DeFi
September 28, 2022
What is Token Burn and it's effects on price
An A-Z guide on token burning and how it is largely impacting the cryptocurrency industry.
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With all the competition that is present in the crypto world, businesses as well as individuals try to find a way to make the most profit by using their money in the best possible way. This is also the reason that all the blockchain networks try to bring out new features or improve their already existing network to aid the users on them.
Cardano is one such blockchain which is not only a complete blockchain in itself, but also is designed to improve the activities on the Ethereum network. In this article, we will be taking a closer look at the Cardano project, its features, and some stats about ADA which is Cardano’s native token.
Cardano is a blockchain network which claims that its aim is to enable all the changemakers, visionaries as well as innovators to bring a much needed positive change to our world. Cardano is a Proof-of-Stake blockchain that is amongst the top most used networks in the world.
One of the other goals of this open-source blockchain is to redistribute power from structures that may be unaccountable to the margins to the individual users. This would help in creating a society that is much more secure than before along with being transparent as well as fair.
Cardano is mostly used by some agricultural businesses who track their fresh produce from field to fork. Some other products that were built on this network enable educational credentials to be stored in a way that is tamper-proof or secure. This also lets the retailers reduce the fake goods in circulation.
The network Cardano was named after the 16th century Italian Polymath Gerolamo Cardano. ADA is the native token of this network and it got its name from the 19th century mathematician Ada Lovelace who is someone people consider to be the first ever computer programmer.
The ADA token was made to ensure that the owners can participate in all the operations this network provides. What this does is that it provides the owners with the authority to vote on any proposed changes on the blockchain. Cardano is showing a lot of promise and that is why a lot of decentralized apps and smart contracts have been developed on it.
Charles Hoskinson, who has previously been one of the co-founders of the Ethereum blockchain, was the founder of the Cardano network. Cardano's blockchain was built by the company IOHK and Charles Hoskinson is the CEO of IOHK.
Charles has previously said that he got interested in the crypto world in the year 2011 and then started learning more and more about how mining and trading is done. In the year 2013, he created a course about Bitcoin, which around 80,000 students attended. This was what led to his professional involvement in the crypto world.
Charles is a mathematician and a technology entrepreneur and these are the things that helped him to become the founder of Cardano. This blockchain was founded in the year 2017 and it has only reached new ATHs from then on.
ADA is the native token of the Cardano Network which allows users to participate in the various operations of the Cardano network. Let’s take a look at the stats of ADA token as of the date 29th of July 2022.
The Cardano network is the third generation blockchain based on Proof-of-stake consensus mechanism. This network has ADA as its native token. The whole Cardano project revolves around one single purpose i.e. security.
As Cardano is a decentralized blockchain, the transactions are maintained on a distributed ledger. This ledger is maintained by the collection of nodes which validate transactions, add new blocks to the blockchain and share the data with its peers.
The Network is designed to process about 250 transactions per second. However, there is a possibility that the number of transactions initiated can be higher than that of Cardano’s defined limit. To avoid the network congestion, the network utilizes a feature known as Congestion control which then manages the workload.
Let’s take a look at the primary aspect of the Cardano project, Security.
As already discussed, the Cardano network has kept “security” at the center of their project. Cardano has been programmed using Haskell language which is a very functional and secured programming language.
Haskell allows each component of the blockchain to be isolated when required so that testing of one component won’t affect the whole blockchain. This programming language also provides a wide range of powerful tools which can be used for development and testing purposes.
Cardano is working on its smart contract platform which will provide a secure and stable environment for development of dApps on the Cardano network.
Proof-of-Work is considered as the most secured consensus mechanism. However, the system is not economical and energy efficient. Thus, Cardano network is based on a proof-of-stake consensus protocol known as Ouroboros which offers security of the same level as PoW system while being energy efficient.
Cardano is one of the best performing cryptocurrencies this year with #9th rank on coinmarketcap. Here are some of the advantages of Cardano which makes it stand out from the rest of the cryptos.
Cardano is meant to improve scalability of Ethereum. Ethereum processes 15 transactions per second whereas Cardano can handle more than 250 transactions in a second. Thus, it offers greater speed improvements over Ethereum blockchain.
Cardano was developed in 2017 and thus like most new age cryptos makes use of the PoS system. Due to a more efficient PoS system, Cardano network requires a nominal gas fee of 0.1 ADA which is below a dollar considering ADA’s current value.
Any user can be a part of node and become a validator for Cardano network, thus ensuring decentralization. The Ouroboros PoS system helps the network to maintain a higher degree of decentralization. Currently there are more than 1500 validator pools in Cardano network.
Even after excelling at most of the aspects, Cardano has lost its position in the market due to several reasons. Before you make up your mind about Cardano let's take a quick look over some cons of Cardano.
There are still a lot of incomplete smart contracts and projects which are yet to be implemented on the network. Therefore, making it inaccessible and unusable for many people. The release time given for features in the roadmap are lagging behind and the team’s response is quite slow.
The Cardano network can undergo a certain upgrade or change if the majority number of token holders vote on a specific decision. The token holders are not necessarily always blockchain experts and hence unrequired updates could lead to downfall of Cardano.
Cardano network is currently losing its popularity with the entry of Solana into the market. The Solana blockchain is said to be better in a lot of aspects and hence preferred by most people. Additionally, the larger active community of Solana can also be a threat to Cardano’s future.
Cardano is one important project amongst the mainstream cryptocurrencies. The advantages Cardano comes with definitely outperform the disadvantages and thus makes it a strong choice for many users.
I hope this article gave you a better understanding of the Cardano project and performance of ADA. If you wish to know more about Cardano, head to their official website, where you can find all the latest features and partnerships of Cardano.
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