How does Cardano work?

Cardano is a scientific blockchain designed to run smart contracts. Listed as “ADA”, it is currently in the eighth position of the main cryptocurrencies by market capitalization . Here is everything you need to know about this coin. Let’s go there.

What is Cardano?


  • 1What is Cardano?
  • 2How does Cardano work?
  • 3How much does Cardano cost?
  • 4Cardano Quote
  • 5What is the future potential of Cardano?
  • 6The Cardano community

Cardano is a “decentralized public block and cryptocurrency project”, so nothing new when it comes to cryptoeconomics, “yet another currency”. Cardano is a smart contracts platform, and it works in a similar way to how Ethereum works . Although it is not an Ethereum clone , it is designed to run financial applications. The Cardano blockchain runs on a scientific philosophy that underpins it all. Academic researchers and engineers are working together on its development, hoping to produce a smarter, faster and stronger blockchain for the user.

By applying technology principles from the aerospace, banking and engineering communities, Cardano aims to balance user privacy needs with regulation, in the hope that “… regulated computing will bring greater financial inclusion by providing open access for all. to fair financial services ”. Cardano is being built by three key organizations. These are:

  • Cardano Foundation : Existing to develop Cardano, educate users, and to study and propose regulation of the crypto economy.
  • Emurgo : Technology incubator and research center. They provide investment to new companies.
  • IOHK : Financial engineering company hired to help work on Cardano.

With the support of these great companies, Cardano is a very professional and polished product. The Cardano Settlement Layer GitHub project contains more than 16,000 commitments from 91 different contributors. The well-organized project is packed with questions, bug fixes, and new feature implementations.

How does Cardano work?

Cardano uses a proof-of-stake consensus algorithm called ” Ouroboros “. This is like other Proof of Stake networks but safely operates at the forefront of everything you do. This is everything one would expect from a scientific blockchain, but what does this actually mean?

More details on Ouroboros can be found in the Ouroboros whitepaper. This not only outlines the Proof of Stake implementation, but goes into detail regarding security “… this is the first blockchain protocol of its kind with rigorous security analysis.”

The Cardano Foundation and partner collaborating companies are developing an outstanding modern blockchain, with academic reviews and transparency at the center of all their work. Applying the same principles used in scientific and academic research, the results should, in theory, be of higher quality than those of competing blockchains.

Blockchain and software development company FP Complete conducted an independent third-party audit of Cardano’s codebase and processes between December 2017 and February 2018. These contractors continue to conduct regular audits, and is public so you can read the initial audit report .

This audit uses a traffic light rating system. The green tasks are those that are well executed, the yellow ones are problems or potentially faulty processes and the red ones refer to confirmed defects. There are only two red flags in the entire project, which pertain to code management, lack of regression testing, and continuous integration – any testing that fails may go undetected quickly. Both issues are related to software production, and resolutions for both are under development.

Unlike many other projects, Cardano did not start with a white paper, but with a collection of best practices, outlined in the Cardano philosophy . There are many principles outlined here, but the summary is simple. Cardano aims to learn from the mistakes of thousands of other crypto projects and develop the project in line with best practices in computer science, engineering, finance and science.

How much does Cardano cost?

Cardano uses the ADA token. There are approximately 31 billion possible ADAs. The current price of an ADA is $ 0.076, but this price has been extremely volatile in the past, like most cryptocurrencies. On January 4, 2018, ADA reached its all-time highest price of $ 1.33. You have never seen such a high price since then, and the current price represents a decrease of about 94%.

As Cardano is currently ranked 8th out of the top cryptocurrencies by market capitalization, $ 1.9 billion, it is available to buy on a large number of stock exchanges. It is not supported by Coinbase, but you can buy it on various exchanges that appear in our guide to the best cryptocurrency exchanges. This includes exchange giants Binance and Bittrex.

If you are looking for a wallet to safely store your ADA, then Daedalus is the wallet for you. Although it does not support any other cryptocurrencies at the moment, compatibility with Bitcoin and Ethereum is about to arrive. This wallet allows you to keep control of your private keys, and it is open source, with the code freely available on GitHub .

Cardano quote

What is the future potential of Cardano?

The future looks very promising for Cardano. With a world-class team, responsible governance, and leading peer-reviewed ethics, the academic approach will pay dividends for the project, the blockchain, and the ADA token. Taking such a stance ensures that the product and the community are rock solid. This may mean that developments take a little longer than with other less cautious projects, but who wouldn’t prefer things to be done “right” the first time and take a little longer, than “quick and dirty” jobs. hacking?

There is a very strong interest in Cardano. The community raised the price to more than a dollar in less than a month, and with more than 140,000 followers on Twitter, 21,000 on Facebook, and 69,000 Reddit subscribers, the Cardano Foundation is followed by a growing number of followers.

The Cardano community

If you want to join the Cardano community, you have many options. If you want to contribute or research the code, you can do so in the GitHub repository. Or, take a look at these other communication options:


by Abdullah Sam
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