Interesting facts about Cardano (ADA)

Cardano has integrated innovative features from the moment it was launched on the market. It is a third-generation blockchain that wants to improve the shortcomings of previous platforms. The man behind the creation of Cardano is Charles Hoskinson, who was previously a co-founder of the development of Ethereum. Before its launch, Cardano went through academic research to integrate the best means to thrive and become a leader in the security and decentralization of blockchains. 

The native token of Cardano is ADA, which, thanks to the features of the blockchain, benefits from great scalability. This is why transactions with ADA are fast and have low gas fees. Thanks to this, the native token of Cardano can gather the attention of a larger audience. If this happens, Cardano will increase its demand, which will also impact its value. The ADA price prediction shows that this cryptocurrency can have a bullish outcome. In that case, the value of ADA could soar. 

In this article, we will discover more about Cardano, so keep reading. 

The function and purpose of Cardano

Cardano's purpose was to provide great longevity, reliability, and scalability. Among its main functions are executing smart contracts and hosting transactions. In addition, Cardano is an interoperable platform that communicates with other blockchain platforms. 

Cardano is also decentralized, meaning that it doesn't rely on a central authority or entity. Instead, it focuses on a network of computers or nodes that maintain the platform. Cardano's blockchain is transparent, and users can check transactions when they want to verify data. 

Cardano uses a Proof-of-Stake (PoS) consensus mechanism and a pluggable architecture

Some of the most popular consensus mechanisms are Proof-of-Work (PoW) and Proof-of-Stake. Between the two of them, the PoW uses a bigger computational power. Because of this, the cryptocurrencies that operate with this model have been condemned, as they didn't consider more sustainable solutions. However, Cardano has prioritized integrating an eco-friendly and efficient consensus mechanism, which is why it uses Ouroboros, a Proof-of-Stake algorithm. By staking their digital coin, stakers can receive rewards in the form of ADA coins. 

Cardano has a pluggable and layered architecture. This feature makes Cardano greatly flexible and adaptable, which is why it can integrate new capabilities and features quite easily. Cardano also has some modular and composed parts, which prevent this platform from being affected when making updates. Thanks to this, Cardano can experiment and integrate many innovations, which is not really possible in other blockchains. 

The verification process of smart contracts

Cardano sets itself apart from other cryptocurrencies because it uses formal verification for its smart contracts. This verification ensures that the code is secure and doesn't contain errors or flows. Thanks to this, Cardano's smart contracts are exceptionally safe and more resistant to attacks. With it, Cardano ensures the stability and functionality of the platform, even though it constantly improves through various functions and features. 

Cardano tokenomics

The tokenomics of Cardano are also interesting features, the native token being ADA, which is used to execute smart contracts and pay transaction fees. ADA has a capped supply of 45 billion tokens, which maintains scarcity. When ADA was dealing with the initial distribution back in 2017, around 31 billion tokens were put on sale, and the money raised from there funded the development and launch of the platform. Over the years, the value of ADA has fluctuated, as it happens with all cryptocurrencies. Digital coins are highly volatile, and because of this, it is important to research them well before investing in them to reduce the chances of potential losses. 

Cardano has various use cases

Cardano is a good option to add to your portfolio, as it has various use cases besides transacting with its native token, ADA. For example, Cardano can be used for decentralized finance (DeFi) because it can enhance the transparency and fairness of the financial system. Another great use case of Cardano is that it can be utilized for smart contracts and dApps. 

Cardano's community

Cardano has the support of a strong community that is always there to help Cardano reach new heights that no one expected. In front of the development team of Cardano is Charles Hoskinson, who leads more than 200 developers and researchers who are making Cardano go through continuous developments. 

Besides the development team, Cardano also has a strong community that includes investors and crypto enthusiasts who love its ideas. This is why they have promoted Cardano offerings and are involved in its development. Additionally, the community can participate in the decision-making process for Cardano and its governance with the help of the Cardano Improvement Proposal (CIP). 

Cardano's collaborations and partnerships

To grow continuously, Cardano has made its goal of partnering with various organizations, which has helped it be in the spotlight. One notable example of partnership is with the Ethiopian government, where Ethiopia started to use Cardano to improve students' education and boost their performance. The University of Malta also considered this approach, which relies on Cardano's platform for an academic credential verification system. New Balance has also formed a partnership with Cardano and uses its blockchain to track product authenticity. 

Conclusion

Numerous interesting facts about Cardano place this platform in the spotlight. Cardano was developed by Charles Hoskinson, who also participated in the creation of Ethereum and, seeing its shortcomings, wanted to launch an improved option, which resulted in the idea of Cardano. 

Besides representing an important blockchain, Ada is also a strong digital currency and among the first 10 cryptocurrencies by market capitalization. Even though the crypto realm is home to numerous digital coins, ADA has still managed to represent a viable solution for users, thanks to all its strong points. If it maintains the same position, then ADA will surely have an upward trajectory in the future, where it can cater to an even larger audience.