What is Cardano?
Cardano is a third-generation proof-of-stake blockchain.
Cardano, like Ethereum, will allow developers to use the Cardano blockchain for familiar features, including running custom programming logic (smart contracts) and building programs (decentralised applications). Cardano launched its smart contracts on testnet in May 2021, with a mainnet launch to follow later in the year.
However, Cardano is working on solving the scalability and energy consumption problems that its predecessors, such as Bitcoin and Ethereum have.
Cardano differs from the other projects by emphasising a research-driven approach to design, aiming to achieve an academic rigour it believes will propel the adoption of its technology.
For example, its consensus algorithm, Ouroboros, has been deemed “provably secure” by process of formal review. Additionally, Cardano’s code was written in Haskell programming language, commonly used in the banking and defence sectors.
How does it work?
Unlike Bitcoin’s Proof-of-work model, Cardano uses a proof-of-stake consensus mechanism to secure its blockchain.
Proof-of-stake is a mechanism that allows for the network to act in their own best interest, and through this action, of acting in your own best interest, you inherently end up securing the network.
It does this by allowing the network to have a vested interest in the network itself, by enabling users to stake their assets on the network. This is a similar concept to having equity in a company you work for. Suddenly, you have a vested interest in the company, and you really care about how the company performs from one quarter to the next. You have a stake in the company’s success, and now you’re a “stakeholder”.
Cardano’s primary use case is to allow transactions in its native cryptocurrency, ADA, and to enable developers to build secure and scalable applications powered by it.
The Cardano Blockchain structure
The Cardano blockchain is divided into two layers:
- The Cardano Settlement Layer (CSL) – The CSL is used to transfer ADA between accounts and to record transactions.
2. The Cardano Computation Layer (CCL) – The CCL contains the smart contract logic that developers can leverage to programmatically move funds.
Further, computers running the Cardano software can join as one of three nodes:
- mCore nodes – Stake ADA tokens and participate in blockchain governance
- Relay nodes – Send data between mCore nodes and the public internet
- Edge nodes – Create cryptocurrency transactions.
Why invest in Cardano?
- Solving scalability and high fees
Cardano seeks to offer many of Ethereum’s most compelling capabilities, such as robust smart contracts. Meanwhile, Cardano was designed to support fast transactions with minimal transaction fees. Therefore, solving the current issues Ethereum is facing.
2. Reducing blockchain energy consumption
With everyone worrying about the energy consumption required to secure blockchain networks, Cardano has been built to be an energy-efficient blockchain since day one. This feature could play a vital role in Cardano’s future success and adoption.
For all the hard money enthusiasts out there, Cardano has you covered. Unlike Ethereum, Cardano has a strict cap of 45 Billion coins on its total diluted supply.
4. Third-generation blockchain exposure
Cardano is the world’s largest third-generation cryptocurrency; therefore, it is an ultimate asset to buy if you are looking to gain exposure to this universe.
Recently, we have seen Cardano starting to show a rather large price appreciation, but what has this growth been driven by?
There are a couple of factors that are at play:
- The overall cryptocurrency market has seen a strong recovery from the July lows.
- The growing interest in the smart contract sector.
- But, most importantly, it was the announcement that Cardano’s software update will bring the long-awaited release of Cardano’s smart contract capability.
Below we can see how Cardano has outperformed many other investment assets over the past 12 months.
A single R1 000 investment in Cardano would have translated into + R16 196. This is substantial when compared to many alternative investments. In fact, this is a return on investment over 4x greater than if you had invested in Bitcoin over the same period (+ R3 681).
Where do I buy Cardano?
Investment platform Revix is adding Cardano to its product offering on Friday, the 27th of August 2021.
Due to the hotly anticipated release of Cardano, Revix has decided to run a two-fold promotion:
- The first 600 new sign-ups will receive double their initial deposit up to R500 using the promocode: DOUBLEUP – this promotion is valid from the 17th to the 31st of August 2021, so do not miss it.
- There will be zero buying fees with ZAR and GBP on Cardano purchases for one week (27th of August – 2rd of September).
Through Revix, you can also gain access to their ready-made “Crypto Bundles”. These Bundles allow you to own an equally-weighted basket of the world’s largest and, by default, most successful cryptocurrencies.