Cardano (ADA) : A history of impossible, made possible

After the creation of Bitcoin, many other groups were inspired and wanted their own cryptocurrency to be made. One such crypto, Cardano (ADA), was created in 2015. Since then, Cardano (ADA) became one of the most popular crypto in the market. So now, let's have a look at what Cardano/ADA is and why it is so popular.

What is Cardano?

Cardano is a fully open sourced third generation proof of stake blockchain. Mainly addressing the issues in first generation and second-generation blockchains, mostly Bitcoin and Ethereum 2.0 respectively. This means that it aims to process more transactions that are cheap and quick. This blockchain platform is also the home to ADA, Cardano’s native token, in other words, Cardano is ADA’s blockchain.

Cardano is currently led by co-founder Charles Hoskinson and Cardano was established by a blockchain development company called Input Output Hong Kong (IOHK, we will have a look into IOHK later). Charles Hoskinson is the CEO and founder of IOHK as well as the co-founder of Ethereum (visit our article on Ethereum to learn more about it) and Cardano, two of the world's most popular cryptocurrencies.

Cardano Logo
Photo Credit: cardano.org

What is ADA?

ADA is a digital currency as well as Cardano’s native token which can be used to make transactions. ADA is a digital asset which can be used to participate in the network’s staking. In simple words, staking is the act of locking cryptocurrencies through which you can receive rewards. According to a few studies, people found out that ADA is the only coin with a researchful method and a scientific philosophy.

How were Cardano and ADA named?

The platform Cardano was named after Gerolamo Cardano. Gerolamo Cardano (1501 – 1576) was an Italian mathematician, biologist, physicist, astronomer, chemist, astrologist, physician, philosopher, gambler and writer. You’ll probably be wondering how a single person can get this much titles but keep that aside. He was well-known and became popular as he published over 200 scientific pieces of work.

Cardano’s native token, ADA, was named after ADA Lovelace who was a 19th century mathematician and a writer. She wrote the first set of rules that can be followed on a computer, which made her the first computer programmer.

Daedalus wallet – What is it and its pros and cons

Cardano has created its own official open sourced wallet called Daedalus built to grow with the Cardano blockchain. Daedalus is a secure wallet which you can download to keep your ADA safe.

Daedalus is a full node wallet which means that it downloads an entire copy of the Cardano blockchain’s history and single handedly validates every transaction in its history (quickly). This doesn’t work in the case of light wallets such as Yoroi, Cardano’s light wallet. This way, Daedalus makes sure that you get maximum security available from this wallet.

Pros

  • Fully validates every block transactions
  • Supports all desktop platforms
  • Free
  • Maximum security

Cons

  • Only supports ADA
  • Direct purchase functions, no exchange
  • Will require around 4.1 GB of disk space.

Yoroi wallet and its pros and cons

Just like Daedalus, except being a light wallet, Yoroi is Cardano’s web wallet developed by Emurgo and engineered by IOHK. Yoroi is a light wallet which means that it does not need to synchronize or download the full copy of the blockchain. You can use Yoroi in Mac OS, Linux as well as Windows, but only not in iOS or Android.

To send or receive ADA using Yoroi you first need to create your own unique wallet in Yoroi. You then have to store your 15-word recovery phrase that you will get in this process. This is very important, if you lose this you will likely lose your ADA.

To receive ADA go to the Receive tab in your wallet and generate an address. Use a button in the user interface to copy it to the clipboard and then share it with the person who is going to send you ADA.

To send ADA, obtain a Yoroi address from the person you are going to send ADA to and use the Send tab in your wallet to send the desired amount of ADA to that address.

Pros

  • Secure
  • Quick
  • Easy to use
  • You can use it instantly

Cons

  • Has to connect to a full node

Pros and Cons of Cardano

Pros

  • Quick transactions
  • Fast transactions
  • No scaling limit
  • Cardano is releasing their blockchain in stages

Cons

  • Blockchain is still being developed
  • Only 257 transactions per second
  • Other currencies like Ripple NEO process can more than  TPS
  • A smaller developer community as compared to ethereum

Cardano vs Bitcoin

Bitcoin, launched in 2009, is one of the most popular crypto that everyone is aware about and it also remains top in terms of market capitalisation and price. It aims to create its smart contract language called Sapio (under development). Bitcoin has limitations in running smart contract applications. Another thing is that Bitcoin is a first generation cryptocurrency. Since Bitcoin’s release, in 2009, more than $7 trillion dollars ($7,000,000,000) has been transferred. The price of 1₿(Bitcoin) currently stands ~$51,000. The market capitalization of bitcoin is approximately $958,740,530,000. Visit our Bitcoin guide to know more.

On the other hand, however, Cardano (ADA) is not as popular as Bitcoin although it keeps improving day by day. Like Bitcoin, Cardano also aims to create and include its own smart contract via a platform called Plutus. The Platform, Plutus, is the smart contract platform of the Cardano blockchain. This smart contract will be deployed in the Goguen update. Unlike Bitcoin, Cardano does not have any limitations. Another thing is that Cardano is a third generation cryptocurrency which is far more advanced.

Overall, Bitcoin is more popular and has a higher value and on the other hand, Cardano is better in terms of transaction. Cardano performed a test in 2017 which showed that it processed 257 transactions per second, which is more than Bitcoin which can only process 4.6 TPS.

In the end, Cardano comes out as a winner in the Cardano vs Bitcoin battle when it comes to the given information above.

Click here to download Daedalus Wallet and Yoroi Wallet
|| Daedalus Wallet || Yoroi Wallet ||

Disclaimer: Digital Wallets News does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

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