Buzz
Following the success of Bitcoin, the virtual currency market witnessed the emergence of various coins, including popular names like Ethereum, Litecoin, and Ripple Labs. A common thread among most of these coins is their reliance on blockchain platforms for conducting transactions and other operations.
Cardano, often hailed as the '3rd generation Blockchain,' inherits its legacy from the preceding 2 generations, Bitcoin and Ethereum. In this article, Mytour provides an in-depth introduction to the cryptocurrency Cardano.
What is Cardano?
Cardano functions as a smart contract platform, akin to Ethereum, with a primary focus on security through a layered architecture. Described as the '3rd generation Blockchain,' it is touted as the world's first blockchain project to undergo a peer-reviewed assessment.
Additionally, the platform utilizes a unique programming language, Haskell, a functional programming language.
How does Cardano operate?
The Cardano platform is constructed with a layered structure, comprising two distinct layers. This design allows smart contracts on the platform to be more flexible, enabling investors to fine-tune transactions and privacy settings for each contract.
Cardano Settlement Layer (CSL)
The Cardano Settlement Layer (CSL) serves as the platform's first layer, functioning as a ledger. This layer operates as a cryptocurrency built from the Ouroboros Whitepaper, a proof-of-security protocol developed by Aggelos Kiayias.
CSL utilizes a consensus algorithm to generate new blocks and confirm transactions. This layer includes:
- 2 script languages:
+ 1 for establishing transfer values.
+ 1 for enhanced support of overlay protection.
- Sidechains for linking to other ledgers.
- Multiple signature types, including Quantum Resistant signatures.
- Multiple user-grade assets.
- Scalability, including system expansion with increased investor participation in transactions.
Cardano Computation Layer (CCL)
The Cardano Computation Layer (CCL) contains transaction-related information. Because the computation layer is separate from CSL, traders can create different rules when evaluating transactions.
Cardano developers are working on a new programming language, Plutus, to enable smart contract development based on CCL. CCL also supports Solidity, the programming language used in Ethereum smart contracts.
To support developers, Cardano also includes a Plutus reference code library, available in dapps. Additionally, the team is developing tools for code verification and improving code assurance.
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KMZ Sidechain
Cardano supports sidechains based on the new protocol by Kiayias, Miller, and Zindros (KMZ). The KMZ sidechain protocol allows the secure transfer of funds from CSL to CCL or any blockchain. With this protocol, ledgers adhering to specific regulations can interact with CSL without sharing sensitive, secure data.
Daedalus Wallet
Daedalus is an open-source wallet developed by the Cardano development team. Essentially, the wallet supports various types of cryptocurrencies, including Bitcoin and Ethereum Classic.
ADA Token and Ouroboros
ADA is a cryptocurrency created for payments and transactions on the Cardano platform.
The Cardano development team states that approximately 45 billion ADA will be created. These new coins access the ecosystem and transaction nodes through the Ouroboros Proof-of-Stake (PoS) consensus algorithm.
With this protocol, the platform generates new blocks in the blockchain and verifies transactions. When the Follow the Satoshi algorithm selects the coin a trader holds, they become the leader and issue new blocks on the network.
Nodes automatically perform this process, eliminating the need for investors to verify each transaction traditionally.
Transaction Fees
ADA transaction fees are calculated using the formula below:
Transaction Fee = a + b * size.
Where:
- a is a constant equivalent to 0.155381 ADA.
- b is a constant equivalent to 0.000043946 ADA/byte.
- size is the transaction size measured in bytes.
Thus, the minimum transaction fee that traders must pay is 0.155381 ADA, and it increases by 0.000043946 ADA for each byte of transaction size.
Roadmap
Cardano was established in 2015 by Charles Hoskinson, a co-founder of Ethereum.
The trading platform is a collaboration and development effort of three organizations, including:
- Cardano Foundation
- Input Output Hong Kong (IOHK)
- Emurgo
The non-profit Cardano Foundation oversees the project, supporting and developing the Cardano ecosystem.
IOHK is a blockchain engineering company, responsible for the practical project development, and finally, Emurgo supports building platform applications for Cardano. The development team raised approximately $63 million after completing the ICO.
Roadmap
Cardano's roadmap is divided into 5 distinct phases, including:
- Byron: This is the current phase of the platform, involving the development of the initial network and additional features like the Daedalus wallet.
- Shelley: In this phase, the Cardano network becomes fully decentralized, and features include delegation.
- Goguen: This phase introduces an additional virtual machine called IELE, similar to Ethereum's Virtual Machine (EVM). Additionally, the platform will add language frameworks for future blockchain technology.
- Basho: The platform expands, addressing security issues and increasing transaction volume. Furthermore, Ouroboros Praos, an improved protocol from the initial Ouroboros protocol, is deployed in this phase.
- Voltaire: In this final phase, Cardano will implement a Treasury model, providing a self-sustaining ecosystem for the platform.
Buying ADA
Investors can acquire ADA on several major exchanges. Binance has the highest ADA trading volume among exchanges, supporting ADA trading with Bitcoin and Ethereum.
To purchase ADA on exchanges, investors first need to buy Bitcoin or Ethereum for the transaction. GDAX and Gemini are two excellent exchanges to initiate this process.
Additionally, ADA will soon be available through the ATM network in Japan.
Storing ADA
Currently, investors can store their ADA coins in the Daedalus wallet, available for Mac and Windows. Mobile wallet versions for Android and iOS will be released soon. Ledger is also collaborating with third parties to support ADA in their products.
In this article, Mytour has introduced you to the cryptocurrency Cardano. Additionally, readers can explore other articles on Mytour, such as how to mine Cardano, to learn more about Bitcoin SV cryptocurrency.
