In this article we seek to provide an introduction to What is ADA, a cryptocurrency on the rise that is a favorite among analysts and investors alike.
To answer what is ADA, we first need to introduce the Cardano project. As a blockchain network, Cardano is an extensive ecosystem with the native token ADA. Cardano takes pride in being one of the first pioneers of the proof of stake algorithm. And surely a successful one at that. It managed to successfully eliminated many of the issues related to crypto. It did an astonishing job dealing with Problems such as high gas fees, scalability and high transaction fees. During this process, ADA, gained immense popularity and rose through the ranks like a champ!
- First, Second and Third Generation of Cryptocurrencies
- The Cardano Project
- The Ouroboros Algorithm
- The Explosive growth in 2021
- Should I buy ADA?
- What Does the Future Hold for ADA?
- Where Can I Buy ADA
First, Second and Third Generation of Cryptocurrencies
With Bitcoin introduced in 2009, the cryptocurrency gained a great deal of popularity as an alternative for fiat money. It could be safely transferred through a decentralized network of computers who were rewarded for handling transactions. Therefore, an independent network of miners and investors came to form that was rewarding the miners as the backbone with bitcoin and motivating the investors with a bullish trend, a win-win case of comradery.
Ethereum came along in 2015 as a second-gen crypto platform. The goal was to achieve more efficiency and more diversity in services. It achieved better Scalability, mining efficiency, less transaction fees and a platform with smart contract capability. The network could automatically fast-track digital payments and execute agreements when the required conditions are met. As well as playing a crucial role for decentralized finance, Ethereum network is the fundamental platform for the non-fungible tokens (NFT).
The Cardano project launched in 2017. It was the third generation of blockchain networks. One that successfully dealt with some of the greatest challenges of previous generations. Issues such as high gas fees and scalability by introducing the Ouroboros, a proof of stake algorithm to mine blocks which will be further explained in the article.
In 2017, the Cardano project started as a third-gen open-source and public blockchain platform. ADA is the native token of the platform. It is Led by Charles Hoskinson, one of the co-founders of Ethereum. Cardano had a great emphasis on being future-proof by being peer-reviewed and methodically developed by academic experts in the field. Cardano views itself as the updated version of Ethereum. Moving towards building a connected and decentralized system and providing banking services to the unbanked.
As a consensus algorithm, the Ouroboros is a proof of stake model with a unique quality. Basically, a proof of stake algorithm allows the nodes with the highest amount of stakes to create the transaction blocks. However, to reduce network congestion as well as the gas fees, the Ouroboros divides physical time into epochs which are further divided into time slots. As for each slot, a leader is elected by other nodes for the responsibility of adding the block to the chain. There will also be a reserve slot leader for the time when the current leader is unable to create the transaction block.
A secondary group of stakeholders called input endorses will then further review the submitted transaction block. This secondary step will make sure of the validity of the transaction blocks. The input endorsers are also elected based on the amount of staked ADA tokens in the network.
many experts Consider the Ouroboros algorithm as a more elaborate proof of stake mining protocol. It requires a lot less energy compared to the proof of work and has the ability to handle up to one million transactions per second.
The Explosive growth in 2021
Ranked as the 5th cryptocurrency (by market cap), at the time of writing this article, ADA stands at about $1.77, with an approximately 6000% increase in price since being introduced in 2017. Yet for almost four years, ADA managed to fly under the radar fluctuating in a range of between $0.03 to $0.18. However, during the very first days of 2021, a bullish trend caused ADA`s price to skyrocket from $0.15 to $2.3 in less than five months. The sudden growth in popularity seems to stem from the emphasis on green coins, a trend which gained momentum in 2021. Yet with the great potential that ADA holds, the well-deserved growth in popularity and also confidence in Cardano`s capability helped popularize ADA furthermore.
Should I Buy ADA?
Considering the impressively solid Cardano platform for smart contracts and ADA being the native token of it, a vast majority of market analysts are in favor of ADA. According to Charles Hoskinson himself, the Cardano platform will soon support the non-fungible token (NFT) marketplace which will positively affect ADA. With all the advancements, Cardano is looking to become the leading platform for smart contracts and creating decentralized applications. On the other hand, investors should always consider the associated risks of their investments. since blockchain is still young and there are too many variables and unexpected events that can potentially have a strong influence on the market. All that said, amongst the endless number of altcoins, ADA has successfully triumphed and if a dominant majority of professionals believe it to be only a beginning for the Cardano project, ADA seems to be a good altcoin to hold.
What Does the Future Hold for ADA?
The Cardano project seems to have ticked all the right boxes as a platform. It not only provides stability, but has created avenues for continued exploration. Looking at the background, the emphasis on academic research and specific design principles surely provide a solid platform for growth. As for the future, the many partnerships and integrations will likely have a constructive impact on the platform as well. In that regard, many of industry professionals are of the belief that in 5 years ADA will reach to $100. As a green coin, ADA seems to be far superior when it comes down to energy consumption. With excellent scalability as well as low transaction fees, it seems to be a noticeable step above the rest. Despite the unpredictable nature of the market, ADA seems to be a good investment for holders.
Since the utilization of the blockchain network for decentralized finance, it has evolved towards greater efficiency in transactions. The Cardano Project is the tip of the spear as a progressive yet well thought out platform. It utilizes unique methods and academically engineered solutions that have successfully proven its reliability and potential for growth. The Ouroboros algorithm is an improvement upon the proof of stake protocol and holds a great deal of potential for future developments. All in all, ADA seems to have a bright future ahead. It will flourish even more than before with the much deserved recognition and growth in popularity in recent months.
Where Can I Buy ADA?
You can Buy ADA from hi.exchange and take advantage of our competitive rates, anonymity as well as 24/7 customer support. Our team of professionals will provide our customers with a secure and smooth transaction. Furthermore, at any point, we make sure to provide the most competitive rates possible to stay ahead of competition.