To me, ADA is the non-bankers XRP. I made my first transaction of tens of thousands of ADA yesterday, it look about a minute, and cost about 40 cents (not quite as cheap as XRP) – scalability, fast, low transaction costs. These are the features which make a coin a winner.
The other thing that sold me, is that ADA has a team of dedicated people behind it, much like XRP. There is the Cardano Roadmap, which is a well laid out timeline of what the team behind Cardano has in plan for the platform and ADA. One important thing is that Shelly will be implemented in Q2 of this year, essentially leading to the process of decentralization! Of most importance in the short-term, is the staking which will be ready. Unlike Bitcoin, which is based on proof-of-work, ADA is based on proof-of-stake. Basically with proof-of-work, miners use computing power to verify new blocks, which contain new transactions. This requires a lot of energy consumption, but once validated, essentially allows the new block to be placed in the blockchain. As the name implies, it is proving the “work” that happened during the transaction. It then rewards the miners with new coins – this led to competition to mine, and thus top miners have powerful performing hardware leading to high energy consumption.
Proof-of-stake on the other hand, requires much less energy, and does not reward the validator (in this case, a forger, not miner) with new coins, but rather, the transaction fees. Also, validators are chosen based on the amount (stake) they hold, and the age of the stake. This gets rid of the competition that led to the BTC energy consumption fiasco. With proof of stake, you only need enough energy to power a blockchain’s core software. You don’t need to waste energy on an ASIC and a cryptographic hashing program. As far as the Cardano project is concerned, “stakeholders are able to delegate their obligations to others — so-called stake pools — which are able to fulfill the obligations. Stake pools operate core nodes that are online at all times and take part in the protocol and produce blocks in the blockchain.” In addition, stakeholders are able to have voting rights to proposed updates to the system. This means that we all, as a community, will take part in the validation and development of the Cardano network, this is full decentralization.
Cardano is also working with governments (and thus regulations) and companies to implement and eventually have the ADA cryptocurrency used in every aspect of our lives, whilst still playing by the rules yet maintaining decentralized privacy for P2P users. One feature I like, is that there will eventually be an ADA debit card, so that you can essentially used ADA to shop and buy things as you normally would, and the ADA will automatically be converted into the local currency. This is a step to worldwide usage of ADA. Cardano is also implementing the Sidechain, which allows new technologies to be added without forking (creation of another coin essentially). Another feature I like about ADA is it is already a nicely developed package. Unlike Bitcoin, Ethereum, or Ripple, the Cardano team has already developed a safe and trustable ADA wallet, The Daedalus Wallet. That means the moment you purchase your ADA, you don’t have to rely on a third-party wallet, and spend time researching which is safe and trustworthy.
The Daedalus Wallet. Cardano’s own ready-to-use secure and safe wallet.
Eventually, Cardano in its final stages will implement smart contracts, allowing the transfer of ADA for contractual agreements to be digitally verified, without the need of a third party – true decentralization. This is what I look forward to the most. When banks, institutions, hospitals, governments, businesses and everyone will be using ADA – global adoption.
To purchase ADA, register on Coinbase, then purhcase ETH (not BTC, it’s too slow with high fees). Then register on Binanace, and send the ETH from your Coinbase account to your Binanace account. Then buy ADA on Binance, using the ETH. This is the simplest way, until ADA/fiat pairs become available.
If you enjoy the content, don’t forget to subscribe (on the right-hand sidebar) or follow me on Twitter to get the latest blogs by email.
Disclaimer and disclosure: This post is my own personal opinion. I am not a professional financial adviser and am not responsible for your own investment outcomes. At the time of writing this post, I hold units of XRP and ADA.
Categories: Cardano ADA