Pierre El Sokhn

Cardano (ADA) Cryptocurrency

What is Cardano & Cryptocurrency?

The Cardano is an open-source blockchain for creating and running smart contracts and many
different de-centralized protocols. The Cardano project is started in 2015. Input-Output Hong
Kong (IOHK) is a company that is behind the development of Cardano. and It is owned and
managed by Charles Hoskinson, co-founder of Ethereum.
instead of copying other blockchain’s code, IOHK has developed its own new blockchain, and its
co-founder Charles Hoskinson considers Cardano is a 3rd generation blockchain, as Bitcoin is in
the first place and Ethereum is in second.
The mission of Cardano is to establish a blockchain that can perform much more effectively than
older blockchains like Ethereum, this means that it should process less costly and faster
transactions. cardano ada cryptocurrency

Is Cardano and ADA are same?

The general public quite often thinks that Cardano and ADA are exactly the same, but, there is a
bit of a difference. Cardano is nothing but a blockchain that allows people to do transactions, and
ADA coin is just a cryptocurrency.
Cardano launched its digital currency in 2017, called ADA, Ada Lovelace was a lady that
presented a machine algorithm for a computer like “Analytical Engine”, and she was the world’s
first computer programmer that’s why Cardano’s cryptocurrency name is ADA. The Cardano
network itself is named after Italian polymath Gerolamo Cardano.
Cardano ADA is one of the most well-known cryptocurrencies that are preferred and long-lasting
with its emerging features. Its ADA coin is placed comfortably when you look at the top ten
cryptocurrencies rated by marketplace capitalization. From the date of its launching, it’s actually
been in the top ten cryptocurrencies. It’s in seven places after Bitcoin, Ethereum, and Binance
Coin today. ADA coin was in the top three only a few weeks ago because things change quickly.

How Does Cardano Work?

The Cardano blockchain is developed into two different layers. the first layer is the Cardano
Settlement Layer (CSL) and the second one is the Cardano Computational Layer (CCL). These
layers differentiate Cardanos from other blockchains. For example, Ethereum works on a singlelayer architecture that faces network rush, slow speed of transactions, and high fees of gas.
Cardano definitely overcome these issues by using CSL and CCL.
The Cardano Settlement Layer (CSL) provides p2p transactions and allowing to generate new
blocks by using a proof-of-stake consensus algorithm. on the other hand, The Cardano
Settlement Layer (CSL) empowers the computational needs of the blockchain and enables the
feature of executing smart contacts. This feature truly separates itself from other blockchains.

How Are ADA Coin Transactions Verified?

Cardano is also a decentralized platform just like bitcoin and Ethereum which means it is not
managed or controlled by a single authority and the Cardano network is operated by miners. it
utilize different models which are called “Ouroboros”. The Cardano ADA verifies transactions
using a proof-of-stake consensus algorithm:
 People who want to help validate transactions are called validators.
 Validators must freeze some of their ADA coins, which is called the “Stake”.
 Once a validator helps verify a transaction, they receive additional ADA
cryptocurrency as a reward.
 The higher the stake, the more chance a validator has of receiving the reward!
 The amount of coins they receive is based on how much “stake” they have.
This method is much more efficient and eco-friendly than Proof-of-Work since it calls for less
electricity, which means that transaction fees tend to be lower also.

The Cardano’s Scalability

In the world of digital currency, scalability means how many transactions in a blockchain can
process in a specific amount of time and it is described by “transactions per second”.
Blockchains like Bitcoin and Ethereum have huge difficulties with scalability, they could process
a very limited to your amount of transactions. Bitcoin can only process 7, while Ethereum
averages a maximum of just 15. This time again Cardano has an edge because the Cardano
blockchain can process 257 transactions per second, which is greatly more than Bitcoin and