What is ADA and why it’s usually called Cardano ADA, is that the same thing?
ADA is basically a Native Token of Cardano and it’s been named after the 19th-century mathematician who has been considered the first computer programmer – Ada Lovelace. Since Ada is a digital currency (cryptocurrency) anyone can use it as a secure exchange of value anywhere in the world without any middleman (a third party) to mediate the exchange. Thanks to the Cardano blockchain, every transaction is immediately and securely, permanently, and transparently recorded on the chain. One of the great perks of ADA is that any holder also holds a stake in the Cardano network. While storing Ada in a wallet, it can be delegated to a stake pool which will earn you rewards, and it will also contribute to the network health (successful running of network) or simply pledged to a stake pool with the purpose of increasing the likelihood of receiving rewards within a pool. On top of that, ADA can already be used in a variety of applications (dApps) and services on the Cardano platform. Cardano is a decentralized proof-of-stake (PoS) blockchain designed with the idea of being a more efficient alternative to proof-of-work (PoW) networks. Cardano has been developed to overcome scalability, sustainability, over usage of energy, and slow but still expensive transactions.
How old Cardano (ADA) is, who is behind it, and why?
The development of Cardano started in 2015 and the official platform have been launched in 2017 by Charles Hoskinson, the co-founder of Ethereum with the goal of making a “better” alternative to Ethereum. Both of these platforms have been used for similar, almost same, applications like smart contracts and the main goal of both is building a connected and decentralized system. Cardano has a general vision to be an updated version of Ethereum and recognizes itself as a third-generation platform compared to Ethereum which would be a second-generation one by its credentials. As Cardano runs its platform on the Ouroboros consensus protocol, which is the first proof-of-stake protocol designed to reduce the energy usage required by proof-of-work mining and eliminate absolutely massive computing resources required with the usage of the proof-of-work algorithm, its mission is very clear.
Smart contracts on Cardano
The first implementation of smart contracts by Cardano came with the Alonzo update in 2021 and this testnet update was basically a step towards promised scalability and use cases to users. With this update, users are able to create smart contracts, non-fungible tokens, and easily manage multiple assets and goal for the future forks and releases is to bring smart contracts and generally more capabilities to the mainnet.
Look into the future
Cardano has been developed in “eras” and each era is named after respected notable figures in computer science history and poetry – Byron, Shelly, Goguen, Basho, and Voltaire. In the current, mid-2022, era named Basho focus is on scaling and optimization with a goal of bringing more capabilities to Cardano and providing various ways of usage for its users. What is incoming is Voltaire – the final era of development that is meant to bring voting and treasury management of the blockchain and network through already introduced smart contract functionality and general system improvements.
Once the Voltaire era is completed, the goal is to release blockchain and network to the community as it will be completely decentralized and able to be developed on, maintained, and kept secure in any way so we can basically say that Cardano will no longer be under IOHK management and will be in the hands of the community – Cardano users and contributors.
How and where can I keep my ADA safe?
ADA can be easily stored in crypto wallets such as Daedalus or Yoroi wallet which are the primary wallets of the Cardano ecosystem, developed by IOHK and EMURGO, or additionally in any other wallet that supports ADA.
In simple words, a cryptocurrency wallet is a software that has been designed to store public and private keys of your addresses, exchange digital currencies between addresses (send and receive), monitor your balance, and interact with selected supported blockchains.
There are two types of wallets available – a hot and a cold wallet. The main difference is that a hot wallet is connected to the internet and can be accessed at any time from any place with the keys (these are mobile wallets, software desktop wallets, and funds stored on exchanges), while a cold wallet stores your cryptocurrencies offline and its not connected to the internet. Usually, a cold wallet is used for larger sums that are not frequently accessed and used (a hardware wallet is a perfect example of it and it is a very secure hardware device that stores the private keys of your addresses, additionally – the paper wallet is another example of “cold storage”).
Luckily, Cardano (ADA) is supported by both Trezor and Ledger hardware wallets, so you won’t have any problems with keeping substantial amounts safe and offline.
- ADA is the native token and primary cryptocurrency of the Cardano Network.
- Cardano is a decentralized proof-of-stake (PoS) blockchain platform that aims towards. development of the decentralized application(dApp) with a multi-asset ledger and smart. contracts.
- Cardano aims to be an improved version and alternative for the Ethereum blockchain.
- Cardano runs on the proof-of-stake Ouroboros consensus protocol.
- The final goal of the Cardano is to be decentralized and managed by the community itself.
- Hardware wallets (cold wallets) are the best choice to store funds that are not accessed frequently.