After the overwhelming success of Vitalik Buterin and his brainchild of Ethereum, many developers have undertaken to create new cryptocurrencies with the built-in smart contracts feature. However, not all projects have been successful. It cannot be said about Cardano – cryptocurrency, which appeared only a few months ago, but already managed to conquer the Asian market and enter the world top cryptocurrency. What is the reason for such a quick success and is it worth investing in Cardano? Are there any real prospects for a new cryptocurrency? Let’s try to figure it out!
What is Cardano cryptocurrency?
Charles Hoskins, the famous programmer, one of the first developers of Ethereum, became the inspirer of Cardano. Starting work on Cardano, he set an ambitious goal – to create a decentralized platform of a new generation for the universal introduction of cryptocurrency in the real economy.
It is noteworthy that the work on the project was immediately divided into three parts technical, commercial and ideological. A separate institution was created for each of them.
- Cardano IOHK is engaged in the development of technical solutions and a block structure of cryptocurrency.
- Emurgo – is developing a commercial application based on Cardano.
- Cardano Foundation is responsible for the promotion and protection of proprietary technologies, monitors and guides the development of the project.
Work on Cardano has been going on since 2014, but ICO to raise funds from investors was held only last year. And the first tokens (ADA) went on sale recently – September 29, 2017.
The coin has already gained immense popularity in Asia, it can be bought and exchanged for other cryptocurrencies (in particular, Bitcoin and Ethereum). But it will be possible to talk about the wide practical application of Cardano only in a couple of months.
What are the features and benefits of Cardano?
- Technical innovations
First of all, the developers have divided the blockchain into two separate technical layers. The first is intended for the distribution of coins, the second – for working with smart contracts. As a result, transactions are faster, and the level of security of the system has increased several times.
- Increased system security
Unlike most other cryptocurrencies, the Cardano code is written using Haskell. Today it is the most secure programming language, the use of which minimizes the likelihood of cyber attacks and errors in the system.
- Legal status
In the conditions of heightened interest of the state in cryptocurrencies, Cardano developers chose the most successful promotion strategy. They establish contacts with government agencies, providing their coin the status of an official means of payment.
- Innovative Crypto Wallet
The developers have created their own crypto with a high level of security and wide functionality. With it, you can encrypt keys, make payments and even earn new coins. More details about him in the relevant section.
- Updated mining algorithm
The developers have abandoned the ponderous “work confirmation algorithm” (Proof of Work) in favor of the unique “share confirmation algorithm” (Proof of Stake). Simply put, the miner’s reward depends on the balance in his account and the number of transactions performed. This algorithm is mathematically confirmed and is considered the safest for users.
How to mine Cardano?
As we have already said, the project is at the stage of finalization, and the mining of the coins is not at issue. The developers do not provide any information about the equipment and programs for the future of mining. And no one knows exactly how the process of mining new coins will look like. Many experts suggest that the mining of the ADA will be similar to the harvested on the NEM network. That is, users will receive a reward for maintaining the functioning of the system.
Moreover, almost 58% of this number has already been sold using ICO, 12% are divided between developers, and only 30% will be distributed between users of the system during the mining process.
It is also known that the disclosure of each new unit will bring 2000 ADA. 1500 coins will be distributed between miners, and the remaining 500 coins will be credited to a special fund.
Developers will be able to use funds from this fund to finance their new projects. However, for this, they will need to create appropriate requests that will be sent to a universal vote. In other words, the financing of new projects will depend on the collective decision of Cardano users.
Where to buy Cardano?
It is easiest to buy ADA in Japan. The country so cordially accepted the promising cryptocurrency that it even installed special ATMs in the cities where you can buy coins.
Residents of other regions can only buy ADA on cryptocurrency exchanges. However, due to the novelty of the project, the coin is still poorly represented on such resources. At the moment, it was accepted only by three exchanges that offer to buy ADA for bitcoins, ethereums or dollars.
If the project is successfully completed, the coin may appear on all major cryptocurrency exchanges. Already, developers are negotiating with Bitt and Cryptopia.
In addition, the developers are preparing to launch their own payment card, which can be used to buy coins and direct calculations of cryptocurrency.
It is planned that it can be connected to a special application on a computer or smartphone in order to quickly convert coins into local currency. For example, in Japan, ADA on the account can be converted into yen, in the US – in dollars, and in Russia – in rubles.
Where to store Cardano?
Only ADD Daedalus Wallet can be used to store ADA. It is very easy to install:
- Go to the official website https://www.cardanohub.org/.
- Select the “GET STARTED” tab.
- Go to “Daedalus Wallet” and click “Download”.
- Download the installation file to your computer.
- Open the file and set all the necessary settings.
- A wallet is ready to use!
It is noteworthy that the functionality of the Cardano crypto wallet is not limited to the storage of coins. The developers prescribed in it a number of additional functions to encrypt private keys, obtain paper certificates, track transactions and even launch decentralized Cardano-based applications.
At the moment, only versions of the cryptographic window for Windows and macOS are developed. But soon it is also planned to create mobile versions for Android and iOS.
In addition, the developers promise to add the ability to store BTC and ETH. That is, Daedalus Wallet promises to be a real multicurrency crypto wallet.
Moreover, the developers’ plans include adding the function of the so-called equity financing. Holders of the ADA will be able to participate in the generation of blocks directly from the account of their crypto wallet. And, accordingly, receive a reward on him.
How and why did the cost of Cardano change?
At the moment Cardano was launched, the cost of the token was about 10 cents, and the market capitalization level was barely more than $ 19 million. But 4 days after launch, capitalization reached $ 500 million, and the price of the coin increased by 2 times.
Thus, Cardano broke through to the 5th place in the cryptocurrency market capitalization rating, skipping ahead only Bitcoin, Ethereum, Ripple and Bitcoin cache.
Is it worth investing in Cardano?
Many traders are still afraid to invest in a new coin, suspecting the fraudulent scheme of Pump & Dump in its rapid growth.
However, most experts agree that Cardano is a promising and long-term project. Where such confidence?
- The project employs the best specialists, including Hoskins, who participated in the creation of Ethereum.
- Cardano was widely accepted in Japan and other Asian countries, which declared cryptocurrency the official means of payment and now choose the best coins for direct use.
- Course jumps are fully consistent with the positive dynamics of the project (the adoption of large cryptocurrency exchanges, good technical solutions, etc.).
- The market capitalization of cryptocurrency is constantly growing, which means that the project is actively attracting investor capital.
- At the moment it is the only cryptocurrency with the stipulated regulatory regulation. That is, the developers did it taking into account the increased interest from the state.
It should be noted that Cardano was not conceived as a regular cryptocurrency for quick money-making, but as a long-running cryptocurrency project adapted for new economic conditions.
According to experts, he combined the blockchain’s manufacturability, the security of Ethereum’s smart contracts and the legality of ordinary money. No wonder that the developers themselves call Cardano the “third-generation blockchain” – functional, safe and legal.
In this regard, Cardano developers are very consistent. They are not seen in connections with the darknet and money laundering, due to which their reputation today is much higher than that of the developers of many other popular cryptocurrencies.
Moreover, for the legal promotion of their coins, they chose Asia – the region that feeds the entire global cryptocurrency market. According to analysts, it is the inflow of capital from Asian countries that determines the growth of market capitalization of cryptocurrency.
It is not uncommon for a new token to quickly become popular and grow in price precisely because of its wide acceptance in Asian countries. This is exactly what happened with the cryptocurrency NEM, which Asian investors quickly brought to the world top. Now the same thing happens with Cardano, and this is a serious argument in favor of the fact that the project will “shoot” at the final launch.
As for investment opportunities, most analysts and experienced traders are sure that it is necessary to invest in Cardano right now. The popularity of the currency is constantly growing, but the coin has not yet reached its peak value.
That is, now there is still an opportunity to buy ADA at a bargain price. When the project is officially completed and active mining begins, the price of the coin can jerk up sharply.
Many experts expected that by mid-2018, the price of ADA could reach a value of $ 1. But she got to this level today! So now the forecasts for a rapid increase in the cost of up to $ 3 5 look more realistic, and this is only by the most conservative estimates.
We add only that it is a good idea to buy coins now and keep them for at least a year. Based on the above features, Cardano may well be a worthy option for long-term investment.