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Cardano is a blockchain platform designed to process transactions using a dedicated cryptocurrency called ADA.
The Cardano platform can handle all kinds of transactions, but the real goal is to become the “Internet of Blockchains,” creating an ecosystem that allows seamless interchangeability between different blockchains.
Let’s look at how Cardano (ADA) stacks up against the other major cryptocurrency players.
What Is Cardano?
Cardano is a blockchain and ADA is the coin that powers the Cardano network. This is similar in some ways to ether and the Ethereum blockchain.
Think of Bitcoin as Crypto 1.0. It’s essentially digital gold, but the system is beset with scalability issues. Then there’s Ethereum, often referred to as Crypto 2.0.
Cardano, launched in 2017, is Crypto 3.0, with the goal of improving upon the functionality that Ethereum was initially missing.
Charles Hoskinson founded Cardano, and he’s also a co-founder of Ethereum. Hoskinson had a falling out with the Ethereum team due to a dispute with co-founder Vitalik Buterin in 2014 regarding whether the Ethereum project should be commercial or not.
Hoskinson moved on to launch Cardano as a more scalable, interoperable and sustainable blockchain, intending to improve upon Bitcoin and Ethereum.
“Referred to by supporters as an ‘Ethereum killer,’ Cardano’s ongoing development is supported by the Cardano Foundation and the IOHK research institute, which engage in [resources and development] and peer review via a formal development model,” said Henrik Gebbing, co-CEO and co-founder of Finoa, a digital asset custodian.
One of the major criticisms of Bitcoin and other popular cryptocurrencies is that their blockchain networks, based on proof of work consensus mechanisms, waste huge amounts of energy. Cardano uses a proof of stake consensus mechanism, offering a more sustainable and scalable blockchain.
What Is ADA?
ADA is the cryptocurrency for the Cardano platform. Cardano’s coin is named after Ada Lovelace, a 19th-century mathematician known as the first computer programmer.
People use ADA tokens to pay transaction fees for using the platform. It’s also given out to the validators as a reward for running the proof of stake system.
How Does Cardano Work?
With a blockchain network, there needs to be a way to verify transactions to ensure people don’t spend the same tokens twice. Given the decentralization, there’s no central authority like a bank working to handle the job.
Based on proof of work consensus mechanisms, Bitcoin and Ethereum 1.0 miners run computers to solve complex mathematical equations and add new blocks of data to the blockchain, receiving crypto in exchange for their work. This is time-consuming and uses up large amounts of electricity.
Cardano uses staking, a process where network participants deposit set amounts of crypto to earn the right to participate in the operation of the blockchain.
“The [Cardano] protocol is designed to keep energy expenditure during the block production process to a minimum,” said Daniel Hill, president of Hill Wealth Strategies.
How to Buy Cardano
You do not buy Cardano itself but rather its altcoin, ADA. To buy ADA, you can sign up for an account with one of the major cryptocurrency exchanges. You can then store ADA either on the platform itself or in a crypto wallet.
Where to Buy Cardano
As one of the most popular cryptocurrencies, you can buy ADA for the Cardano network from most top cryptocurrency exchanges. Binance, Coinbase, Gemini and Kraken are a few of the major players that sell ADA. To help find a good fit, check out this review and compare the best crypto exchanges.
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How to Use Cardano
You can use ADA like any cryptocurrency. You could hold onto it as an investment, use it for purchases and exchange it. You can also use your ADA to cover transactions fees on the Cardano network and for staking to earn more tokens. If you want to hold Cardano long-term, pay attention to which wallet you use.
“The two official Cardano wallets are the Daedalus wallet [full node] and the Yoroi wallet [light node]. Both wallets allow users to earn new Cardano by staking their assets and also allow them to vote in Project Catalyst, a fund awarding ADA to Cardano projects,” Gebbing said.
Gebbing also said that developers and institutions can use the Cardano network for projects, even if they don’t use the ADA token directly. “Perhaps most notable is the Atala Prism project, which seeks to issue digital identities to students across Ethiopia, including verifiable information about academic performance,” he added.
There are plenty of DeFi and non-fungible token (NFT) initiatives within the Cardano ecosystem, too. A few of these projects include decentralized exchange Sundaeswap (SUNDAE) and decentralized and trustless lending protocol Meld (MELD), to name a couple.
Advantages of Cardano
- More environmentally friendly. Cardano is one of the most environmentally friendly blockchain systems. In a 2021 interview with Forbes, Hoskinson claimed that Cardano is 1.6 million times more energy-efficient than bitcoin.
- Faster transactions. Cardano is also much faster at processing transactions than Bitcoin or Ethereum 1.0, which is sometimes referred to as Classic Ethereum. Cardano can process more than 250 transactions per second (TPS), compared with around 4.6 TPS for bitcoin and between 15 and 45 TPS for Ethereum 1.0. This makes the Cardano network very scalable. That said, Ethereum 2.0 is the Ethereum network’s upgrade to address prior security and scalability issues.
- Peer-reviewed network. The Cardano team works closely with academics to generate peer-reviewed research to guide blockchain development. “Its nature as an open-source and peer-reviewed blockchain helps ensure its survival and evolution beyond that of its parent organization,” Gebbing said.
Disadvantages of Cardano
- Catching up to more established competitors. Cardano is trying to create a better version of blockchain, but competitors like Ethereum have the advantage of longer histories of use and more uptake by developers. In fact, one of Ethereum 2.0’s upgrades includes a proof of stake approach that could negate a key Cardano advantage.
- Could have trouble standing out. The cryptocurrency market is ever more crowded, and it’s not easy getting attention. “It’s not memeable and there are a lot of competitors in the same space,” said Hill. For example, Dogecoin showed how much a crypto could boom just based on a popular meme, which the more subdued Cardano brand does not have.
Should You Buy Cardano?
Cardano’s backers believe it could become one of the leading cryptocurrencies thanks to its innovative and environmentally friendly system. Cardano is backed by a lot of research and resources, but it remains a high-risk investment.
“If you’re considering ADA, treat it like any other cryptocurrency. At this point, only invest what you’re comfortable losing and don’t expect huge gains overnight,” Hill said.
Gebbing recommends that if you like the ideas behind Cardano, you should start with small investments.
“Before investing in any blockchain’s token, it’s advisable to gain experience as a user, experimenting with a small amount by transacting between wallets, staking on the network, and using it to participate in governance,” said Gebbing.
Do your research. If you believe in the Cardano approach to blockchain technology, then it could be a solid addition to your cryptocurrency portfolio.
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PrivaCrip to Power a Blockchain Network That Could Follow Cardano & XRP
When the first decentralised blockchain was popularised in 2008 by Satoshi Nakamoto, the door was open for people across the globe to transact more securely and seamlessly. Many blockchain networks have been built and powered by native crypto tokens, including PrivaCrip (PRCR).
Native tokens exist for several reasons. Aside from acting as digital currencies, they perform various functions. Helping blockchains improve data traceability, security, transparency, and trustworthiness shared throughout the network. They also assist in reducing costs through their ever-evolving efficient methods.
Cardano (ADA) and Ripple (XRP) are among the best blockchain-based cryptos that this article will discuss. We will also look at how PrivaCrip (PRCR) will power a blockchain network set to launch into the crypto space.
Top Tier Crypto Makes its Mark – Cardano (ADA)
Cardano (ADA) has been around in the crypto space since 2017. The Proof-of-Stake (PoS), Ouroborous Cardano (ADA), was established using a research-based methodology.
Research is the backbone of Cardano (ADA) and is integral to its success in the cryptocurrency market. Cardano (ADA) uses an evidence-driven mechanism and peer-reviewed research to run its ecosystem to drive its evolution.
Among many things, Cardano (ADA) helps establish DeFi products and provides a suite of financial solutions. Crypto enthusiasts can stake Cardano (ADA) for a chance to earn rewards for their holdings.
With 2022 providing challenges in cryptocurrencies across the globe, Cardano (ADA) is one of the few cryptos to see a surge in on-chain trading volume this year. CoinMarketCap lists Cardano (ADA) as the 7th largest crypto by market capitalization at the time of writing.
Making Waves – Ripple (XRP)
Launched in 2012, Ripple (XRP) is a leading provider of crypto solutions for businesses. Ripple (XRP) provides developers with a solid open-source foundation for executing demanding projects. It is fast, energy-efficient, cost-effective, and reliable.
The solutions provided by Ripple (XRP) enable developers to solve inefficiencies, including asset tokenization and remittance. Therefore, individuals and businesses may apply Ripple (XRP) for DeFi, payments, tokenization, and more.
Crypto enthusiasts with a long-term focus may find Ripple (XRP) a valuable investing tool. Token holders can use Ripple (XRP) for staking its mainnet platform for a chance to grow their earnings and maximise profit.
The New Face Of Privacy – PrivaCrip (PRCR)
The soon-to-launch PrivaCrip (PRCR) is a cryptocurrency built for Web3 data privacy. It will allow users to develop and use permissionless and privacy-preserving applications. This unique feature of PrivaCrip (PRCR) secures apps, protects users, and fosters the creation of many new Web3 uses.
PrivaCrip (PRCR) will drive a blockchain that creates a more empowering and inclusive internet. It will enable developers to build secure dApps using private contracts based on original privacy research (OPR) to revolutionise Web3.
PrivaCrip (PRCR) will begin pre-sale soon and has an initial token price of 0.10 USD. According to the whitepaper, there will be a total supply of 190 million tokens, of which 40% of the total supply will go to the pre-sale.
Crypto enthusiasts who purchase PrivaCrip (PRCR) during the pre-sale will receive the most significant long-term rewards and bonuses. Those who buy with Bitcoin (BTC) will receive a 10% bonus. Also, those using Ethereum (ETH) to purchase will receive 15% of the total PrivaCrip (PRCR) they purchase as a bonus.
10% of PrivaCrip’s (PRCR) total supply is up for distribution as staking rewards, meaning that token holders who stake will receive rewards for their contribution to the crypto’s advancement.
Blockchain networks are continuously evolving, and so are the crypto tokens that power them. Cardano (ADA) and Ripple (XRP) have contributed tremendously to the success of their blockchain networks, gathering mass appeal.
PrivaCrip (PRCR), for its part, will drive a security-enabled blockchain and scalability in private DeFi, empower data tokenization, and bring together a fast-growing community. Acting on its promise, it has the potential to become the next big mover in cryptocurrency.
For more on PrivaCrip (PRCR), check below:
Cardano (ADA) Withdrawal Fees Waved by Bitrue Exchange
Singapore-based cryptocurrency exchange made Cardano one of its base trading pairs earlier this year
Singapore-based cryptocurrency exchange Bitrue announced that it had temporarily waived withdrawal fees for the Cardano (ADA) cryptocurrency.
The trading platform says that the move is meant to celebrate the support it received from the community behind the cryptocurrency.
Users will be able to withdraw ADA without paying any fees until mid-September.
Bitrue has stressed that it wants users to have “as much choice as possible” when it comes to custody options. Those who want to hold their ADA tokens will not be able to do so without paying an additional commission.
At the same time, Bitrue has touted its “Power Piggy” yield-farm investment program for those who want to earn passive income with ADA.
As reported by U.Today, Bitrue introduced the token as its base currency back in February.
In June 2021, it also became the first cryptocurrency trading platform to add support for Cardano-based native tokens.
Last month, Bitrue also announced a staking initiative with the ADA cryptocurrency. It decided to contribute a million tokens to some of the top Cardano staking pools in an effort to boost the level of decentralization.
Earlier this year, SundaeSwap (SUNDAE), the native token of the SundaeSwap exchange, also became available on Bitrue.
WingRiders Losses 59% Of Its Total Value Locked, Plunges Cardano TVL Below $100M
Popular Cardano-based decentralized exchange WingRiders has lost its position as the most valuable DEX on Cardano.
WingRiders slumped from the first position to third after losing more than 59% of the total value locked (TVL) on the platform in the past 30 days.
At the time of writing this line, WingRiders is now the third-largest DEX by total value locked, with a TVL of $19.66 million. It is noteworthy that WingRiders maintained the top spot for more than two months, claiming 42% of TVL On Cardano. However, the DEX has fallen from glory ever since.
Minswap Is Now Cardano’s Most Valuable DEX
The development also affected the total value locked on Cardano. The total value locked on Cardano has fallen below $100 million in the last 30 days after the WingRiders TVL slumped.
Interestingly, Minswap has taken the lead to become the most valuable decentralized exchange on Cardano after the massive decline of WingRiders’ TVL.
At press time, Minswap is leading, with a $49.09 million total value locked on the platform. The DEX hit the milestone after recording a massive growth of 30.9% in its TVL in the past 30 days. Minswap accounts for 51.82% of the total value locked on Cardano.
SundaeSwap, the first decentralized exchange on Cardano, is now the second most valuable DEX in the ecosystem. SundaeSwap is second in the ranking, with $19.72 million in TVL.
Like WingRiders, SundaeSwap has also lost a significant amount of its TVL over the past 30 days. In the past month, SundaeSwap has lost nearly 10% of the funds locked on the platform.
Commenting on the development, Cardano Daily, a platform that shares new developments about Cardano, said:
“After the major decline of @wingriderscom, the TVL scenario of the Cardano ecosystem has stabilized back to normal as we have seen in the past few weeks. @MinswapDEX still led the ecosystem with $51M TVL, contributing 50% of the ecosystem.”
CARDANO TVL STATUS
After the major decline of @wingriderscom, the TVL scenario of the @Cardano ecosystem has stabilized back to normal as we have seen in the past few weeks. @MinswapDEX still led the ecosystem with $51M TVL, contributing 50% of the ecosystem#tvl #cardano $ADA pic.twitter.com/xjZ6cHo8jX
— Cardano Daily (@cardano_daily) August 9, 2022
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