Cardano, established in 2015, ranks among the largest cryptocurrencies globally in terms of market capitalization. The cryptocurrency associated with Cardano is known as ADA, although many individuals use the terms ADA and Cardano interchangeably.
Cardano functions not only as a cryptocurrency but also as a blockchain and a platform intended for running decentralized applications through smart contracts. In simpler terms, this refers to software that operates on the blockchain. Cryptocurrencies with this capability are frequently termed “layer 1” or “L1” cryptocurrencies, indicating that they serve as a base for developing additional applications. Ethereum is another example of an L1 cryptocurrency, similar to Cardano.
Developers of various crypto initiatives can construct their solutions on Cardano’s blockchain, which simplifies and secures the development process compared to creating a new blockchain from the ground up. The ADA cryptocurrency plays a crucial role in this ecosystem, utilized for multiple purposes, including network security and transaction payments. Consequently, the value of ADA is closely tied to the expansion and prosperity of the Cardano ecosystem.
On September 12, 2021, Cardano’s primary network was launched as part of the Alonzo software update, enabling developers for the first time to build decentralized applications on the network.
What defines a blockchain?
A blockchain serves as a database containing information that is protected through a decentralized network of participants. A database comprises a collection of data. This information is organized into blocks, with each block linked sequentially, thus forming a “blockchain.”
Typically, the data recorded in a blockchain consists of transactions. In contrast to a centralized entity managing data storage, the majority of blockchains rely on cryptographic methods and a decentralized global network of individuals. This network collectively ensures the storage and security of the information within the blockchain while reaching a consensus on the data recorded.
A distinguishing characteristic of blockchains compared to conventional databases is that the information within a blockchain cannot be altered or modified by any individual participant alone.
Key facts regarding Cardano:
Cardano is a platform designed with a focus on sustainability, aiming to tackle the high energy consumption issues present in existing blockchain technologies. Similar to Bitcoin and Ethereum, Cardano is decentralized, allowing users to send ADA globally without reliance on a central authority.
Cardano operates as an open protocol, meaning anyone can contribute to the network’s security, process transactions, or develop decentralized applications on its blockchain. Unlike Bitcoin’s blockchain, which is secured through energy-intensive Proof of Work, Cardano employs a Proof of Stake model, utilizing ADA as a form of security.
The ADA cryptocurrency is named after Ada Lovelace, a British countess recognized as the first computer programmer in history. The smallest denomination of ADA is termed a lovelace, where 1 lovelace equals 0.000001 ADA. This feature allows for very small transactions that traditional currency systems cannot accommodate, making it possible to own, for instance, 0.1 ADA.
Who is behind Cardano, and what’s the background?
Cardano was created by Charles Hoskinson, one of the co-founders of Ethereum. The development of the Cardano platform began in 2015.
Hoskinson envisioned tackling the three foremost challenges confronting all blockchain networks: scalability, interoperability, and sustainability.
The platform debuted in 2017, along with its cryptocurrency, ADA.
Hoskinson departed from Ethereum following a disagreement with his co-founders, including Vitalik Buterin. While Buterin preferred a non-profit approach to Ethereum’s development, Hoskinson advocated for a for-profit entity to be involved in its further advancement.
Due to these conflicts, Hoskinson left Ethereum and established Input Output Hong Kong (IOHK), a for-profit company, in 2014. He has been leading the development of Cardano since 2015 as the head of IOHK.
Three primary entities hold the main responsibility for advancing Cardano’s protocol and ecosystem:
- IOHK, a for-profit organization focused on developing the Cardano platform.
- The Cardano Foundation, a non-profit organization dedicated to promoting, securing, and standardizing Cardano’s protocol.
- Emurgo, a global technology firm that manages commercial adoption of the Cardano protocol and facilitates integration with various businesses.
Cardano’s development is driven by research, utilizing the Haskell programming language and founded on peer-reviewed research from academics and specialists worldwide.
How can you purchase and keep Cardano?
There are mainly two methods for acquiring ADA. You can purchase ADA via a cryptocurrency exchange or from a private individual who wishes to sell their ADA.
Regardless of the method chosen, it is essential to store your ADA in a digital cryptocurrency wallet.
You have the option of creating an account on a crypto exchange and allowing the exchange to manage your cryptocurrencies or setting up a decentralized Cardano wallet where you handle the storage and security of your ADA.
How to buy and store ADA using a crypto exchange
A convenient and affordable way to buy and store ADA is through a crypto exchange such as Firi. Firi simplifies the process of buying, selling, and storing your ADA and other cryptocurrencies.
When you sign up for an account with Firi, a Cardano wallet is automatically created for you. This means that Firi securely holds your ADA for you, eliminating the need for you to manage the security of your Cardano wallet.
You can access your Cardano wallet by logging into your account using your email or Vipps, and confirming your identity with BankID. It’s easy to send and receive ADA to your Firi wallet from other exchanges or other Cardano wallets.
How to buy and store ADA in three simple steps.
You can purchase cryptocurrency any time, day or night, and Firi facilitates easy exchange between ADA and NOK. Additionally, you can sell your ADA for NOK and transfer it to your bank account within less than one business day if you choose.
Store ADA in a decentralized wallet
As Cardano operates on a decentralized network, it allows you to create a private Cardano wallet for storing your ADA.
When you establish a digital wallet directly on the Cardano network, you receive a public key and a private key connected to your wallet.
A public key can be likened to an account number for your Cardano wallet. For instance, to receive an ADA transfer, the sender needs your public key associated with your Cardano wallet.
You can safely share your public key with others. A public key consists of a unique combination of letters and numbers specific to your Cardano wallet.
Conversely, a private key can be viewed as the password for your digital wallet. A private key is also a unique mix of letters and numbers specific to your Cardano wallet.
A private key can also be generated in the form of a seed phrase, which is essentially a sequence of 12 words that acts as a backup for your private key. If someone gains access to your private key or seed phrase, they will have access to all your cryptocurrency. Thus, it is crucial not to disclose your private key to anyone.
It is vital to understand that a Cardano wallet exclusively supports ADA. For instance, if you send ADA from a Cardano wallet to a Bitcoin wallet, the ADA sent will be lost permanently with no means of retrieval.
You must be extremely careful when sending and receiving cryptocurrency to ensure you use the correct public key.
The most common method for purchasing ADA is through a cryptocurrency exchange. Firi allows you to easily obtain ADA and other cryptocurrencies using Norwegian kroner. After buying cryptocurrency from Firi, you can decide whether to let Firi manage the storage or transfer it to a distinct decentralized wallet.
When a Cardano wallet is created, a public key is generated that functions as an account number and a private key that serves as a password for your wallet. If someone obtains your private key, they will have access to all your cryptocurrency, and no external entity can assist you in recovering your funds.
How does Cardano function?
It is possible to send and receive ADA via Cardano’s platform without needing an intermediary. Cardano also allows developers to build decentralized applications.
Bitcoin and Ethereum utilize Proof of Work as their consensus mechanism, which is the process that allows participants in the network to come to a shared agreement on the information recorded on the blockchain. This method of transaction verification can be highly energy-consuming, as it relies on computational power and energy.
In contrast to Bitcoin and Ethereum, Cardano has developed its own consensus mechanism called Ouroboros, which is based on Proof of Stake and is designed to be environmentally friendly.
Starting in 2020, Ethereum also began transitioning from Proof of Work to its form of Proof of Stake.
What is Proof of Work?
Proof of Work was originally brought to attention through Bitcoin. The Bitcoin blockchain is protected by a network of “miners” who utilize computational power to verify that the data in the network is accurate.
In contrast to a bank’s database, which is managed by a central entity (the bank) that oversees all transaction information and balances, Bitcoin’s database is secured by a decentralized group of participants globally.
To maintain the accuracy of all transactions and balances on the Bitcoin blockchain, these participants need to come to a mutual agreement (consensus) that everyone possesses the same information. This consensus mechanism used in Bitcoin is known as Proof of Work.
The individuals responsible for ensuring that all Bitcoin transactions and balances are accurate at all times are referred to as “miners.”
Miners reconcile the information on the Bitcoin blockchain by employing computational power. In practice, this involves a competitive process where participants race to solve a mathematical problem outlined in the Bitcoin protocol using their computers.
The first person to solve the mathematical problem is rewarded with bitcoins.
The collective computational power required to secure the Bitcoin network consumes a substantial amount of energy. While Bitcoin isn’t the only protocol that implements Proof of Work, it is undoubtedly the largest and most recognized.
How does Cardano’s Proof of Stake work?
Proof of Stake serves as an alternative method for achieving consensus in a blockchain. Unlike Proof of Work, Proof of Stake does not rely on solving mathematical problems through computational power.
Proof of Stake operates by having users commit their cryptocurrency, known as stakes, to validate the transactions occurring on the blockchain. In the case of Cardano, this involves locking the cryptocurrency ADA into a defined stake pool that aids in securing the Cardano blockchain. The consequence of attempting to manipulate the network with false information is the loss of the funds you’ve staked by locking away your ADA. This creates a system where manipulation does not yield benefits. Simultaneously, those who participate in securing the blockchain through staking receive payouts in ADA. Thus, you can earn interest income on your cryptocurrency by helping to maintain the network’s security.
A stake pool functions as a validator or node on the Cardano network, comprising a stake pool owner who manages the node and a group of participants who contribute ADA to the stake pool.
Summary:
Unlike Bitcoin, which relies on computational power and energy for its consensus mechanism known as Proof of Work, Cardano secures its network through Proof of Stake. This involves individuals locking their cryptocurrency ADA into staking pools, which effectively serve as nodes on the Cardano network.
Anyone has the opportunity to create a staking pool or delegate their ADA tokens to an already established staking pool. Staking pools are randomly chosen as slot leaders and are tasked with verifying the information on the Cardano blockchain. In return for verifying this information, the staking pools designated as slot leaders earn rewards in ADA. Thus, participants who stake receive passive income on their cryptocurrency.
Cardano (ADA) price prediction 2024:
In 2024, Cardano (ADA) is predicted to fluctuate, with prices ranging from a low of $0.303 to a high of $0.922. The average predicted price is $0.62, indicating a promising period for ADA investors.
Cardano price prediction 2025:
In 2025, Cardano (ADA) is expected to range from a low of $0.69 to a high of $2.22 with a stretched bullish target of $2.95. The predicted average price for 2025 is $1.46, suggesting potential for significant growth for ADA. Condition: the important 50% Fibonacci level of $0.824 is convincingly cleared in 2025.
Cardano (ADA) price prediction 2026:
In 2026, Cardano (ADA) could potentially rise to $3.123 if it breaks above the key resistance of $3.123. If this level isn’t surpassed, ADA may face considerable resistance at $1.63. On the downside, the price is expected to hold at $1.44 throughout the year
Cardano (ADA) price prediction 2030:
By 2030, Cardano (ADA) could potentially reach $3.33, assuming it successfully breaks past significant resistance levels in earlier years. This peak price projection reflects optimism about ADA’s long-term adoption and technological advancements within its platform, suggesting substantial growth prospects.
Cardano price history
2015: The foundation of Cardano
Cardano was founded in 2015 by Ethereum co-founder Charles Hoskinson, with the aim of creating a more balanced and sustainable ecosystem for cryptocurrencies. It was designed to be a more secure and scalable blockchain platform, incorporating peer-reviewed research into its open-source project.
2017: Official launch
Cardano officially launched in September 2017. It entered the market with its ADA token priced at about $0.02. The platform differentiated itself with a two-layer architecture, allowing for smart contracts and decentralized applications to run without interfering with day-to-day transactions.
2018: First use cases and growth
Throughout 2018, ADA’s price reached a peak of around $1.33 in January, driven by the general cryptocurrency bull market. The year focused on expanding its real-world applications and improving its technology stack, despite the broader market downturn later in the year.
2019: Shelley upgrade roadmap
In 2019, Cardano introduced the roadmap for its “Shelley” upgrade, aimed at making the blockchain 50 to 100 times more decentralized than other large blockchain networks. The price of ADA varied, touching a low around $0.03, reflecting the market’s initial slow response to developmental promises.
2020: Shelley launch and staking
Cardano launched the Shelley update in July 2020, which introduced staking capabilities. This update was pivotal in decentralizing the network, allowing holders to stake their ADA and participate in the network. By the end of 2020, ADA’s price had risen to around $0.19, signaling growing investor confidence in its technological advancements.
2021: Smart contracts and Alonzo upgrade
Cardano continued its development trajectory by launching the Alonzo upgrade in 2021, enabling smart contracts on its platform for the first time. This was a significant step towards competing with other established platforms like Ethereum. The price responded positively, peaking at over $3.10 in September 2021.
2022: Expansion and real-world integration
Despite the overall crypto market downturn in 2022, Cardano focused on expanding its use cases and enhancing platform scalability and interoperability. ADA’s price saw a decline in line with the broader market, settling around $0.35 by the end of the year.
2023: Building ecosystem and partnerships
In 2023, Cardano focused on building its ecosystem, forming strategic partnerships, and promoting adoption in practical sectors like education and finance. ADA’s price saw modest gains, reaching around $0.50 mid-year as the platform solidified its position in the market.
2024: Sustained growth and technological innovations
As of 2024, Cardano has continued to innovate, focusing on enhancing its blockchain’s sustainability and efficiency. The price of ADA has shown resilience and growth, hovering around $0.80, reflecting optimism in its ongoing and future projects.