Though Bitcoin emerged in 2008, it took several years for the concept of cryptocurrency to take the lead in the global economy and trading. Today, you can hardly find a person who has never heard about crypto, as it’s everywhere, gradually substituting the traditional money and changing people’s perceptions about financial regulation. So, it’s high time to stay tuned to the crypto-trends, as new cryptocurrencies that nobody knows today may become another Bitcoin tomorrow. Don’t lose the momentum, you can also get rich with crypto coins, and the advice given by most experts is to take a closer look at newly emerging coins. Some of them may be one-day failures, while others are highly promising in terms of growth and returns, and one of them is definitely the Cardano token.
Speaking about Cardano, one should keep in mind that it’s not exactly a cryptocurrency; this is the name of the platform running the ada blockchain – a system used for mining the ADA cryptocurrency. Thus, the Cardano ICO is run by a Japanese platform using it for sending and receiving digital currency. The development of this blockchain was initiated in 2015, and in 2015 it officially saw the world, launched as a resource fully open for the public. So, should you become a Cardano miner? How to mine Cardano? What prospects does this coin have? Let’s find out everything known about Cardano thus far in this ultimate tutorial.
Since blockchain overall, and smart contracts in particular, is based on high-order math, the name of the new distributed computing platform discussed here also originates as a tribute to a famous Medieval polymath Gerolamo Cardano. And we can say that there’s much symbolism in this name, as besides being a genius physicist, mathematician, biologist, and the creator of the first cryptographic writing tool (the Cardan grille), Cardano was also a dedicated gambler keeping himself financially afloat with the help of games of chance. Thus, there’s nothing surprising in the fact that Charles Hoskinson, Ethereum’s co-creator, and the IOHK management gave this name to their new project, making ADA essentially the IOHK Cardano coin.
The Cardano blockchain functions under the guidance of a team of scientists and academicians specializing in the blockchain tech, so its initial purpose (just like that of Ethereum) was not profit-making, but practicality. Moreover, the uniqueness of Charles Hoskinson’s and IOHK’s Cardano is the existence of two distinct layers in the blockchain, one responsible for running ADA tokens, while the other one handles exclusively smart contracts and recognizes individual users (we’ll discuss layering and the specifics of each layer below).
The Cardona coin had a long path of emergence, and its creation is a great sign of smart contract platforms’ evolution with many lessons learned by Bitcoin and Ethereum, and many pitfalls and imperfections addressed to make more functional, flexible, and durable technology. This project was ambitiously referred to as the first blockchain emerging solely based on the scientific philosophy and research-driven approach, and the goals of its creation included improving the blockchain scalability, enhancing this technology’s security and governance, and ensuring smoother interoperability with traditional financial institutions in compliance with global financial regulations.
The initial entry of Cardano into the market via a crowd sale of the IOHK coin named ADA was already a success, bringing over $62 million to the company. The latest update currently functioning in the market is Cardano SL 1.3.0 launched in August 2018. The project is protected by the MIT license. The Cardano block explorer is openly accessible cardanoexplorer. com, and miners of Cardano use data about the addresses, transactions, epochs, and slots on the network by searching through this complete data repository.
Another unique feature of Cardano crypto is its use of a fundamentally new mining algorithm based on the proof of stake (PoS) principle. There were earlier efforts to use PoS algorithms in the cryptocurrency and blockchain area, but they all failed because of security problems. Only the Cardano team managed to solve that problem by offering a completely safe and stable stacking mechanism and PoS functionality.
Ouroboros is what indeed makes the Cardano system perfect and determines its principles of functioning. It is the algorithm defining ways in which the network’s nodes achieve consensus about the state of ledger. According to the principle of Ouroboros’s operation, nodes with a positive balance are referred to as stakeholders, and only they are authorized to run the Cardano protocol. Only slot leaders have the power of new block generation, and such leaders are selected from stakeholders. The process takes place as follows: the elected slot leader considers transactions of other nodes, compiles them into a new block, signs that block with his/her private key, and feeds the new block into the network. This principle of new blocks’ creation is quite similar to Bitcoin mining, but in Cardano, the slot leader is elected, and the decision on who mines, when this happens, and in which amount, is made only based on the PoS consensus.
Physical time runs differently in Cardano, with Ouroboros dividing it into epochs, with epochs further divided into slots. Slots are typically very short in duration (just some seconds), and every slot has its slot leader (SL). Every SL is authorized to produce one block during his stay in the SL role, but if the SL is offline during his/her right to do that, the opportunity of block generation is missed, and the slot remains empty. For the proper functioning of the Cardano blockchain, it is vital that at least 50% plus one slot in each epoch were filled with mined blocks.
While not all blockchains have tokens and function simply as technologies, Cardano does have one, and this is the Ada token. One Cardano token was initially valued at $0.041, and as of 2018, over 26 billion ADA was in circulation worldwide. The officially indicated maximum ADA supply is reported to be 45 billion. In September 2018, the coin’s value was estimated at $0.06 and the market cap constituted $1.7 billion.
Similar to the fascinating history of the Cardano name, the carnado coin called ADA also has an interesting story behind the scenes. Ada received its name from a 19th-century mathematician Ada Lovelace, the person who became the first computer programmer in the world. She was a daughter of a famous poet Lord Byron, so the first release of Cardano’s main net also paid tribute to him and got the name “Byron.”
Given the distinctions of Cardano from the traditional blockchains in which users can mine cryptocurrencies, a natural question may emerge, “can you mine Cardano?” That’s a hard question, since on the one hand, ADA coins cannot be retrieved via mining in the traditional sense. The reason for that is that mining as we know it takes place based on the PoW principle, so the transaction confirmations in Cardano are not done with hardware. The only tool for confirming blockchain activities in Cardano is the already owned amount of ADA coins. But here one may ask a natural question, “where to get those coins to become the Cardano member, and what will be the value derived from them?”
Thus, essentially, the process of PoW mining is replaced by the PoS process of minting ADA coins by the entire Cardano community. It takes place as follows:
Such a process of coin minting is truly innovative, and what is more, it is eco-friendly because there is no need to spend large amounts of energy and hardware for new coins’ creation.
Those who mine Cardano or acquire ADA coins as a trading investment should take proper care of storing them securely. To date, there is a number of Cardano wallets available online and in mobile/hard-drive versions. Thus, it’s up to the coin’s owners to select the method of ADA storage. We recommend considering one of the following:
Those who know a bit (or more) about the blockchain technology might understand perfectly well how far it has moved since its introduction in the form of Bitcoin in 2008. Thus, Cardano represents the third generation of blockchain technology. But to understand what it means for the entre tech area, we need to explore the evolution of blockchain step by step. Here are the main epochs:
What improvements does Cardano offer specifically in terms of scalability, interoperability, and sustainability? Let’s clarify in more detail.
So, what’s the innovation that Cardano brought about to the blockchain tech? There are many features making it different, for instance:
Since Cardano is a blockchain of an entirely new structure and content, its founders took care of explaining the purposes to the world. Much data about what is Cardano coin, how to get Cardano, and what it may be used for, can be found in the Cardano whitepaper. The major points included into it are:
These and many other features are logically embraced (or actively developed) in the Cardano network based on the analysis of past and current experiences of over 1,000 existing altcoin blockchains to make the system perfect. Moreover, an ambitious target of Cardano’s developers is to reach a consensus in terms of regulation so that the cryptocurrency world gets safer and more predictable, but without compromising the users’ value of confidentiality lying at the heart of the blockchain systems.
An interesting feature offered by Cardano creators for the convenience of this blockchain’s users and miners is that of Cardano explorer. This is an online service containing all data about operations in the Cardano blockchain, so it functions like a repository of all information open to any users for transparency purposes. What exactly can you do with this resource, and why is it regarded so useful?
According to the Cardano developers’ idea, this repository of data on the blockchain’s operations enables any user to find any needed transaction, address, time, and slot. To be more precise, the following data is available for each of the mentioned items:
So, what does the Cardano explorer do in technical terms? Does the availability of such detailed transaction, address, time, and even slot and hash data compromise the privacy and confidentiality of users? Not quite, as addresses are all anonymous, and there is no opportunity to link a specific user to his/her address unless they share that data with someone voluntarily. Otherwise, it is possible only to track these kinds of activity in the network without any identifying information of individuals.
As it was noted above, the Bitcoin system, though revolutionary as a concept, still had major flaws in terms of scripting language. Solidity is quite a popular programming language for blockchain, but Cardano’s creators still deem it too complex and resistant to the scalability of the resulting systems. Thus, they took a different tack and adopted a whole new approach to programming the Cardano system. The Cardano programming language, Simon, was specifically developed for this project by Simon Thompson and Simon Peyton Jones. Its benefit is assurance of secure financial engineering via breaking down of the financial transactions within the blockchain into their foundational components. This makes the programming of Cardano user-friendly and comprehensible, while at the same time offering it flexibility and scalability needed for a blockchain aiming at exponential growth.
Besides Simon, some aspects of Cardano are programmed with Huskell-based programming language Plutus. The benefit of this selection is the global reputation of Haskell as the securest programming language minimizing the number of scripting errors and adding robust platform security. Plutus is also a custom-developed programming script for connecting the Cardano CSL to overlay protocols, legacy financial systems, and special purpose servers. This script is generally purposed towards managing smart contracts and specifically geared towards fostering interoperability.
These programming efforts have been targeted at the development and maintenance of a Recursive InterNetwork Architecture (RINA) on which Cardano runs. This innovative computer network architecture is used as an alternative to the traditional TCP/IP protocols, and its benefits include mobility, service quality, and multi-homing enhancements without extra protocols such as RTP and UDP. Moreover, in the RINA, easier network administration may be conducted without the need to enact NAT or autonomous systems.
When we talk about transaction time or speed, we refer the speed it takes to complete a transaction. The speed of the cryptocurrency is important, especially when making payments. A high transaction speed translates to customer satisfaction and more business on your side.
When it comes to transactions in the world of digital currency, speed is king. In the physical world, you will see warnings telling you “speed kills.” However, in this world, it is the lack of speed, and not high speed, that kills. Moreover, the speed of any cryptocurrency varies and depends on several factors. Below are some factors that determine the speed of the cryptocurrency:
If you are familiar with Ethereum, you will notice that it had its own share of shortcomings that needed a remedy. That is why when Cardano designers created it, they intended to solve the problems Ethereum had. The Cardano transaction speed per sec is 257 transactions per second. This swiftness makes it one of the best and fastest speeds on the market. Through the consensus mechanism, Ouroboros Cardano can transact at a higher speed. Moreover, the average Cardano transaction time is five minutes with each transaction coming with a proof of legitimacy.
In this section of our coverage, we will show you the main differences between these two digital coins. This is crucial since even though the two are cryptocurrencies, they have their inherent and distinct features that make them unique. Cardano and Ethereum are decentralized blockchain application platforms. They are both very popular and utilize smart contracts. Moreover, they both are meant for app development and smart contracts. Below are ways in which they differ from each other.
Ethereum uses proof of work mechanism to maintain its network. Although the team behind Ethereum is currently in the process of developing it to proof of stake. The new Ethereum algorithm attempts to solve most of the challenges it has and before full implementation of the POS. But until then, Blockchain will use POW/ POS.
On the other hand, Cardano uses proof of stake and utilizes the Ouroboros algorithm. This way, it is easy to ensure that the slot leaders create verified blocks. In Cardano, if you hold a coin you can become a slot leader without considering how much you own. The network needs to select a coin through the Satoshi algorithm.
Ethereum uses the Solidify programming language. The Ethereum team specifically created Solidify to build smart contracts that run on the Ethereum virtual machine. Inversely, Cardano uses the Haskell and Plutus languages. Haskell programming language has been in use for decades. However, Plutus is a functional language the Cardano team created recently.
The two platforms mostly differ in the architecture. Cardano has two layers which give the user more control and privacy as you execute your smart contracts. The layers separate the account value ledgers. The Cardano settlement layer takes charge of the value ledger while Cardano computational layer takes care of the transactions.
On the other hand, Ethereum has one layer while the second solution is in the process. Plasma has child block chains, which facilitate transactions without taking up bandwidth on the Ethereum chain. In the future, Ethereum will introduce sharding to help with scalability issues.
Other main differences include market cap and pricing. The other difference is that Ethereum has been around for more than 4 years while Cardano came into the market in 2017. Cardano also has a large coin supply with a maximum of 45 billion while Ethereum doesn’t have a maximum token amount. Ethereum, however, has more than 100 million coins in circulation.
In this section of our post, we will show you briefly how Cardano differs from Bitcoin, the world’s most popular digital coin. Cardano uses smart contracts, unlike bitcoin. While bitcoin has been in the market for a while, Cardano is still new to most digital currency investors and enthusiasts. The remaining paragraphs below will outline the main differences between these two platforms.
Regarding scalability, Cardano uses proof of stake while bitcoin is not interested in POS. Cardano uses consensus algorithm to determine who completes the next block in the chain. Proof of stake rewards users according to what they are holding. Moreover, the Ouroboros concept powers Cardano, which enhances the security of the platform.
Bitcoin cannot handle complex data transactions and process basic transactions. On the other hand, it can process complex transactions through its multiple layers. Cardano multiple layers enable its use as a currency and a storage facility.
As a platform that facilitates the transfer of cryptocurrency, Cardano allows the transfer of digital funds and houses the computing layer that handles smart contract development. This duality of functionality means it can run a decentralized application including Cardano staking. In this case, Cardano staking is the consensus algorithm that will support the Cardano platform.
Cardano uses an algorithm known as Ouroboros. This algorithm determines how each node reaches the state of the ledger. Ouroboros Cardano is the most used and preferred consensus mechanism for Cardano. Here, proof of work mechanism is not preferred because of the high-energy consumption. One of the examples of proof of work is Bitcoin, which uses proof of work and therefore consume high levels of energy that could power more than 6.5 million people in America.
As we indicated above, in the world of Cardano, stakeholders are nodes that have a positive stake. Inversely, slot leaders are the nodes that a user selects to form a block. During Cardano staking, a node generates a new block based on its economic stake in the network. Nodes are selected to hold blocks depending on the number of coins they hold. The more Cardano coins a node will hold, the higher the chances of being selected to generate a block, and that role is known as the slot leader.
The Ouroboros protocol divides time into epochs and each epoch is further divided into slots. Each slot will last for approximately 20 seconds. The slot leader will only produce one block and if the slot leader fails to make a block due to the absence of network, then the slot loses the right to produce a block and will have to wait to be selected again.
The slot leaders play an important role in the Ouroboros protocol. Slot leaders are chosen from a group of stakeholder nodes, where those who hold more than 2% stake are able to participate in elections. The stakeholders who are eligible for electing are known as electors. During the current epoch, the slot leaders for the next epoch are elected and they cannot be changed. A stakeholder node can, however, be elected as a slot leader for more than one slot during the same epoch. With Cardano staking, any stakeholder node have the chance of becoming a slot leader as long as it possesses more stakes.
The major issue that Cardano developers faced when creating the blockchain running on the PoS algorithm is ensuring of the LS selection in an unbiased manner. To achieve that, the system incorporates the principle of multiparty computation (MPC) that is responsible for random, fair selection of leaders. In the MPC, each elector participating in the process conducts coin tossing operations and shares the results with other participants. Thus, as a result, random generation of election outcomes is undertaken by each stake maker, but the final outcome is a common agreement on the same value.
The first step of SL election is called the commitment phase during which each elector generates some secret, random value. After this is done, electors issue commitment messages containing their encrypted shares and a proof of secret. Each commitment has to be signed with the elector’s individual private key and contain a timestamp of its production. Finally, electors send their commitments out to all other system users, so each elector gets the commitments of all others.
The second election stage is the reveal phase. As the name suggests, this is the time when electors open all commitments to retrieve the secret. All openings are inserted into the current Cardano block and form a part of the system.
As soon as electors possess both the commitments and the openings, it’s time for the final stage – the reveal phase. At this stage, all participants publish them and out of the matching commitments and openings, a seed is generated in the form of a randomly generated string of bytes. The seed is sent out to all electors and is applied for enabling the Follow the Satoshi (FTS) algorithm. The algorithm was called to pay tribute to the first blockchain creator, Satoshi Nakamoto, since the smallest piece of the BTC system is called “Satoshi.” In Cardano, such smallest piece is called “Lovelace,” and the FTS algorithm randomly selects a Lovelace in the list of stakes; the owner of that coin is appointed as an SL. Thus, it is evident that the more coins you have, the more chances for being selected as an SL you possess in each election process.
Cardano staking has a reward system in which the slot leaders who use their computational resources to get new blocks enjoy rewards. However, fees and incentive scheme for Cardano are still under construction.
Cardano calculator is used to calculate the profit that you were likely to make if you have invested in Cardano. It's important since it helps you analyze the return on investment on Cardano ADA.
How Cardano Profit Works
The profit calculator uses simplified mathematical principles to calculate the return on investment. It picks the historical Cardano price from the database and compares to the current price and then calculates the profit or loss that could have been made. The return on investment is calculated by dividing the amount today by the amount invested and multiplying by 100 to get the ROI. You can confirm the price of the Cardano using the Cardano Price Prediction. Moreover, various algorithms on the historic price determine the given prediction.
Cardano is a network with an intense feedback loop with its community, so a brief Cardano review of its social media activity has shown that its users are constantly active in the online resources like Reddit. So, it is possible to find much valuable information, recent updates and latest news about the network, and some other helpful links and stories in Reddit. Let’s take a closer look at the Reddit of Cardano coin.
The Cardano community at Reddit is very active; there is a set of rules that the discussions’ moderators have designed, which ensures that the bulk of information you’ll find there will be relevant and topical for people dealing (or only considering) Cardano. A popular Reddit thread is that of Cardano Daily Discussion in which all things related to the system may be asked about and discussed.
Hottest issues touched upon thus far in Reddit include:
Moreover, Reddit also hosts some interesting news about Cardano and welcomes their discussion by the users, such as:
There are many resources dedicated to the Cardano ADA review, especially those dedicated to one-year anniversary of its presence in the blockchain market. The estimates of ADA’s one year of presence are very optimistic, with it ranking the 9th largest cryptocurrency in the world right now, with its market cap of $2.1 billion of circulating coins. Moreover, the Cardano forum launched in November 2017 already has over 8,800 users, while the number of Cardano’s followers on Facebook exceeded 27,000. The largest Cardano community is on Reddit, with over 68,000 active participants, while the number of Twitter followers is over 125,000.
Besides much helpful information on Reddit, those who wish to learn more about this cryptocurrency may visit the Cardano coin wiki. This is a constantly upgraded collaborative resource containing general data about Cardano, the Cardano coin ADA, available Cardano wallets, the current changes of Cardano price, and brief contents of the Cardano white paper. Other data for reference on the Cardano project includes open information about its investors and the Cardano roadmap. Thus, it may be quite informative to study the latest news and data on this project in such collaborative communities as Wiki and Reddit, as they always contain recent information and first-hand user experiences and discussions.
So, now you might be well informed about what is Cardano cryptocurrency and why Cardano is the technology of the future. It is hard to say what the future holds for Cardano, since the crypto-world is very unpredictable and volatile. Nevertheless, one thing is for sure – Cardano is fundamentally different from many current blockchain projects initiated for fundraising and profit. Though ADA is also traded and rises in value, the initial purpose and core philosophy of Cardano goes far beyond profit-making. It is a science- and research-based platform of a new generation offering much useful information about technical progress of blockchain; it is quite stable and promising in terms of security, so the prospects of Charles Hoskinson’s Cardano both in terms of profit and in terms of pushing the boundaries of technical blockchain improvement are very optimistic.