What is Cardano? What is ADA
What Is Cardano (ADA)?
Cardano, the third generation, decentralized PoS blockchain platform, designed as a more efficient alternative to PoW networks. Scalability, interoperability, and sustainability are limited in PoW because of growing costs of infrastructure, extensive use of energy, and slow transaction times. Charles Hoskinson, co-founder Ethereum, recognized this and started to put his efforts building the blockchain that can eliminate the challenges related to existing PoW blockchain. The new blockchain he developed is Cardano Blockchain which was launched in 2017 and its cryptocurrency "ADA".
Cardano platform runs on Ouroboros consensus protocol and is the first PoS protocol that not only was proved to be secure, but also was the first to be informed by scholarly academic research. Cardano development is divided into 5 different phases; foundation, decentralization, smart contracts, scaling, and governance and Ouroboros was created in the first phase of Cardano. Every phase of Cardano is well researched, reviewed, rigorously tested to check the insights and using evidence based methods to achieve the milestones related to the future directions of the use applications for both blockchain and the token.
Ouroboros, the consensus mechanism is designed to reduce energy expenditure during the block production process. It eliminates the need for hash power, or massive computing resources, that are central to the functioning of the proof-of-work (PoW) algorithm used by Bitcoin. In Cardano algorithm, how much a node stakes its ADA held over a long term determines its capability to create the block.
In simple terms, one can say, Cardano is well researched reviewed cryptocurrency that aims to be decentralized app development platform with multi asset ledger and verifiable smart contracts and shared by The Cardano Foundation, IOHK, and EMURGO.
At the time of writing the blog, 71.59% of Cardano's cryptocurrency is staked in 2626 active pools with approximate value of $31.4 billion.
Cardano has positioned itself as an alternative to Ethereum. Ethereum and Cardano can be used for similar applications like financial systems that need to go decentralized, smart contracts, supple chain etc. Cardano present itself as an alternative and an updated version of Ethereum and portrays itself as third generation platform over second generation Ethereum. Cardano is aiming at providing banking services for those who don't believe in traditional financial services or in banking system and pays in cash or money orders for products and services (World's unbanked). Main application of Cardano is identity management (collecting data from multiple sources) and traceability (track and audit the process from start to finish and eliminate the market for counterfeit )
Cardano decentralization and eco-system responsibilities are divided amongst 3 organizations: The Cardano Foundation: non-profit, legal custodian, responsible for supervising the brand, visibility of protocol, looks for new use case opportunities and connects with policymakers and other parties responsible for establishing the brand on global market.
IOHK, software engineering and technology company, responsible for building the protocol, doing research and extending the services for promoting the blockchain education.
EMURGO, the global technology partner, responsible for driving the commercial adoption of the Cardano protocol, integrating businesses across a wide range of sectors into their blockchain system.
How ?Ouroboros Works
On a broad level, Ouroboros works as follows. It divides physical time into epochs that are made up of slots, which are fixed periods of time. Slots are similar to working shifts at a factory. Currently, an epoch lasts five days, and a slot lasts one second, but these numbers are configurable and can be changed after an update proposal. Epochs work in a circular fashion: when one ends, another starts.
Each slot has a slot leader chosen by a “lottery” system. In this system, the higher the stake, the better the chances of winning the lottery. These slot leaders are responsible for validating the transaction, creating the blocks and adding new blocks to the chain. Thus this protocol needs lesser number of Ada holders to be online to carry a transactions, this provides better network connectivity, reduces total energy consumption and brings Ada holders together in the pool to represent one amongst to carry the transaction on pool's behalf.
Professional at CIC keep a close eyes on the market and are determined to give our viewers and members the insight of the market using our analysis and thus assisting our members to score well on the crypto charts.
To know more about us and how we do and to learn more of the crypto market, don't hesitate to give us a call on +1 6474035381 or push an email to robert@wattersonfinancial.com
Check our blogs to know more about cryptocurrencies, Blockchain, Investments, XRP, Bitcoin, Ethereum, Chia, Polygon, dogecoin, litecoin,
polkadot, cryptomining, stablecoins, NEO, DAI, Tether, Basecoin, IOTA, mIOTA, DAG, Tangle, PoW, PoS
For more information about our tax services, feel free to reach out to our experts at Watterson Financial Solutions Inc To connect with us, you can either call us at 647-403-5381 or email us at robert@wattersonfinancial.com. We are a team of dedicated accounting and finance professionals, and we cater to the needs of individuals and business owners. We specialize in all areas of tax, accounting, assurance, succession planning, risk management, and business consulting. That way, we can give you full control over your finances. We also provide business advice to companies in different industries so you can become tax-efficient and transition your business into the new economy.
For more information about our services, please click here or get in touch with us by clicking here.
Valuable blog posts: Our blog is updated regularly with accounting advice, valuable tools, product/service information, and accounting trends.
Unmissable promotions: From time to time, we’ll share our most exclusive promotions with our newsletter subscribers. Don’t miss out!
We promise we won’t overload your inbox! Watterson Financial Solutions Inc’ email newsletter is sent out bi-monthly with only the most relevant content for you.
With several years of experience, Watterson Financial Solutions Inc is a leading accounting firm in Mississauga, Ontario. Our services include personal tax planning, business registration, business setup and consulting, bookkeeping and accounting, payroll, WSIB, HST, corporate tax, assurance, disability tax credit program, budgeting and forecasting services, insurance, mortgages, investments, real estate and legal services, business valuation services, estate planning services, litigation support and damage quantification services.
To learn more about what we do, please click here, or get in touch with us by clicking here.
Sign up for our newsletter now to stay in touch with us. Register here!
Personal Tax Planning | Business Registration | Business Setup & Consulting | Bookkeeping & Accounting | Payroll, WSIB, HST | Corporate Tax | Assurance | Disability Tax Credit Program | Budgeting and Forecasting Services | Insurance, Mortgages, Investments, Real Estate & Legal Services | Business Valuation Services | Estate Planning Services | Litigation Support and Damage Quantification Services | Staunch IT Consultants |
Share This News