Cardano is a proof of stake (POS) cryptocurrency that has a market capitalisation of $70billion. This makes Cardano coins the 4th largest coin by market cap. The coin can be likened to Ethereum however with two separate layers for the computation and settlement of transactions. Should I Buy Cardano Coin?
Cardano Price Today
The price of Cardano has increased by 2,240.96% in the last twelve months to trade at today’s price of $2.27 and a market capitalization of $72billion. This makes ADA the fourth-largest cryptocurrency by market cap.
About Cardano Coin
Cardano coin combines two collections of protocols, one for the computation and one for the settlement of transactions. In reality, it seems to be a combination of ETH and Bitcoin and trying to incorporate the best features of each.
Transaction Settlement: Cardano coin employs a protocol called the Cardano Settlement Layer (CSL)
Computation and Functions: Similar to Ethereum, Cardano employs a turning complete functional programming layer called the Cardano Computational Layer (CCL).
Within the Cardano platform, Ada exists on the settlement layer. This layer is similar to Bitcoin and keeps track of transactions. The second layer is the computation layer. This layer is designed to be similar to Ethereum, enabling smart contracts and applications to run on the platform
The consensus of the network is determined by a Proof-of-Stake, meaning that the community can stake ADA on the network in order to ‘vote’ on the legitimacy of transactions. Recently ETH announced the move from Proof of Work to a Proof of Stake mechanism to combat the rising ‘gas’ prices.
Cardano is a fixed supply coin, meaning that there is a limited amount of coins that can exist in the network. The development team have capped this amount to 45,000,000,000 coins.
Should I Buy Cardano Coin – Summary Statistics
Cardano network was founded in 2017 by a team of devs lead by Charles Hoskinson who was also a co-founder of Ethereum. The coin is now the 4th largest by market capitalisation and also currently the largest POS coin.
|Inception of Network||27 September 2017|
|Current Price (USD)||$2.27|
|Coin Market Cap (USD)||$72,586,112,238|
|Circulating Supply (As of Writing)||33,117,618,880|
|Current Mining Block Reward||Varies|
|Is Fixed Supply (Coin-Cap)||Yes|
Cardano has a fixed supply of 45billion ADA, which is similar to Bitcoin which has a fixed supply of 21million bitcoins.
Should I Buy Cardano Coin – History
Cardano Coin ICO
When was the Cardano ICO? Cardano Coin launched in 2017 after $62.2 million ICO.
What was the Cardano ICO Price?
Cardano ICO was conducted at a price of 1 ADA = 0.0024 USD
Cardano Coin Development
The development of Cardano Coin can be divided into the five below categories, whilst each of these seems to be consecutive the development of all five arms is actually occurring simultaneously.
- Byron (Foundation)
The foundation of Cardano consisted primarily of the development of the ouroboros consensus mechanism, the ADA currency which will serve as the underlying for the smart contracts platform and other core services.
- Shelley (Decentralization)
Marked the shift from being hosted on developer servers to being pushed to community servers and enabling the decentralised nature of the network. This release introduced staking pools, multi-signature transactions and networking protocols.
- Goguen (Smart contracts)
Integration of a turning complete programming language to the platform called Plutus. Enabling a multi-currency ledger to compete with ERC-20 and a virtual machine for development.
- Basho (Scaling) (Work in Progress)
Basho era will see Cardano become one of the most high performance, resilient, and flexible blockchain platforms in the industry. This will provide network infrastructure with the capability to scale in a sustainable, secure way, as well as the ability to add new functionality without compromising the reliability at the core of the network.
- Voltaire (Governance)
This phase of the development will introduce a voting and governance system to the network. This will enable holders to vote using their stake to influence the future development of the network. This would be similar to BTC fork in a way that a fork is only accepted should the majority of nodes agree with the change. This final stage also means a move from the IOHK dev team and transfers complete ownership across to the community of devs.
Is Cardano Anonymous?
Is Cardano Anonymous? Cardano public wallet addresses are not directly linked to any personally-identifying information. However, transactions on the ADA blockchain are publicly available for inspection. This means that should your identity be able to be traced to your public wallet address then in theory all your transaction history would be available on the blockchain. Should I Buy Cardano Coin
How Is the ADA Network Secured?
The Cardano network is secured through a proof of stake consensus mechanism. This mechanism is called Ouroboros. The POS network consensus mechanism is more energy efficient when compared to the proof of work mechanism used by bitcoin.
POS varies to POW by randomly selecting participants (stake pools) to issue new blocks to the blockchain-based on the stake that they control in the network.
The protocol is guaranteed to be secure so long as 51% of the stake – in the case of Cardano, ada – is held by honest participants. So similar to both Bitcoin and Eth, ADA coin is also susceptible to 51% of attacks on the network. However, due to the market capitalisation individuals are disincentivised to be dishonest as compromising the network would ultimately mean that the individuals stake would surely become worthless.
What is ADA Staking and Staking Pools?
The ability to stake Cardano to the network is the key to the operation of a safe and secure network. Holders of ADA can stake their coins to the network as part of liquidity pools and earn staking rewards.
Holders can choose to create their own stake pool or delegate their ADA to a stake pool run by someone else. The larger the stake pool, the more chance there is that the ouroboros mechanism will choose that pool to commit transactions to the blockchain.
When a block is committed to the chain, the holders in the chosen stake pool will receive an incentive or reward.
What is the current Cardano Block Reward?
The current rate Cardano for delegating stake in ADA to a staking pool sits between 1-7% APM. However, there is not actually a fixed block reward such as used for ETH instead Cardano uses a formula to split up rewards based on the work completed. Hence, it is hard to say how much a reward will be until the time (epoch) is over.
Further information can be found in the design specification for delegation and incentives in Cardano.
Cardano Proof of Stake
In ADA Coin staking replaces the need for hashing power in a proof of work system such as BTC. Instead of being randomly selected to commit a block to the chain based on the bias towards hashing power, the ouroboros system chooses this with a bias towards the amount of stake.
In Cardano time is separated into both slots and epochs (20 seconds, and 5 days respectively). A slot is interchangeable with a block. The system then randomly selects a slot leader to verify the transactions.
The more stake that is committed towards a staking pool there is the higher chance that said staking pool would be randomly selected to commit the next block to the chain.
Should I Buy Cardano Coin – Prophets Take
Cardano is still a speculative coin similar to most other altcoins in our opinion. Although as one of the largest gen 3 blockchain products there may be some potential here.
It is important to remember when investing in a speculative market only invest what you are willing to lose. Whilst the potential upside is significant the downside risk is also very present.
We like the technology that Cardano is using and by adopting a proof of stake consensus mechanism as opposed to POW the system should ultimately be more energy-efficient, whilst the security of the network is still being enforced.
Prophet currently holds a minor amount of cryptocurrencies in their portfolio and ADA is inside. The Crypto and NFT space seem very reminiscent of the dot com boom in 2000. Investor’s who invested at the very top of the dot com boom (if the company stayed afloat) typically had to wait numerous years prior to turning a profit again.
The crypto space at the moment is highly speculative and people buying should ensure they are investing in projects which are inside their circle of competence to make a judgement on if they are good or poor investments.
Prophet is bullish on the crypto space as a whole, however, some of the valuations of the coins compared to the actual functionality of the coins seems a little skewed. Cardano seems to be one of the more promising projects in the crypto space. Whilst the technology is good and the ideologies behind cryptos seem just, we suspect there will be numerous failed coins until the technology matures.