π Complete Guide to Cardano (ADA)
Hello! Are you curious about Cardano (ADA)? Today, I will tell you in detail about Cardano, which is called the third-generation blockchain. I will explain it in a friendly way so that even those who are new to virtual currency can easily understand it.
π‘ Introduction to Cardano (ADA)
Cardano is not just a simple cryptocurrency, but a next-generation blockchain platform. Cardano, which was introduced to the world in 2017, uses its own token called 'ADA', named after the 19th century mathematician Ada Lovelace.
π Cardano's Key Features:
Cardano is a platform that prioritizes security and scalability. In particular, it was developed based on an academic and scientific approach, and is the result of collaboration between research institutes and engineers around the world. This systematic development method clearly differentiates it from other blockchains.
Above all, Cardano values sustainability. We built an innovative system that can maintain high security without consuming a huge amount of electricity like Bitcoin.
π The interesting history of Cardano
Cardano's beginnings date back to 2015. Charles Hoskinson, who led the project, was one of the co-founders of Ethereum and was already a well-known figure in the blockchain industry.
After leaving Ethereum, Hoskinson set an ambitious goal to create a better blockchain. He thoroughly analyzed the limitations of existing blockchains and came up with a completely new approach to solve them.
π‘ Fun Fact:
Cardano has been in the spotlight since its mainnet launch in September 2017. In particular, it received explosive interest in the cryptocurrency market after the implementation of the 'Alonzo' update, a smart contract function in 2021. At this time, the price of ADA also reached an all-time high.
Cardano is still evolving through continuous updates and improvements, and by 2024, the governance system will be completed, transforming it into a truly decentralized platform.
⚙️ Cardano's innovative operating principles
The core of Cardano is its unique consensus algorithm called 'Ouroboros'. The name comes from Greek mythology, a snake biting its own tail, and signifies circulation and sustainability.
Energy Efficiency
It is environmentally friendly, operating on 99.95% less energy than Bitcoin.
Fast processing speed
It offers scalability that can handle thousands of transactions per second.
Strong Security
Minimizes hacking risk with mathematically proven security protocols.
Ouroboros adopts the Proof of Stake method, allowing ADA holders to directly participate in network operations. This is called 'staking', and by staking your ADA, you can contribute to network security and receive rewards at the same time.
π° The appeal of staking:
Cardano staking provides an annual yield of about 4-6%. It has the advantage of being able to earn much higher returns than bank deposits, while being able to withdraw freely at any time.
π Cardano's diverse applications
Cardano is not just a platform for cryptocurrency trading. It provides innovative solutions that can solve various real-life problems through smart contract functions.
π¦ Financial Service Innovation:
You can provide financial services such as loans, insurance, and investments without the traditional banking system. It is especially helpful in developing countries where banking services are difficult to access.
π¦ Supply Chain Management:
You can transparently track the entire process from the production of a product to delivery to the consumer, preventing counterfeit products and ensuring quality.
π Education:
It provides a system that prevents forgery of degrees or certificates and permanently and safely stores learning records.
π Real-world Case:
In Ethiopia, a project is underway to manage the academic records of 5 million students using the Cardano blockchain. This is a representative example of blockchain technology directly helping real life.
π± Cardano Exchange and Purchase Method
Cardano (ADA) can currently be easily traded on major cryptocurrency exchanges around the world. You can buy and sell ADA on various platforms both domestically and internationally.
π°π· Domestic Exchanges:
You can purchase directly in Korean Won on Upbit, Bithumb, Coinone, etc. In particular, Upbit has a lot of ADA trading volume, so liquidity is abundant.
π Overseas Exchanges:
It is also actively traded on global exchanges such as Binance, Coinbase, and Kraken.
⚠️ Things to consider when choosing an exchange:
Choose after comprehensively considering transaction fees, security levels, customer service quality, withdrawal limits, etc. In particular, it is safe to use an exchange that has no history of hacking and is licensed by financial authorities.
π₯ Active Cardano Community
One of Cardano's great strengths is its passionate community spread around the world. Developers, investors, and general users gather together to share various projects and ideas.
π¨️ Main Community Channels:
We exchange information in real time on Telegram, Discord, Reddit, Twitter, etc. In particular, you can get the latest updates and development news most quickly on the official Cardano Foundation channel.
π― Community Governance:
Cardano operates a voting system that allows community members to directly decide the future of the platform. Any ADA holder can participate in important decisions, realizing true decentralization.
π€ Korean Community:
There is also an active Cardano community in Korea. Information is shared in Korean on Naver Cafe, KakaoTalk open chat, Discord, etc., so even beginners can easily participate.
πΌ Cardano Wallet - The Key to Safe Storage
Choosing a reliable wallet is very important to safely store Cardano. Let's take a look at the wallets officially provided by the Cardano Foundation.
π₯️ Daedalus (λμΌλ‘μ€):
This is Cardano's representative desktop wallet. It provides the best security because it downloads the entire blockchain and operates as a full node. However, the downside is that the initial synchronization takes a long time.
π Yoroi (μλ‘μ΄):
This is a lightweight browser extension wallet that is very easy to install and use. Mobile apps are also available, so you can manage your ADA anytime, anywhere.
Hardware wallet integration
Provides the highest level of security by linking with hardware wallets such as Ledger and Trezor.
Mobile support
You can conveniently use it on the go via iOS and Android apps.
π Wallet Security Tips:
Never share your seed phrase (recovery phrase) with anyone else when creating your wallet. If this phrase is leaked, anyone can access your assets. We strongly recommend that you physically store it in a safe place.
⚠️ Things to know when investing in Cardano
If you are considering investing in Cardano, please be aware of the following. Cryptocurrency investing carries significant risks along with the potential for high returns.
π Understanding Market Volatility:
Cryptocurrency markets are much more volatile than traditional stock markets. ADA prices also fluctuate by 10-20% per day, so you need to be psychologically prepared for this.
π― Maintain a long-term investment perspective:
Cardano is likely to grow in the long term through technological advancements and expansion of practical use cases. Rather than being overjoyed or disappointed by short-term price fluctuations, pay attention to the project's technological advancements and ecosystem development.
π‘ Investment principles:
• Set your investment principal within a range that does not interfere with your life even if you lose it.
• Reduce risk by diversifying your investments into various assets.
• Make decisions based on objective analysis rather than emotional judgment.
• Check market trends and project news regularly
π Technical and Fundamental Analysis:
Along with the technical approach through chart analysis, it is important to comprehensively consider fundamental factors such as Cardano's technological development progress, partnerships, and ecosystem growth.
π In conclusion
We have learned a lot about Cardano (ADA). We hope that it will help you understand the innovative technology and infinite possibilities of Cardano as a third-generation blockchain!
Cardano is evolving beyond a simple investment target into a powerful tool that can solve various problems in our society. We hope you will continue to watch the growth of the Cardano ecosystem and make wise investment decisions!
If you have any further questions, you can get more information through the official Cardano channel or community. Let's create the future of blockchain together! π✨