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What is Cardano (ADA)?

Cardano basic info

Name:Cardano
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Introduction:

Cardano is a decentralized third-generation proof-of-stake blockchain platform and home to the ADA cryptocurrency. It is the first blockchain platform to evolve out of a scientific philosophy and a research-first driven approach.

What is Cardano (ADA)?

The Cardano platform has been designed from the ground up and verified by an industry-leading combination of top engineers and academic experts in the fields of blockchain and cryptography. It has a strong focus on sustainability, scalability, and transparency. It is a fully open source project that aims to deliver an inclusive, fair, and resilient infrastructure for financial and social applications on a global scale. One of its primary goals is to bring reliable, secure financial services to those people who do not currently have access.

Cardano has been designed with security as one of its founding principles. It is written in Haskell, a functional programming language. In a functional language like Haskell, building your system using pure functions is encouraged, which leads to a design where components are conveniently testable in isolation. Furthermore, the advanced features of Haskell enable us to employ a whole range of powerful methods for ensuring the correctness of the code, such as basing the implementation on formal and executable specifications, extensive property-based testing, and running tests in simulation.

Cardano is developing a smart contract platform that seeks to deliver more advanced features than any protocol previously developed and will serve as a stable and secure platform for the development of enterprise-level dApps. In the near future, Cardano will use a democratic governance system that allows the project to evolve over time, and fund itself in a sustainable way through a visionary treasury system.

Why Cardano?

Cardano is an open source proof-of-stake blockchain project that began in 2015 to address existing blockchain challenges in the design and development of cryptocurrencies. It aims to provide a more balanced and sustainable ecosystem that better accounts for the needs of its users as well as other systems seeking integration.

The first generation of blockchains (like Bitcoin) offered decentralized ledgers for secure cryptocurrency transfer. However, such blockchains did not provide a functional environment for complex deal settlement and decentralized application (Dapp) development. As blockchain technology matured, the second generation (like Ethereum) provided more enhanced solutions for writing and executing smart contracts, application development, and the creation of different token types. On the other hand, the second generation of blockchains often faces issues in terms of scalability.

Cardano is conceived as the third-generation blockchain as it combines the properties of the prior generations and evolves to meet all the arising needs of users. When comparing blockchain properties, many aspects should be considered. Thus, the best solution must ensure the highest security, scalability (transaction throughput, data scale, network bandwidth), and func·tionality (besides transaction processing, the blockchain should provide all means for business deal settlement). Moreover, it is important to ensure that blockchain technology is constantly developing in terms of sustainability and is interoperable with other blockchains and financial institutions.

Building Cardan Two layers of the Cardano blockchain

The Cardano ecosystem is built as a third-generation blockchain platform consisting of two layers — a settlement layer (CSL) and a computation layer (CCL) that serve as the fundamental components of every transaction.

Cardano Settlement Layer (CSL)

Cardano’s developers wanted to build a system that separates the value of a transaction from its computational data.

The Cardano Settlement Layer is designed to manage the movement of the value (or the currency) between the sender and the receiver. In other words, the settlement layer is the routing layer for all the control layers and systems.

The CSL uses two dedicated ing languages — Plutus and Marlowe — for moving the value and enhancing support for overlay network protocol.

Cardano Computation Layer (CCL)

The Cardano Computation Layer helps Cardano to replicate the Bitcoin (BTC) ecosystem’s smart contract platform, Rootstock (RSK blockchain). The reasoning behind CCL’s implementation lies in its ability to help scale specialized protocols over the years. This involves adding hardware security modules (HSM) to the existing stack of protocols as technology advances.

The two layers of the Cardano blockchain allow the ecosystem to proactively implement changes to support faster and more secure transactions while eliminating any user metadata that proves to be irrelevant to the process.

Cardano roadmap: Exploring the five eras

The development of the Cardano ecosystem follows a five-step process where each step represents a set of functionalities to be implemented sequentially over time. The five steps or eras of the Cardano roadmap are Byron, Shelley, Goguen, Basho, and Voltaire.

Byron — Foundation

The Byron era represents the two years of development (2015–2017) in which the first version of the Cardano blockchain was launched, and the ADA cryptocurrency debuted. The in-house ADA token was named after Ada Lovelace, an English mathematician credited for her work as one of the first computer programmers.

Along with the launch of the Cardano blockchain and ADA token, IOHK and Emurgo released official ADA-supported wallets named Daedalus desktop wallet and Yoroi light wallet, respectively. Let’s check out some of the main differences between the two Cardano ADA wallet offerings.

Shelley — Decentralization

The Shelley era is dedicated to the growth and development of the existing Cardano ecosystem. The network was federated throughout the Byron era, but as the Shelley era continues, more and more nodes will be operated by the Cardano community. One of the main goals of this phase is to decentralize the node network by involving more network participants and is aimed at achieving greater security and robustness.

This stage also sees the introduction of a reward system and staking principles that encourage users to participate in the Cardano ecosystem.

Goguen — Smart Contracts

The Goguen era represents the introduction of smart contracts and decentralized applications (DApps) in the Cardano blockchain. This phase of development runs parallel to the Shelley era and is focused on the creation of a purpose-built smart contract development language and execution platform, Plutus.

Once implemented, Plutus will enable users to create and execute functional smart contracts on the Cardano network without prior technical knowledge. This era also sees the introduction of Marlowe, a domain-specific language (DSL) for financial contracts built on Plutus.

In addition, the Goguen era will add support for a multi-currency ledger that will enable users to create new natively-supported fungible and nonfungible tokens.

Basho — Scaling

The Basho era is dedicated to improving the underlying performance of the Cardano network in terms of operability, scalability, and optimization. Core developments include sidechain implementations with enormous potential to expand the network's capabilities. By offloading work from the main chain onto a sidechain, sidechains can be used as a sharding technique to boost the network's capacity. They can also be used to test new features without compromising the main blockchain's security.

Voltaire — Governance

The Voltaire era is the final stage of the Cardano roadmap dedicated to building a self-sustaining governance system supported by the network participants. This phase will introduce voting and treasury systems, allowing users to share network improvement proposals and fund the suggested developments. Following the voting process, a portion of all transaction costs will be pooled to generate cash for development activities.

The completion of this phase will signal a truly decentralized Cardano network, working independently of IOHK's management. This means that Cardano will be completely decentralized and will no longer be managed by IOHK once both a vote and a treasury mechanism are in place. Instead, the community will be in charge of Cardano's future, with everything they need to expand and evolve the network thanks to IOHK's safe, decentralized foundation.

ADA — Cardano’s native cryptocurrency token

ADA is the in-house token of the Cardano blockchain that resides on the Cardano Settlement Layer. The maximum supply of the ADA cryptocurrency is limited to 45 billion tokens, to be released over time through minting. The hard limit on the total token supply guarantees a deflationary attribute to ADA. However, the ecosystem is destined to showcase an inflationary trend until the ecosystem releases a major portion of the reserves for circulation, estimated to initiate from 2030.

Just like any other popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), ADA can be exchanged for fiat currencies such as the United States dollar and stored on crypto wallets. In addition to Cardano’s native wallet offerings like Daedalus and Yoroi, third-party wallet services also support ADA storage and transfers.

Why Use ADA?

ADA and the Cardano ecosystem are supported by a strong community of investors and developers. As the cryptocurrency continues to gain momentum in terms of value, enthusiasts have slowly started accepting ADA as payment.

The most popular mode of payment is peer-to-peer (P2P) transfers between the sender and the receiver. In this type of transaction, the sender can send existing ADA tokens directly to the receiver’s wallet address with no intermediaries. With its rising popularity, businesses have started to integrate dedicated ADA payment gateways, allowing customers to make online purchases with ADA.

Cardano charges an average fee of 0.16 ADA per transaction. This calculation is based on two factors — a standard fee for each transaction and the size of the transaction. As a result, the transaction fees will increase based on the dollar value of the transaction.

Users can also earn ADA tokens by validating payment transactions on the Cardano blockchain, a process commonly known as staking. This involves adding your existing ADA holdings to a staking pool, which is then repurposed by the node operators to validate and confirm transactions in real-time.

Note that ADA wallets cannot be paired with multiple staking pools. Readers are advised to do their research and identify long-term benefits when staking cryptocurrencies.

The ADA staking rewards, or yields, are usually predetermined and vary from pool to pool. Every wallet can be paired with only one staking pool. Users are advised to do their research before making any investments or commitments to ADA staking pools.

Cardano (ADA) Token Distribution

Cardano distributed vouchers for 25.9 billion ADA in a public token sale from September 2015 to January 2017. Participants could redeem the vouchers for actual ADA through Cardano’s native Daedalus wallet. The three entities supporting Cardano’s development received 5.2 billion ADA following the mining of Cardano’s genesis block.

ADA’s Initial Supply: 31,112,484,644

Their allocation was as follows:

  • 2.46 billion ADA were allocated to IOHK which voluntarily adopted the following vesting schedule for its Ada: A third of IOHK’s ADA holdings were immediately available to IOHK. A third was made available on June 1st of 2018. The final third of IOHK’s Ada will be made available on June 1st of 2019

  • 2.07 billion ADA were allocated to Emurgo.

  • 0.648 billion ADA were allocated to the Cardano Foundation

Disclaimer: All products and projects listed in this article are not endorsements and are provided for informational purposes only.

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Current price:
All-time high:$3.1
All-time low:$0.01735

ADA supply and tokenomics

Circulating supply:35,126,170,000 ADA
Total supply:44,995,107,818.69 ADA
Max supply:45,000,000,000 ADA
Market cap:$32.06B
Fully diluted market cap:$41.07B
Token allocation:
ICO Sale
57.00%
Block Production
31.00%
EMURGO/IOHK/Cardano Foundation
12.00%
Tokenomics:

Uniqueness

Cardano is one of the biggest blockchains to successfully use a proof-of-stake consensus mechanism, which is less energy intensive than the proof-of-work algorithm relied upon by Bitcoin. Although the much larger Ethereum is going to be upgrading to PoS, this transition is only going to take place gradually.

The project has taken pride in ensuring that all of the technology developed goes through a process of peer-reviewed research, meaning that bold ideas can be challenged before they are validated. According to the Cardano team, this academic rigor helps the blockchain to be durable and stable — increasing the chance that potential pitfalls can be anticipated in advance.

In 2020, Cardano held a Shelley upgrade that aimed to make its blockchain “50 to 100 times more decentralized” than other large blockchains. At the time, Hoskinson predicted that this would pave the way for hundreds of assets to run on its network.

The Alonzo hard fork launch in September 2021 will bring an end to the Shelley era, and usher in the Goguen phase. Users can develop and deploy smart contracts on Cardano, allowing native decentralized applications (DApps) to be built on blockchain.

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What is the development prospect and future value of ADA?

The market value of ADA currently stands at $32.06B, and its market ranking is #9. The value of ADA is widely recognized by the market. When the bull market comes, the market value of ADA will likely continue to increase.

Moreover, if ADA can play a greater role in practical applications, such as Cardano builders fully leveraging the potential of ADA, partnering with more businesses, and increasing its user base, the long-term value of ADA will be significantly enhanced.

What will the price of ADA be in 2025?
Based on ADA's historical price performance prediction model, the price of ADA is projected to reach $1.06 in 2025.
What will the price of ADA be in 2030?
In 2030, the ADA price is expected to change by -5.00%. By the end of 2030, the ADA price is projected to reach $2.61, with a cumulative ROI of +183.33%.
Reminder: Just like all cryptocurrency investments, investors must closely monitor the market performance of ADA and be aware of the associated risks. The world of cryptocurrencies is full of uncertainties, so thorough research and preparation are essential.

Is ADA worth investing or holding? How to buy ADA from a crypto exchange?

If you want to buy ADA, the following information may be helpful for your investment decisions:
In the last 7 days, the price of ADA has fallen by -15.20%, leading to negative returns for most ADA investors. The market is currently pessimistic about the price trend of ADA.
It is important to note that the current price of ADA has retreated by -70.55% from its all-time high. This coin is currently considered high-risk, and while its price may rebound in the future, there is significant uncertainty.
Additionally, it's important to understand that each coin has its own optimal times for buying and selling. The optimal time to invest is dynamic: when a coin is undervalued, it's wise to adopt a buying strategy; when it becomes overvalued, you should decisively sell the coin.
To decide whether ADA is worth investing in, you need to consider various market factors such as the overall trend of the cryptocurrency market, the project's fundamentals, its current market valuation, and whether the current price is suitable for buying. If the project's fundamentals suddenly change or the price becomes excessively high, you should adjust your investment strategy and trading operations accordingly.
Your investment decisions should be based on your own risk tolerance, financial status, market analysis and research, especially the timing of your investments. Correct timing can ensure more reliable returns. Keep in mind that investing in ADA or any cryptocurrency comes with certain risks and uncertainties.
Regardless of your outlook on the development prospects and future trends of ADA, if you want to buy or sell ADA, you can consider Bitget for your trading needs. The best place to buy ADA is an exchange that offers hassle-free and secure transactions, combined with a user-friendly interface and high liquidity. Every day, millions of users choose Bitget as their trusted platform for crypto purchases.
Investing in Cardano has never been easier. Simply sign up on Bitget, complete the identity verification process, and make payments using bank transfers, debit cards, or credit cards, all while ensuring security through crypto wallets. This is a widely adopted method to buy Cardano. Here's a step-by-step guide on how to buy Cardano on Bitget.

How to get Cardano through other methods?

Using cash to buy Cardano is not the only way to obtain Cardano. If you have the time to spare, you can get Cardano for free.
Learn how to earn Cardano for free through the Learn2Earn promotion.
Earn free Cardano by inviting friends to join Bitget's Assist2Earn promotion.
Receive free Cardano airdrops by joining ongoing challenges and promotions.
All crypto airdrops and rewards can be converted to Cardano through Bitget Convert, Bitget Swap, or spot trading.

What is Cardano used for and how to use Cardano?

The use case of Cardano may expand as the crypto market and the project itself develop. Currently, you can use ADA to achieve the following goals:
Arbitrage by trading ADA: Since ADA is a frequently traded cryptocurrency, the price of ADA is always fluctuating. Earn more ADA by buying low and selling high on the exchange. Bitget spot market provides a variety of ADA trading pairs to fully meet your needs.
Earn by staking ADA: You can also generate income through financial management methods such as staking ADA or lending ADA. Bitget Earn offers a variety of financial products designed to help you earn more income from your ADA.
Send or pay ADA: If you want to give ADA to your friends, a charity, or a fundraiser, or you want to pay someone with ADA, you can quickly and easily send ADA to the recipient through their payment address.
You can also go to the official website of the Cardano project to learn more about the use cases of ADA. For example, find out if the project supports the use of within its community or ecology, or if the project allows you to purchase physical or virtual products in .

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