Ada Coin, implemented as part of the Cardano project, is a cryptocurrency developed and designed by a team of academics and engineers. It is supervised by the Cardano Foundation based in Zug, Switzerland. The platform began development in 2015 and was launched in 2017 by Charles Hoskinson, co-founder of Ethereum and BitShares. Cardano is considered to be a third-generation cryptocurrency by its creators. It took the name from Ada Lovelace, a 19th-century mathematician who is recognised as the first computer programmer.
The creators positioned Ada Coin as a third-generation blockchain, whilst Bitcoin and Ethereum are first and second. So they have created a new blockchain structure instead of copying the code of other blockchain formations and aimed to overcome the existing problems in the crypto markets specifically related to speed, flexibility and scalability. Within the Cardano platform, Ada exists on the settlement layer that is similar to Bitcoin and keeps track of transactions. This layer allows users to send and receive Ada Coin, wallet to wallet. The second layer is the computation layer that is similar to Ethereum, enabling smart contracts and applications to run on the platform. Cardano uses Ouroboros proof of stake technology and only the first blockchain entry, whereafter the honest chain is proven locally without the need of a trusted party. In contrast, Bitcoin uses the proof of work system; the first blockchain entry and the longest blockchain (blockchain with the most computing power) is used to determine the honest blockchain. Because of its proof-of-stake structure, Cardano has significantly smaller energy requirements than those associated with proof-of-work chains such as Bitcoin. The Cardano Platform is fully decentralised and does not need any single authority for providing control over the network. The Ada Coin network is operated only by ‘stakers’. Although there are other Proof-of-Stake blockchains available, the Cardano Platform specified that none of them offer a truly random way of selecting a validator. So they built their Ouroboros Protocol on top of the standard Proof-of-Stake model and they claim that it ensures everybody gets a fair chance of earning the reward.
The Cardano Platform allows people to create smart contracts, just like the Ethereum blockchain as well. Furthermore, the Company built its financial stability also on the revenue that will generate from issuing smart contracts. However, if Cardano would like to implement their smart contract protocol globally, they will need to increase their scalability like Ethereum. The maximum scalability at the moment is only 257 transactions per second. Other rivals, such as Ripple, Stellar Lumens, and NEO can already process more than 1,000 transactions per second.
Besides its cryptomarket operations, Cardano Platform joins several projects in different fields like education, logistic, etc. In 2019, the Minister of Education of Georgia and the Ada Coin signed a memorandum of understanding with the Free University of Tbilisi to use Cardano and Atala to build a credential verification system for Georgia. In 2018 Cardano teamed up with the Ethiopian government so Cardano can deploy their technology in a variety of industries throughout the country. IOHK, the company behind Cardano, donated $500,000 gift in Ada to the University of Wyoming in the US to support the development of blockchain technology. Footwear manufacturer New Balance Athletics announced that they will use distributed ledger blockchain to track the authenticity of its newest basketball shoe. The platform will be built with the Cardano blockchain.
The Cardano Team also developed its own official wallet called Daedalus. Daedalushas just received its biggest upgrade yet on Feb. 17. The update has essentially made Daedalus ready for Mary, the upcoming HFC event that’s set to bring native token support to Cardano.
By the end of 2017, it had a market cap of $10 billion, and reached a value of $33 billion briefly in 2018 before a general tightening of the crypto market dropped its value back to $10 billion. To help raise funds for the development of Cardano, the team raised $63 million during its ICO in 2017. It now has roughly a 37 billion Dollar market cap and surpass the all-time-high price of $1.14!
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