Launched in 2015, Cardano (ADA) is one of the largest and most popular proof-of-stake (PoS) blockchains. It takes a rather innovative peer-reviewed academic approach to developing its decentralized network.
This article is a comprehensive guide to the Cardano blockchain where we explore more about what it is and how it works. We will also take a closer look at Cardano’s native ADA token and its future price prospects, and lastly, determine whether it is a legitimate crypto project that can be a good investment.
What is Cardano (ADA)?
Cardano is a proof-of-stake (PoS), third-generation, general-purpose blockchain that set out to solve the scalability issues that plague most second-generation blockchains, such as Ethereum (ETH), causing them to charge high gas fees for transactions.
The project was founded in 2015 by Ethereum co-founders Charles Hoskinson and Jeremy Wood. While most blockchains rush to integrate the next big thing in tech onto their protocols, Cardano takes a more rigorous scientific approach along with copious amounts of academic research and peer review before upgrading its protocol.
Cardano is also the first blockchain to implement the Ouroboros PoS consensus algorithm, which is often described as more energy efficient than Bitcoin’s proof-of-work (PoW) consensus.
The fully decentralized network is governed by ADA holders and funded using a small portion of its transaction fees.
How Does Cardano Work?
The main goal of Cardano is to become the most environmentally sustainable network in the blockchain space. The blockchain’s unique Ouroboros proof-of-stake consensus aims to solve the scaling issues that have curtailed the first-generation and second-generation blockchains such as Bitcoin (BTC) and Ethereum (ETH).
Rather than using a network of miners racing to solve a puzzle, like how it is done on the Bitcoin network, Cardano employs network participants called validators, who instead of contributing processing power to secure the network and verify transactions as miners do, stake the ADA token.
The blockchain selects a transaction validator based on the amount of ADA each validator has in the pool and the length of time they’ve deposited it in there. Technically, Cardano rewards its most invested participants.
Once the winning validator has validated the latest block of transactions, other validators can verify whether the block is accurate. When a threshold of attestations has been reached, the network will update the blockchain.
All participating validators receive their rewards in ADA, which is distributed by the network in proportion to the amount of ADA staked by each validator.
What is ADA?
ADA is the native cryptocurrency of the Cardano network. It is named after Ada Lovelace, a 19th-century mathematician often known as the world’s first computer programmer.
The token is literally what fuels the Cardano blockchain. It is used to pay transaction fees and is staked by network validators who want to help maintain the security and stability of the blockchain in exchange for earning rewards.
ADA is also the governance token of the blockchain that allows holders to vote on changes and upgrades to the Cardano network.
ADA Price Prediction: 2024, 2025, 2030
At the time of writing, Cardano (ADA) is trading at $0.586 – up 2% in the last 24 hours.
Based on the technical analysis of ADA prices, the token is expected to trade between a minimum rate of $0.354 and a maximum price of $0.483 in 2024. The average trading price for Cardano during the year is forecast to be around $0.611.
After analyzing the price of Cardano in previous years, it is assumed that ADA could trade between $1.08 and $1.31 in 2025. The average trading price for ADA next year is expected to be $1.12.
By the time 2030 rolls around, experts forecast ADA to trade between $7.12 and $8.46. The average cost of the token is expected to be around $7.37 during the year.
| Year | Average Price |
|---|---|
| 2024 | $0.611 |
| 2025 | $1.12 |
| 2030 | $7.37 |
How To Buy Cardano (ADA)?
The most popular exchanges to purchase Cardano (ADA) tokens from are the following:
Is Cardano A Good Investment?
Cardano is an innovative and unique blockchain project that aims to rectify issues related to scalability and transaction costs faced by first and second-gen blockchains such as Bitcoin and Ethereum.
As a third-generation blockchain that takes a peer-reviewed approach when it comes to developing its protocol, Cardano has the potential to become a dominant smart contract platform. Its Ouroboros PoS consensus mechanism is one of the most unique in the sector.
All things considered, I can surely say that a cryptocurrency project idealized by the co-founder of Ethereum and one with a market capitalization of over $20 billion is legitimate. Cardano is a truly ambitious project that will have a lasting effect on the crypto and blockchain sector as it has a bright future ahead of itself.
However, it should be noted cryptocurrencies are prone to extreme market volatility and ADA is no different. Therefore, it is important to do your research when it comes to making crypto-related investments. Also, make sure that you only invest money that you can afford to lose.
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