5 Things to Know about Cardano ADA
If you’re into crypto at all, you’ve likely heard the name Cardano tossed around. While ADA, Cardano’s flagship token, is relatively new and considered a third-generation cryptocurrency, it’s made an undeniable ripple. Why? From the way its blockchain functions to real-world applications, Cardano has proven itself to be in it for the long haul. There’s a reason we chose Cardano ADA tokens as the currency to fund your space missions! Are you interested in getting on board with a wallet full of ADA? Here are five things you need to know about Cardano.
- Fans have dubbed it “the Ethereum Killer.”
Considering Ethereum is one of the top cryptocurrencies in the market, dubbing ADA as the Ethereum killer is bold. Are there any grounds for the claim?
- Cardano’s origins are in part thanks to Charles Hoskinson — a co-founder of Ethereum.
- Cardano shares a lot of similarities with Ethereum, including using smart contracts and possessing a programmable blockchain.
- It processes transactions faster than Ethereum and is projected to add another layer to the blockchain that will allow it to process up to one million transactions per second. In short: Cardano can scale more efficiently than other cryptocurrencies.
- Cardano is actively being developed in the blockchain space, with over one hundred developers working on it — more than any other blockchain.
However, there are reasons why Ethereum is such a giant in the crypto space. To claim such a small-scale, new currency could “kill” it might be a touch optimistic.
- Cardano is an “eco-friendly” cryptocurrency.
One of the reasons Ethereum (and Bitcoin, for that matter) are slower at processing transactions is that they run on a proof of work mining model rather than a proof of stake model like Cardano.
Proof of Work (PoW): Miners compete to solve and validate complicated equations in order to add new blocks to the blockchain.
Proof of Stake (PoS): Only those who have invested in the currency can validate equations and add to the blockchain, which is called staking.
By having stakeholders validate the equations, mining doesn’t get out of control, and computing power can stay in check. How much more efficient is Cardano compared to Bitcoin and Ethereum? Here’s a handy chart from The Ascent:
- Cardano has real-world applications.
One of Cardano’s most ambitious goals is to help unbanked populations in the world gain access to financial services. On top of finance, there are numerous ways to use its blockchain, including the authentication of pharmaceuticals, transparency in global economic sectors, and supply chain tracking for businesses. While at the moment, most of the applications are hypothetical, they are certainly not impossible.
- Cardano is limited in number.
Like Bitcoin, which has a fixed supply of twenty-one million, Cardano is also limited in number. Only forty-five million ADA tokens exist (and will ever exist), with just over thirty million of them currently in circulation. What does this mean? If the coin does take off even more in the future, the limited number will help drive demand and, therefore, value.
- Cardano runs on research, not trial and error.
While some complain that Cardano is slow-moving and perhaps “not quite there yet,” this is because Cardano is peer-reviewed and runs on a proven-to-work system rather than trial and error. While development may be slower in terms of getting apps on the blockchain and other updates, it also means fewer snags in the future that could cause significant setbacks.
We get it. The world of crypto can feel like you’re standing on the edge of a black hole. There’s a lot to know! Hopefully, these five things to know about Cardano let you see why ADA tokens are the mission-launching currency of choice here at Space Tokens. Are you ready to fuel up your wallet and prepare for lift-off?
