cardano, the value of its native asset assumed an upward trending graph. This trend does not show any sign of abating in 2018. This means that people who bought ADA at the ICO level are already enjoying very high returns. With the advanced technology, unique architecture of the network and a highly enthusiastic team, this value is expected to continue growing.
- The network is preferred by those who want to operate in compliance with local laws
- Notably, many cryptocurrencies' operations are considered disruptive because they are seen to usurp the powers of existing institutions and governments. But Cardano is different. The Cardano two-layer architecture allows users to operate within the legal framework. This means that those who want total anonymity, as well as others who prefer being fully compliant, are sure of getting refuge in Cardano. This model is likely to keep the value of the crypto growing over time.
- The fast-growing community
- Immediately after Cardano was released, many people were fast to dismiss it as an overly ambitious project. However, the narrative has changed completely. The community has been growing rapidly, and it appears no one is having enough of ADA. The unique structures of the network have demonstrated that the cryptocurrency has a bigger potential than even the highly placed cryptos today.
While the profitability of Cardano is very attractive, its ability to follow the same trend will depend on the circumstances in the market. For example, the value of the cryptocurrency could easily drop sharply in case of an attack, regulations, and more advanced cryptocurrencies.
Where to Spend or Use Cardano?
Cardano is one cryptocurrency that is promising to rush past others in enhancing acceptance using its Cardano network. Though very few traders accept ADA directly, it is right to say that Cardano can be used everywhere. Users only need to get the Cardano card that helps to convert ADA to fiat immediately and make a purchase. Besides, users can also convert ADA to Bitcoin and make purchases in stores that accept Bitcoin. However, it is important that Cardano team works with more stores to facilitate its use in daily shopping.
Can Cardano Grow to Become a Major Payment Network?
When people join any cryptocurrency, they want to get higher value from the network through many payment channels. The main question that many have been asking is whether Cardano can grow to become a major payment network after reaching the top ten cryptocurrencies based on market capitalization.
Yes, Cardano can grow to become a major payment network. The reason why the cryptocurrency has a huge potential is its design. By operating in two unique layers, The Cardano Settlement Layer and Cardano Computational Layer, both individual and enterprise users find it easy to use the network. Businesses are particularly finding the network more appealing as a payment network because they can set the operational rules on the secondary layer, the Cardano Computational Layer.
Experts and the larger cryptocurrency community appear in agreement that the ability of the network to allow users operate within the legal framework makes it more preferable compared to other networks. People making payments do not have the guilt of breaking the law; they can operate openly and enjoy all the benefits associated with blockchain technologies.
Despite the appealing design of the network, there is no doubt that Cardano has a long way to go to become a major payment network. Here are some of the things that could hamper its ability to become a major payment network.
- Emerging stiff competition from better cryptocurrencies.
- Security dangers such as hacking either at the network level or even exchanges.
- Looming regulations.
- A sudden downward shift of the cryptocurrency value.
How Does Cardano Work?
The main objective of Cardano is helping to achieve what Satoshi Nakamoto espoused in 2009. Between 2009 and 2018, Cardano developers took the advantage of the progress made in the cryptocurrency world to learn and introduce a stronger platform.
Cardano uses a completely decentralized model of operation where people in the network use a peer-2-peer mode when making transactions. This means you do not need third parties such as banks to verify the transactions. Here is a closer look at the Cardano operational model.
The cryptocurrency is designed to work in two layers. These layers help to separate the ledger of account values from the main reason why values are moved from one node to another. It is this type of separation that has made it possible to implement smart contracts within the Cardano network. Besides, enterprises can also take the advantage of the separation to customize the design, privacy, and application of every smart contract.
1) The Cardano settlement layer (CSL)
This layer is used as the balance ledger and is the primary layer in the Cardano network. The layer was designed as an improvement to the Bitcoin model. It uses Ouroboros, a new provable secure proof-of-stake blockchain protocol crafted by Aggelos Kiayias. The protocol applies proof-of-stake type of consensus algorithm to create new blocks and confirm transactions that take place in the network. The main features of the Cardano Settlement Layer include;
- Two sets of scripting languages (one set to help move value, and another to enhance overlay protection support).
- Side chains that help to link the layer to other ledgers.
- Multiple user-issued Cardano assets.
- Multiple signatures including quantum resistance types.
- Scalability that allows increasing system capabilities as more users join the network.
2) Cardano Computational layer
The Cardano Computational Layer (CCL) is the second layer of the Cardano system. The layer holds the information on the reasons why transactions actually took place. Note that unlike the Bitcoin that has a single layer, the Cardano CCL layer operates as a detached platform from the primary layer. This means that users are free to set their individual rules and regulations for enterprises. It mimics the model used in Ethereum smart contracts that allow users to define the rules of their transactions. Indeed, CCL supports Plutus, the language used in running Smart Contracts in Ethereum.
One example of an enterprise rule can be setting standards for buyers of your products or services. For example, you could set commands so that a particular transaction is only initiated if a buyer deposits specific amount in the business account within a given timeframe. Any buyer who fails to meet the condition can have the money returned.
The second operational layer or CCL also includes a reference library that users can apply to create decentralized apps. This means that users can create apps for their enterprises, market them on the Cardano network, and work with clients internationally. Like Ethereum, the focus on apps development is believed to be the biggest driving force in the fast-rising interest in the network.
3) The Cardano's KMZ sidechains
Cardano's architecture was aimed at supporting sidechains based on the new proof-of-work algorithm. The sidechain protocol allows users in the network to move funds more securely from the first layer network layer (CSL) to any second layer (CCL) blockchain that employs the protocol.
This is one of the basis for the emerging interest in Cardano network. Businesses and individuals are sure of moving their funds more securely with little or no risk of getting hacked. But this is not all.
The side chain allows the Cardano blockchain team to work on specific ledgers that have certain levels of regulatory compliance. This means that users can opt to run on the Cardano network and still meet the regulatory requirements set by the central authorities. It is because of this that Cardano has become an important project of study for administrations that are working on setting up a holistic regularity system for cryptocurrencies.
Does Cardano Use Blockchain Technology?
Cardano uses the blockchain technology to run transactions in the system. The cryptocurrency operates as an open public ledger that contains blocks with latest transactions that are confirmed by slot leaders. The blockchain technology has advanced so much from 2009 as new cryptocurrencies look for better ways of enhancing efficiency, anonymity and cutting transaction costs.
The Cardano blockchain is based on a peer-to-peer protocol that allows users to make payments directly without involving third parties. Users in the Cardano network are able to send funds across the globe at any time of the day or night as far as they have the target recipient's public address.
The blockchain model used in the Cardano network operates in two layers. The first layer allows users to make transaction directly, confirm transactions and add them to the public ledger. The second layer of the blockchain allows users to deploy smart contracts to advance their businesses.
The Cardano system architecture is crafted carefully to make it easy to implement soft forks in future. This is perhaps the most important component of the public ledger. It means that Cardano will not have to be divided in the event of issues such as attacks or disagreements. In the Ethereum network, the DAO attack divided the Ethereum community and resulted in dividing the cryptocurrency (hard fork). The same thing happened to the Bitcoin network resulting in a hard fork that created Bitcoin and Bitcoin Cash. By avoiding the need for hard forks, it means that Cardano is assured of emerging stronger even when issues arise.
Mining in cryptocurrency industry is the process of creating new coins. The process of mining is used by the network as the main force to drive every aspect. From transactions to crucial decision making, the nodes spread in the Cardano network have to come to a consensus.
When Cardano was created, a total of 45 billion ADA were created. These are the only coins that will ever reside in the ADA network. The mining process helps to release these coins through a reward scheme for the nodes spread in the system.
The Cardano's Ouroboros proof-of-stake mining algorithm
While many cryptocurrencies apply the proof-of-work that simply factors the effort put towards confirming the transactions, the Cardano team preferred a different model. The Ouroboros proof-of-stake is a new algorithm that takes mining to a whole new level. Under the Ouroboros algorithm, only the slot leaders are allowed to confirm transactions and participate in decision making.
To become a slot leader, you simply need to have 1 ADA or more. Then, the Ourboros proof-of-stake algorithm selects the node that should confirm the transactions randomly. The method is considered one of the best because it reduces the scramble experienced in the Bitcoin network where only those with advanced and expensive mining equipment can confirm transactions.
However, the unique algorithm can also be a serious demotivating factor because nodes are less motivated to follow the mining process. Many people have indicated that though the cryptocurrency is performing very well at the beginning of 2018, failing to motivate the nodes appropriately can easily ebb its allure in the coming years.
What Are the Advantages of Cardano?
Since 2009 when cryptocurrencies entered the globe, more people have started to accept the technology and its diverse applications. This acceptance is mainly hinged on the many benefits that the cryptocurrencies provide to the community. Cardano has especially won the hearts of many because of its advanced design and focus on security. If you are planning to join Cardano, here are the main advantages to anticipate.
1) Cardano is an autonomous digital currency
- One of the core attractions drawing people to cryptocurrencies is the ability to operate in total privacy. Every transaction detail on the Cardano network is encrypted to ensure that only the sender and receiver know the details. Even the Cardano nodes spread in the network only confirm transactions but cannot know the individual details of those sending or receiving cash. You can, therefore, invest in the network and operate without worrying that people will know about your resources.
2) The best way to operate without worrying of third-party seizures
- Do you have some cash in the saving account in a local bank? Then, you should know that such funds are an easy target by third parties. Your bank account is the easiest target by courts of law in case you are involved in a lawsuit. However, Cardano offers total protection against such third party seizures. Because you operate anonymously, there is no one who can tell whether you have some cash somewhere. Therefore, even if a case comes your way without expecting, your funds will always be free from getting seized by third parties.
3) The best way to operate with utmost freedom
- If you target sending money through a bank, it will not be possible at night, weekends, and public holidays. However, Cardano gives users total freedom of using the network anytime of the day or night. Once you join the Cardano network, it is possible to send cash anytime of the day or night. All you need to do is have the right address of the target address and ample ADA in your cryptocurrency wallet.
4) The sure way to own and use the cryptocurrency network
- While the development team might have worked so hard to craft a winning network, it does not belong to them. The network as well as associated operations is owned by the nodes and users spread in the entire globe. This means that once you join the network, you will be involved in making important decisions on how it is run.
5) Cardano continues to grow rapidly in the cryptocurrency world
- The main reason that a lot of people have developed interest in cryptocurrencies is to enjoy the expected growth in value for their investment. This is the reason that Bitcoin has become a common name in all networks. Cardano is following Bitcoin closely because of the fast steady increase in value. After springing to the top ten cryptocurrency in the globe, Cardano has demonstrated its huge potential to grow and become as influential as Bitcoin.
6) Cardano operates in two layers that allow users select the level of compliance to local laws
- While the issue of regulation and cryptocurrencies is a murky one, Cardano appears to have finally found a way to satisfy all stakeholders. The network operates in layers and gives users the choice of operating in compliance with local laws. This means that you can opt to use Cardano network in order to enjoy benefits associated to blockchain technologies without going against the law.
7) Cardano provides users with an opportunity to invest
- Like other cryptocurrencies, Cardano provides users with a great opportunity to invest and see portfolios grow. While many people are interested in sending and receiving payment on the Cardano network, you also have an opportunity to buy the native assets and hold them over time. If you buy Cardano today, expect to reap a lot of returns in the coming years.
What Are the Risks of Cardano?
When the reports of a recent hacking in South Korea hit the news, every cryptocurrency enthusiast was shaken. But it is not just those who had invested in Cardano who are at risk when using the network. There are more risks associated to getting into and working on the Cardano network.
1) The cryptocurrency is very young
- The cryptocurrency niche is growing rather fast. People coming to the cryptos are interested in getting a very agile cryptocurrency with all the systems in place. They anticipate getting a network that has vibrant features which have been tested and proven to deliver results. But Cardano is still in its youngest period. Most of the components in network are still in the testing phase. This means that the stability of the cryptocurrency cannot be ascertained until it is a couple of years old.
2) The danger of getting overtaken by more advanced cryptocurrencies
- One of the reasons that Cardano development team gave for starting the cryptocurrency was to remedy the flaws in the existing cryptocurrencies. However, Cardano also risks finding itself in the same position a couple of years down the line. More cryptocurrencies are springing with more appealing design and technologies that could relegate Cardano to the back seat.
3) Risks associated to the looming legislation
- Since 2009 when cryptocurrencies debuted, there has been a lot of disquiet that they are targeted at causing disruptions to current administrations and institutions. Some governments such as China and Taiwan have had to close some activities such as ICO (Initial Coin Offerings) because of associated disruptions. Now, every administration is working extra hard to pass laws that will regulate cryptocurrencies. The indicators so far point at the possibility of very harsh laws that could affect the value of Cardano negatively.
4) The danger of losing your ADA
- When you acquire any digital asset, the risk of loss always looms. Unlike fiat currencies that are stored and insured by banks, the digital currencies only reside in the respective networks. This means that you can always be an easy target by hackers. You are particularly at a greater risk of losing ADA at the exchange level. This is because the Cardano network does not have direct control of the exchange operations. You can also lose ADA by forgetting the private keys or losing the cryptocurrency wallets.
5) The danger of getting drawn into scams
- Many fraudsters and scammers prefer to use cryptocurrencies such as Cardano that guarantee them total anonymity. Though Cardano has worked hard to ensure that the verification is done through trusted nodes, users can still be targeted. There is a high risk of traders trying to sell stolen, fake, or substandard items and insist to be paid in ADA. In other cases, illegal traders can set up scams and ponzi schemes with an objective of defrauding the targets.
6) The Cardano team is handling a very large scope of the project
- The Cardano project is a very ambitious one. They have taken most of the problems that were noted in previous cryptocurrencies such as Bitcoin and Ethereum. Though the lead team has put a brave face, there is a high probability that they could end up being overwhelmed. A better route could have been taking a specific issue and dealing with it comprehensively while structuring the cryptocurrency to allow them address other issues.
7) Very high volatility
- Like Bitcoin, Cardano is highly volatile. The cryptocurrency is directly prone to sudden fluctuations when things touching on its operations are reported. For example, the recent attack on a South Korea exchange sent the entire cryptocurrency industry into disarray. Cardano value also shifted downwards. This means that the current fast growth in ADA value could easily tumble and compromise investors' expectations.
These risks demonstrate that while Cardano is indeed a great investment, every person considering joining it should be extra careful. The forces working for and against Cardano as well as the entire cryptocurrency landscape are very many and could easily yield mixed reactions. From the looming regulations to the stiff competition, every investor should be very careful. You should always work with industry experts and be part of the crypto community to learn about the emerging trends and dangers. The most important of all is ensuring you only invest what you can afford to lose.
What Happens if Cardano Gets Lost?
One of the biggest worry that cryptocurrency users have is that their crypto coins could get lost. When you acquire some ADA, you need to know that the risk of loss always looms. How does this happen since ADA only resides in the blockchain network? There are four ways that you can lose Cardano.
- The common way of losing Cardano is by sending to the wrong address.
- You can also lose Cardano through hacking. Cybercriminals can target your ADA directly on the home computer or through the exchanges.
- Some people have reported loss of Cardano through loss of their cryptocurrency wallets. If you lose the wallet though damage to the computer or formatting the hard drive, the coins stalled in it will be lost.
- It is not uncommon to get people indicating they have lost the private keys to their Cardano wallets. The private keys are the link to your coins. They allow you to access the wallet and manage the Cardano crypto assets.
Operating on the Cardano network demands that you maintain greater vigilance on all operations. It is particularly important to learn the tricks of safeguarding your coins all the time. The Cardano Foundation and cryptocurrency experts recommend that those in the Cardano network are extra careful with their coins to safeguard them from attacks. You can achieve this by moving the coins to a cold storage and maintaining a backup.
Between 2009 and 2018, the existence of cryptocurrencies was not regulated in many jurisdictions. Many countries look at cryptocurrencies with a lot of suspicion while some of them commit to work hard to block operations in their areas. While the blockchain technology used in Cardano and other cryptocurrencies is revolutionary, it is also very disruptive. Let us take a scenario that demonstrates the operations of Cardano.
In an ordinary setting, sending cash abroad would require you to visit a conventional bank, open an account, deposit the cash, and identify the recipient. This chain of operation means that the government draws resources in the form of taxes, the banking institution grows, and a lot of employment is created. In fact, this is not all. The central administration draws direct regulations that banks must follow to control inflation, guide borrowing, and spur growth. Cardano cryptocurrency is considered disruptive
Now, enters Cardano! The cryptocurrency uses a peer-to-peer network that brings the sender and recipient on the same network. By removing the third parties such as banks, sending money through Cardano network is cheap, direct, and more convenient. But it is not seen this way by governments.
- The government sees Cardano as a disruptive technology that targets sabotaging its operations.
- Because the operations are peer-to-peer, the transaction fee is very small and no tax trickles to the central governments. This is the biggest worry that the governments have when it comes to regulating cryptocurrencies.
- The cryptocurrencies touch on the most crucial sector of the governments, taxes and currencies that define the success or failure of administrations.
For some such as the United States Federal Authorities, Cardano and other cryptocurrencies could become the conduits for illegal activities and funding terror. In May of 2017, cybercriminals who were behind the strain of Ransomware called wannacry insisted to be paid in cryptocurrency. Besides, numerous cases of cryptocurrencies being used as Ponzi schemes have raised a red flag of the possible chaos that could rock the globe.
Why Cardano regulation is so difficult
Even with these serious concerns, it is still interesting to note that no country has passed a single legislation to guide operations of Cardano and other cryptocurrencies. While Cardano has taken a unique focus that targets to make it compliant with local laws, questions still abound on why governments are hesitant to pass laws guiding digital cryptocurrencies.
- Cardano and other cryptocurrencies use very advanced technologies. This means that most administrations are forced to play catch-up.
- The systems used in Cardano and other cryptocurrencies are evolving rather fast. If a government passes legislation on one type of cryptocurrency technology, the chances are that others will sprout within a very short time.
- Most cryptocurrencies are owned by those using the network as opposed to a specific company. This means that even the administrations do not know who to target with respective laws.
- The applications of Cardano network span though countries. Even if laws are effected in one country, the chances are that it will still blossom in another country.
Is Cardano Legal?
Cardano is legal in most countries globally. Even though the applications and use of cryptocurrencies such as Cardano appear really controversial, their use remains legal. At this point, it is important to appreciate that many countries are seeing blockchain technologies to have crucial solutions to many problems.
The EU has pointed that blockchain technologies in use by Cardano and other cryptocurrencies have huge benefits. Indeed, the blockchain technology does not simply facilitate sending cash from one point to another. Rather, the technology presents a new line of investment and special way of handling data.
Because Cardano organizes info about transactions in a chronological way, users find it easier to manage their cash. You no longer have to worry about data storage, analysis, and making meaning of such info. Cardano has already simplified the task for you. Instead of simply passing regulations that place a lid on these technologies, the focus is looking at ways to enhance the administrative services. Here is the status of Cardano legal status in specific countries.
- The United States: Cardano has presented itself as a different cryptocurrency that is willing to go to any length to operate within the law. At the beginning of 2018, the US administration did not have any law on Cardano or other cryptocurrencies. The only mention released by the administration was from the Commodities Futures Trading Commission that insisted all cryptocurrencies be treated as commodities. This means that any income you make trading ADA is taxable.
- Japan: Japan's approach to Cardano and other cryptocurrencies has been subtle. The Japanese administration insists that there is no section in the Banking Act and Financial Instruments and Exchange Laws that prevent people from using ADA for payment. However, the administration makes it clear that Cardano cannot be used as a legal tender. This means that you are free to use and trade ADA in Japan.
- Hong Kong: Cardano is legal in Hong Kong. Hong Kong operates as a special administrative region of China which means it enjoys full autonomy from the mainland China. The administration has used this autonomy to build strong FinTech based firms. Through support for tech-startups, Hong Kong has indicated it will support advancing cryptocurrency projects to make its economy more attractive. Despite this, it has indicated that every scheme that targets defrauding people in Hong Kong will be prosecuted and terminated.
- China: Cardano is legal in China. Though China does not have a specific legislation on Cardano, its administration criticism has indicated the outright dislike for blockchain technologies. In the past, the country has stopped a number of cryptocurrency projects and even banned ICO (initial coin offering). The Chinese administration has indicated it will not hesitate closing anything done using Cardano and other cryptocurrencies if it compromises the ability to pay taxes or steak from Chinese.
- The European Union: Cardano is legal in the EU. Unlike countries such as China, India, and Taiwan that have been very critical of Cardano and other cryptocurrencies, the EU has indicated it appreciates the advances in blockchain technologies. The giant union emphasizes that it wants to help blockchain technology benefits trickle down to more people.
For Cardano users in the EU, it is important to treat the cryptocurrency native asset as a commodity. The EU Central Bank has indicated that users should look at any income as taxable revenue. It has even cautioned traders and users to be careful with the rapid Cardano, Bitcoin, Bitcoin Cash, and Ripple among other cryptocurrencies could become a bubble.
One thing that appears clear from Switzerland to the United States is that Cardano is legal. But this status will be very short. As countries ponder the overall effect of cryptocurrencies, Cardano users should be prepared for the possible ensuing shocks. The best thing that every person in the Cardano network should do is following the crypto regulation news to understand whether the laws will be negative or positive. If they will be negative, do not hesitate to offload some ADA to avoid making losses.
Cardano and Taxes
The topic of cryptocurrencies and taxes is a murky one. Every government out there looks at cryptocurrencies as specific technologies targeted at crippling their ability to collect taxes. This could be used to summarize the overall driver for regulations in the cryptocurrency world. The anonymous nature of Cardano has masked the identities of users such that they can even hide their investment and get away scotfree without paying a penny to the tax authorities.
A lot of concerns have been raised by Cardano users who express fears that they could at some point be unmasked and dragged into courts for tax avoidance. In every cryptocurrency forum, three questions that recur periodically are: Should I pay taxes for my operations at the Cardano network? Will the anonymity help to shield me from tax authorities? Will the tax man drag me to the court for trading and not paying taxes on the Cardano network?
The best way to go about using Cardano and taxes
Tax experts are in agreement that though you are operating anonymously on the Cardano network, it should not be used to avoid paying taxes. This means that you must treat every income as taxable revenue and make appropriate deductions. You can only operate on the right side of tax laws by following these tricks.
- Consider any revenue coming from trading ADA taxable. This means that even if there is no regulation that points such revenue is taxable, making necessary deductions will allow you to trade in peace.
- Ensure to capture all the transactions when they happen. This means that even without revealing the identity of your operations at the Cardano network, it is possible to prove that you are tax compliant. In the event that the looming laws require that respective networks provide detailed reports backdated several years, you will not have to worry about getting dragged to court.
- Ensure to capture the value of ADA corresponding value in local fiat currency when a transaction takes place. This means you will not have difficulty in proving the actual revenue and benefit made after trading in ADA.
- Notably, the topic of taxes and cryptocurrency is weight that everyone appears uncertain about the future of ADA and other crypto assets. Therefore, you should maintain close-association with cryptocurrency experts, tax professionals, and cryptocurrency community to have a fore-look at the expected laws. If the laws are negative, do not hesitate to offload some ADA to avoid sudden price fall and huge losses.
Note! Do not wait for the looming legislation to catch you off-guard. Make every effort to ensure you are tax compliant to avoid becoming a target for tax avoidance in future. Be smart, be tax compliant to operate freely and profitably in the Cardano network.
Does Cardano Have a Consumer Protection?
Consumer protection in Cardano is solely vested in the users. All decisions are made based on consensus. While Cardano has worked very hard to provide users with the best they can anticipate in the world of cryptocurrency, it still follows the same groove of poor consumer protection used by others. There is no single authority that is responsible for consumer protection.
All the decisions are made through consensus. This means that when an issue arises, there is no one to take complains to. This is made worse by the fact that cryptocurrencies are not regulated. Therefore, if you send cash to a wrong address, the money is gone forever. There is no way to cancel a transaction.
The closest that Cardano comes to forming a body for handling consumer issues is the Cardano Foundation. Here, the blockchain comes out open to indicate the roles of the foundation in supporting the cryptocurrency. However, it is still a separate entity that cannot take up clients issues and address them vividly the way a bank does. The foundation targets helping the development community make the cryptocurrency better and not receive complains.
Operating safely in the Cardano network
To put it plainly, Cardano leaves all users to be their own security in the network. You must, therefore, maintain utmost focus on making your ADA, your Cardano client and all associated components as safe as possible. Here are some useful tips that you can use to stay safe when operating on the network.
- Make sure to keep the Cardano client and wallet as safe as possible.
- Once you have selected the Cardano wallet, safeguard the private keys carefully.
- Designate a specific computer for all Cardano transactions to reduce the risk of attacks. The computer should always be updated to reduce the dangers of getting hacked.
- Be extra careful with the cryptocurrency exchanges you select to reduce the risk of getting hacked and ADA siphoned away.
- Make sure to always triple-check the public addresses when sending payments to avoid sending funds to the wrong people.
Illegal Activities with Cardano
Cardano was launched at a time when illegal activities with cryptocurrencies have become very many. It is not uncommon to hear ICOs (initial coin offering) being flagged off because they are scams. Many criminals prefer to use cryptocurrencies because they can hide behind the curtain of anonymity.
Since Cardano was launched, there has not been any reported case of related illegal activity. At the onset of 2018, the development team and Cardano Foundation indicated that their focus to strengthen the network against fraud and illegal activities are the biggest deterrents to illegal activities.
The development team also points that they are progressively learning from every illegal activity and working towards protecting the network. However, this does not mean that you are completely immune to criminals. Here are some great tips of avoiding falling into traps of scammers.
- Do not join any scheme that lacks clarity. For example, an ICO that is not associated to a clear project is likely to precipitate into a scam.
- Avoid buying ADA from anyone on the street. Indeed, even some cryptocurrency exchanges out there are scams.
- Only use the recommended ADA wallets because some wallets are malware.
- Join a vibrant cryptocurrency group that can help you look at every deal on ADA and other cryptocurrencies with a deeper assessment
Is Cardano Secure?
To succeed in the cryptocurrency world today, developers of a network must provide users with a guarantee of utmost security. People coming to use the network want to have the assurance that nothing can go wrong with their investment. Cardano Network design was anchored on the ability to provide better security to the network, users' information, and investment.
Before launching the cryptocurrency, the Cardano team took about two years studying and testing the different security features used in other networks. They resolved to create a new code from scratch that can guarantee users of greater security. This is the reason that Cardano has emerged one of the best cryptocurrencies in 2018. The main features that make Cardano network highly secure include;
- Advanced cryptography that makes it extra difficult to break into the network.
- A two-layered protocol that helps to allow users to deploy their own apps without compromising the system.
- A highly aggressive developer team that works extra hard to provide regular updates to guarantee users of better security.
Note! Though the Cardano is considered very secure, the risk of losing ADA when operating in the network is always there. You are particularly at a greater risk of losing Cardano at the exchange level. It is, therefore, important to take the role of securing ADA personal by protecting the private keys and keeping ADA in cold storage when not transacting them.
Is Cardano Anonymous?
Cardano is anonymous. The Cardano team understood that people want to have the assurance that their operations and funds can be moved as safely as possible when operating in the network. The sense of privacy gives users the assurance that they are free from third party seizures or even getting followed through regulations.
The Cardano network targeted to seal the loopholes reported in the Bitcoin network that demonstrated most transactions are not as private as espoused. It is still possible to follow and unmask users on the Bitcoin network. Guarantee users of greater privacy, Cardano uses advanced technologies and these tactics.
The Daedalus (the main Cardano wallet) allows users to generate arbitrary number of public addresses. This means that there is no way a person can follow back and try to crack the similarities in the codes. The codes show you are a different entity but still direct the ADA to the same wallet.
The cryptocurrency uses two layers in its operations. By separating the ledger of account values and the core reason for moving these values from one party to another in a different layer helps to advance the network privacy. The process is highly encrypted which makes it extra difficult for users to either follow or figure out users in different layers.
Every time that a user initiates a transaction, all the details are completely encrypted and confirmation done by randomly selected nodes. The selected node has to be trusted and can only access the public address as opposed to all the details about the sender, receiver, or specific details of transacting parties.
Has Cardano Ever Been Hacked?
The rising popularity and progressive growth of cryptocurrencies have made them a huge attraction in 2018. However, the popularity is not growing only to those with good intentions. Indeed, cybercriminals have a greater appetite for Cardano and other crypto assets. As technology used in blockchain systems advances, cybercriminals are also advancing their tactics.
Despite the increasing target on cryptocurrencies, no successful hacking has been reported in Cardano network at the beginning of 2018. This has been attributed to the advanced Cardano code that was developed from scratch with special focus on preventing hacking.
Note that though no cases of successful hacking have been reported on the network, it does not mean that there were no attempts. Besides, it does not mean that you are completely secure. Like other cryptocurrencies, you have to accept that an attack is possible. You are particularly more prone to attacks at the exchange level because Cardano does not have jurisdiction to third-party providers. Therefore, always be extra cautious when picking an exchange and only invest what you can afford to lose.
How Can I Restore Cardano?
The moment you enter the cryptocurrency world, it is important to appreciate that the danger of losing them abounds. The coins can be lost through hacking or even sending to the wrong address. Here are some great methods that you can use to restore ADA.
If you lost Cardano through hacking or sending to the wrong address, they cannot be restored. This means that they have changed hands and they belong to a different person. The irreversible nature of Cardano is a great trait but is also a major drawback when it comes to efforts to recover lost Cardano. However, if you lost Cardano in any of these scenarios, here is how to restore them;
- Scenario One
- Those who have lost Cardano by forgetting their private keys. If you lost the private keys to the Cardano wallet, you can still restore ADA. You only need to use the recovery seed phrase that the wallet generated when you first downloaded and installed on the personal computer. If you are joining the Cardano network for the first time, it is important to be prepared for risks ahead. Make sure to generate the recovery seed phrase and store it safely for use in case the original private keys get lost.
- Scenario two
- If you lost Cardano by losing the ADA wallet, it is still possible to recover the native coins. You only need to download another wallet and reconcile it with the Cardano network to restore the coins. If you had kept a backup of the Cardano wallet, you only need to reinstall it and update to feature the latest state of the public ledger.
As more people focus on entering the cryptocurrency world, you should protect the native coins at all costs. It is prudent to maintain a backup that can be accessed easily and reinstalled in the case of a loss. You should also generate and store the recovery seed phrase safely.
Why Do People Trust Cardano?
The fast-rising competition in the cryptocurrency world has forced people to make huge decisions on the platforms to use. In many cases, issues reported on the network such as hacking, scalability, and acceptance influence users' decisions to pick a cryptocurrency compared to another. Cardano network is winning trust from people who are convinced that it will soon take the trajectory like that observed in the Bitcoin cryptocurrency. Here are the main reasons why a lot of people have trust in the Cardano network.
- The Cardano network has comprehensively addressed the scalability issues experienced in other networks such as Bitcoin. The first Cardano settlement layer allows for scalability enhancement which means that the system can enhance its capacity to handle bigger transactions as more people join the cryptocurrency.
- The Cardano network is one of the most secure cryptocurrency networks. Unlike other cryptocurrencies that only use one or two layers of securing the clients' assets. Cardano is different. It employs the latest technology including multiple signatures and multiple scripting languages to help enhance the protection of the system.
- The cryptocurrency has been performing very well in the market. Though it is one of the youngest, its design, operation, and allure have made its value to grow rapidly. A lot of people are coming to the network which has made experts predict a projectile similar to that assumed by Bitcoin.
- The cryptocurrency has never been hacked. Many people want to get the feeling that the cryptocurrency of choice is going to provide extra security when working in the network. Because the cryptocurrency does not have a hacking history and its native asset (ADA) has not been involved in any illegal activities, there is great optimism for faster growth.
- Cardano is associated with top institutions and the best brains that people can think of in the market today. By making the cryptocurrency a research-based project, more people have developed greater interest because they are sure only the best can come from such brains.
- While other cryptocurrencies have strongly inclined towards offering anonymity and going against the grain when it comes to regulations, Cardano is a little different. The focus to help users operate within the law while enjoying all the benefits of cryptocurrencies has drawn a lot of interest and trust in the network. The operational design has helped to reduce the fear that looming laws could negatively affect the users.
- The Cardano network allows users to create their own rules and run them on the network. The second Cardano layer (Cardano Computational Layer) allows enterprises to set their own rules on the secondary platform. The Cardano Computational Layer makes it easy to integrate enterprises' design for success.
History of Cardano
The history of Cardano can be traced back in 2015 when the development team set out designing a new cryptocurrency. Charles Hoskinson started by assembling a team of professionals to embark on the lengthy process. They started by mapping the flaws in other cryptocurrencies and crafting new objectives to address them.
By September of 2015, the cryptocurrency code was ready. The development team launched an ICO (Initial Coin Offering) that ran between September of 2015 and January 2017. The sale raised $62 million and saw about 30 billion ADA vouchers sold. This gave users the opportunity to make the first shot in the new and highly promising cryptocurrency.
The Cardano cryptocurrency network was launched on 29th September 2017 after a successful closure of the ICO. The price of the cryptocurrency traded stably between launch and November before jumping by over 360%. The growth continued through the remaining part of 2017 to early 2018 where every ADA it is trading at %0.6.
As a young cryptocurrency, most features are currently being tested. You should, therefore, anticipate a lot of changes and enhancements as everything falls into place. The team has also indicated it will be announcing new partnerships that will shape the network operations.
Who Created Cardano?
Gardano is the first cryptocurrency that evolved out of scientific philosophy. The initial work on the cryptocurrency started in 2015 by Charles Hoskinson who is also a co-founder of Ethereum cryptocurrency. However, a lot of effort went into research that was done by IOHK (technology company) together with University of Connecticut, University of Athens, and University of Edinburgh.
It is important to mention Emurgo, a Japanese group, that hired IOHK to craft the Cardano network on a contract running 5 years between 2015 and 2020. By the close of the contract, EMURGO will become what ConsenSys (blockchain software technology company) is to Ethereum.
To make the cryptocurrency more comprehensive, the development team brought a unique Ouroboros proof-of-stake blockchain protocol. This involved roping the protocol developers Roman Oliynykov Roman, David Bernado, Alexander Russel, and Kiavis Aggelos.
The aim of the expanded development team was to have a tech team comprising of researchers, engineers, scientists, financial experts, and academicians. Their approach has made the cryptocurrency to be referred as one of the most refined digital currency in the market today.
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