platform logo

blog

Menu
platform logo
Buy / Sell
Bundles
Blog
Affiliate
Giftcards
Earn

“If you like gold, there are many
reasons you should like bitcoin.”

Product

Opinion

News

Back

Product

What Is Cardano? A Complete Guide

Ting Wang

5 Min Read

What is Cardano? In a world where thousands of different cryptocurrencies exist, what really separates the best from the rest? Or better yet, how are the crypto newcomers challenging the well-established mainstream players like Bitcoin and Ethereum? A simple answer: third generation blockchain. This guide will explore the history and current and future use cases of Cardano (ADA).

WHAT IS CARDANO? A BRIEF HISTORY

In 2017, the Ethereum co-founder, Charles Hoskinson launched Cardano (ADA). Debuting with a market capitalisation of approximately $600 million, ADA drew significant traction during the 2017 and 2018 crypto hype. During this period, ADA achieved a peak market capitalisation in excess of $30 billion. A market wide contraction after this saw ADA pull back to a market capitalisation of $10 billion.

Regarded as a third generation blockchain, ADA improves on prior generations by implementing a layered design architecture. This architecture addresses the key issues plagued by second and first generation blockchains, specifically that of provisions for scalability, security and interoperability. Having contributed to the development of Ethereum, Hoskinson understood these technical limitations and sought to address them in Cardano.

In achieving this, the Cardano blockchain implemented two core components. Firstly, a settlement layer acts as the place where token holders can send and receive ADA with minimal transaction fees. Secondly, a computational layer contains a set of protocols. These protocols are the backbone of the blockchain, and helps facilitate the operation of smart contracts and to ensure security.

Unlike other cryptocurrencies, Cardano emphasises on a research-driven approach to design, having enlisted the help of cryptographers and mathematicians for development purposes. The developers of Cardano believe this strategy will propel adoption of its technology.

WHAT IS CARDANO? THE USE OF ADA

Cardano is designed to be the optimal platform for large-scale, mission critical decentralised applications (DApps) that can underpin the world economy in the future. As such, the platform is built to achieve the necessary high-assurance functions, such as scalability and interoperability, required for real-world applications.

Aside from using it as a store or transfer of value, there are two primary use cases of ADA. Firstly, holders can delegate their stake to a pool allowing them to contribute to the network and be rewarded proportionately. The amount of stake delegated to a pool is the primary reason the protocol elects who should add the next block to the chain.

Secondly, holders can also use their ADA in voting. Unlike other mainstream blockchain networks, token holders vote and decide on alterations to the protocol – not miners. To this effect, holders can use their ADA to vote on such protocols, ensuring all holders have a say.

In the future, ADA will also be used to operate smart contracts on the Cardano blockchain. Currently, smart contract development for Cardano has begun and is expected to be finalised in the first half of 2021. Once complete, developers will be able to utilise ADA to create smart contracts and applications that run on the blockchain.

IS ADA SAFE TO INVEST IN?

ADA is a token that has received significant attention and quickly positioned itself as a top 10 cryptocurrency by market capitalisation. In employing a unique layered architecture as a third generation blockchain, there is no doubt this attention has been warranted.

Compared to other mainstream cryptocurrencies such as Bitcoin and Ethereum, Cordano is still relatively new to the crypto scene. Although having implemented a number of features that improve upon second generation blockchain, development is still continuing. Given these factors, investing in ADA is still largely speculative and would be appropriately held within a diversified crypto portfolio.

Aside from this, it is refreshing to see a blockchain project take an academic approach to developing new technologies.

LOOKING TO BUY ADA WITH AUD?

Look no further, Coinstash is one of the few Australian platforms that allows its users to buy ADA with AUD . We have deep liquidity into USD markets, therefore the ability to provide our users with some of the best prices available.

Ting Wang

Co-founder

Ting is a finance professional and an accomplished investor. Ting is well-conversed in financial markets, as well as having a background in taxation and law. Having previously worked for a top-tier accounting firm and an US-listed fintech company, Ting decided to pursue his passion in cryptocurrency in 2017 by joining forces with high school friend Mena.

Stablecoins: What are they and why are they important?

opinion

Stablecoins: What are they and why are they important?

Why are cryptocurrencies that mimic the dollar important innovations and how you could use them for your benefit? At Coinstash, we’ve identified three benefits of stablecoins you could use to your advantage.

Keep reading

5 Min Read

10 Ways to become a Bitcoin millionaire

news

10 Ways to become a Bitcoin millionaire

Did you know you don’t need to buy a ‘whole’ Bitcoin-like one pictured above? Note to our readers: as Star Wars fans and with the 9th installment of the franchise due to release as at the time of writing, we feel that it is obligatory to list them out in terms of Light vs Dark Side.

Keep reading

Author photo

Ting Wang

5 Min Read

What determines the Bitcoin price AUD? A Complete guide

stories

What determines the Bitcoin price AUD? A Complete guide

When Bitcoin launched, the price of a single Bitcoin was less than a dollar. By late 2017, the Bitcoin price AUD reached a staggering A$28,000! Since then, the price has continued to fluctuate, making it an exciting investment opportunity for experienced investors and novices alike.

Keep reading

Author photo

Ting Wang

5 Min Read

What you need to know before you buy Ripple in Australia

product

What you need to know before you buy Ripple in Australia

Ripple (XRP) is both a platform and also a cryptocurrency, XRP, developed by Ripple Labs. XRP is a token which facilitates the transfer of value across the Ripple Network. As of 2020, XRP Ripple is the fourth most valuable cryptocurrency. Although consumers can buy XRP, Ripple Labs created XRP for financial institutions to facilitate fast and frictionless cross-border transfers.

Keep reading

Author photo

Ting Wang

5 Min Read

Coinstash is a registered digital currency exchange based in Australia. Our customers praise Coinstash as one of the most user-friendly, educational, and supportive platforms. Through its live support 7 days a week, Coinstash has accumulated numerous positive reviews from its customers. Coinstash is also one of the only digital currency trading platforms that have participated in the Australian government Austrade’s landing pad program. Find more about BTC Price AUD (Australia) by visiting our BTC trading platform. Note: nothing in this article should constitute general or specific financial advice. Coinstash does not take into account your circumstances when publishing articles. Any content on Coinstash.com.au or related domains are informational only.