All About Cardano (ADA) Explained For Beginners 2022

Cardano is a 3rd generation Blockchain and the ADA is their native cryptocurrency that feeds Blockchain level transactions!

Just as Bitcoin is the cryptocurrency on the Blockchain of the same name, in the case of the Cardano Blockchain, the cryptocurrency is ADA!

I said that the Cardano project is a 3rd generation Blockchain and in order to explain why a 3rd generation is needed I have to explain which are the first generations and obviously their problems!

First generation explained: Bitcoin is a first generation Blockchain and does not have many features. The only capability of the Bitcoin Blockchain is to store value and transfer coins between two entities, everything being done digitally and decentralized!

Second Generation: The first second generation Blockchain was Ethereum which differentiated itself from Bitcoin through smart digital contracts, they give you the ability to attach a story to a transfer. Virtually every money transfer has a history and a contractual clause behind it (you receive the money if you have fulfilled the condition set by the one who gives you the money).

Cardano aims to solve the problems of the two generations of Blockchain. I said that the Cardano Blockchain is a 3rd generation Blockchain that solves the problems of the first generations. These problems are scalability, interoperability and sustainability!

Scalability refers to the number of transactions per second that a Blockchain can make. Cardano aims to solve this problem so that people can make more transactions whenever they want and in 100% security!

In the case of interoperability, the problem is a little harder to describe, but at the moment we have the Bitcoin and Ethereum Blockchain and these two Blockchains have different rules, protocols and have no way for them to interact with each other without the need for a intermediate. Cardano solves this with the same technology mentioned above, namely by offering the possibility to attach more Blockchani to the main Blockchan!

The third problem that Cardano solves is sustainability and the democratic vote. it is obvious if we want a Blockchain of the future we have to think of the engineers of the future who will want to add functionality or improve the protocol in a certain way. To solve this problem Cardano will adopt a kind of decentralized treasury. Each transaction in the current Blockchain has a small fee associated with it and some of these fees will automatically go to a common account called the treasury. And when someone wants to add new functionality or improve their protocols in a way, all ADA cryptocurrency holders will have the option to vote democratically for or import this change!

ADA is the native Cardano token that was launched from 2015 to 2017 in the form of an initial coin offering at an average price of $ 0.0025. This ICO was basically an initial distribution of the ADA cryptocurrency to Japanese investors and a total of 26 million ADAs were sold for $ 62,240,000. This money is used to develop the protocol.

We currently have 31 billion tokens in circulation out of a total of 45, with a market capitalization of $ 40-44 billion.

When it comes to the potential price of the ADA cryptocurrency, we realize that its potential is limited by Bitcoin and probably Ethereum but the fact is that the ADA is constantly in the top 5 cryptocurrencies.

Research is the most important thing because it helps you not to lose money and to better understand what projects you are getting into!

Remember, I’m not a financial analyst, I don’t give financial advice and if you went after me without doing your own research you deserve to lose all your money ! ! !

Invest only what you are prepared to lose!