ADA: New Type of Currency from Cardano

ProductJan 28, 2022
ADA: New Type of Currency from Cardano

Cardano is one of the most well-known crypto projects. It aims to solve Ethereum’s high fees, slow speeds, and the proof-of-work algorithm problems with its consensus protocol that offers a different perspective on transactions and commissions. Cardano has its cryptocurrency called ADA.

History and Objectives

Cardano is a decentralized and open-source blockchain platform launched in 2017 by Ethereum co-founder Charles Hoskinson as an alternative to Ethereum. Hoskinson left the project due to disagreements with Vitalik Buterin over the project’s future. He also saw growing energy use and rising costs of the Ethereum blockchain as the main drawbacks of the proof-of-work algorithm (PoW) that the ecosystem was relying on. Cardano aimed to solve these issues with Ouroboros consensus protocol, the project's proof-of-stake blockchain (PoS).

What Is so Special About Cardano?

Ouroboros consensus protocol differentiates Cardano from other proof-of-work blockchains like Bitcoin. It uses a proof-of-stake algorithm considered the first blockchain protocol based on peer-reviewed research.

Ouroboros ensures the security and sustainability of the blockchains by combining unique technology and mathematically verified mechanisms. Cardano positions itself as the first blockchain platform developed out of scientific philosophy.

Security

Similar to Bitcoin, Cardano relies on an honest majority, the requirements of Outborous protocol to function normally. To take over the system, attackers will have to control 51% of ADA’s volume in circulation, no matter if they are traded or staked. At the moment, 73.15% of all ADA coins are staked, making the attack possibility statistically small.

Development

Institutions responsible for Cardano’s development are Cardano Foundation, IOHK (Input-Output Hong Kong), and Emurgo (the sister company of IOHK). Right at the beginning, Cardano’s founders published a roadmap outlining the stages of the project’s progression.

  • In the first stage, Byron, the primary architecture, was created, establishing the protocol's basic features and integrating the Daedalus wallet (IOHK's official desktop wallet for ADA).
  • The second stage, Shelley, brought a higher degree of decentralization, and the third, Goguen, implemented smart contracts within the network.
  • The fourth stage, Basho, scales the blockchain and enhances the network's performance and stability.
  • The fifth stage, Voltaire, will be the final one. The project will transform into a fully autonomous network, giving all the responsibility for Cardano's future to the community.

ADA Coin

ADA is a native Cordano coin, currently holding the 6th position in the market cap ranking. The currency is essentially a stake in the project that can be bought and sold. In the future, ADA will become a governance coin, and its owner will be able to participate in Cardano’s development through voting on changes actively.

ADA Coin Price Change

At the beginning of 2019, the Cardano price was only $0.04 and stayed at this level right until March 9, when it slowly started to rise, reaching $0.05. In December 2019, ADA’s value was even lower than at the beginning of the year, $0.03, according to CoinMarketCap.

During its four-year existence, the ADA price experienced a rise and fall, and on May 24, Cardano became the fourth-largest cryptocurrency by market capitalization, reaching a $45.6B cap. Cardano’s development started in 2015, and in 2017 it came to the market, going from $0.02 to $1.07 in January 2018. However, later in 2018, the Cardano price was slowly falling, and in December 2018, the ADA price reached $0.047, losing 93% of its value.

Cardano Price Chart. Source: CoinGecko
Cardano Price Chart. Source: CoinGecko

During May 2021, Cardano's peak value was $2.46 (on May 16), with the lowest being $1.06 (on May 23). Today, ADA is worth $1.65.

Use ADA as Collateral for Crypto Loans

You can loan any cryptocurrency from CoinLoan by providing ADA collateral. The approval process is free and automatic, loan periods and LTVs differ, and final conditions depend on your choices. Sign up to get a loan approval today.

Use ADA to Receive Interest

You can hold your funds on CoinLoan or make them work with the Interest Account option to generate extra earnings. With the CoinLoan Interest Account, you compound interest on ADA and can unstake funds at any time. Interest Account works just like the bank savings account but offers much better rates. To start using it, simply deposit ADA into CoinLoan. At the moment, we offer 7.2% APY on the ADA coins with full CLT staking. Sign up to start earning today.

How to Buy ADA on CoinLoan Exchange

You can purchase ADA on our Crypto Exchange with fiat and crypto. We offer several exchange pairs, including BTC/ADA and ETH/ADA.

Disclaimer:

The information provided by CoinLoan (“we,” “us,” or “our”) in this text is for general informational purposes only. All investment and financial opinions expressed by CoinLoan in this text are from the personal research and open information sources and are intended as educational material. All outlined information is provided in good faith. However, we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information in this text.

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