Cardano

1. What is the Token?

• Cardano (ADA) is a decentralised proof-of-stake blockchain platform offering a secure, transparent, and sustainable ecosystem for transactions and governance.

• The platform’s native cryptocurrency, Ada, is named after the 19th-century mathematician Augusta Ada King, who was recognized as the first computer programmer.

2. Tokenomics

• 57.60% of ADA’s supply was allocated to ICO participants to fund development and engage supporters.

• 11.50% was reserved for the project team to encourage their continued involvement.

• 30.90% is dedicated to staking rewards, incentivizing network security participation.

• Cardano employs a deflationary model, reducing new token issuance over time to increase scarcity and value.

3. Market Data

As of today 18 December 2024, the price of Cardano is ₹92.90 INR, with a 24-hour trading volume of 1463273730.46 USD. The market capitalization for Cardano is 35796125069.8USD. The circulating supply is 35119317307.65 Cardano, with the total supply also being 44995089702.97 Cardano.

4. Token Pros and Cons

Pros:

• Cardano utilises an energy-efficient proof-of-stake consensus mechanism, offering a greener alternative to traditional proof-of-work systems.

• It prioritises security and sustainability, with its development underpinned by extensive peer-reviewed research.

• The platform supports smart contract functionality and the development of decentralised applications, broadening its use cases.

Cons:

• Cardano has faced criticism for slow development and the delayed implementation of features, affecting its progress.

• Its current network usage is lower than that of competitors like Ethereum, potentially impacting its network effect and overall adoption.

5. Why Should You Invest in the Coin?

• Cardano’s investment appeal lies in its academic rigour, sustainability focus, and growth potential with ongoing development and dApp creation.

• Investment decisions should consider personal risk tolerance and financial objectives.

6. USP of the Coin

• Cardano distinguishes itself through its foundation in peer-reviewed research and evidence-based methods, aiming for a secure, scalable, and energy-efficient blockchain.

7. Problem the Coin is Solving

• Cardano addresses earlier blockchain generations' scalability, interoperability, and sustainability challenges, fostering a balanced ecosystem for dApps and smart contracts.

8. Founder and Team Background

• Founded by Charles Hoskinson and Jeremy Wood, Cardano’s development is managed by three organisations: the Cardano Foundation, IOHK, and Emurgo, each overseeing different development aspects.

9. ICO Price

• ADA’s ICO price ranged from $0.0024 to $0.0028, varying across different sale stages.

10. Risks Associated in Investing in the Coin

• Investing in ADA involves risks like market volatility, regulatory shifts, technological challenges, and competition, necessitating comprehensive research before investment.

11. Whitepaper Insights

The Cardano whitepaper outlines the vision and technology behind the Cardano blockchain platform. It emphasises the need for a more secure, scalable, and sustainable blockchain to support modern-day applications' complex requirements. Cardano is designed to be a third-generation blockchain, improving the limitations of first-generation (Bitcoin) and second-generation (Ethereum) blockchains.

One of the core components of Cardano is its two-layer architecture: the Cardano Settlement Layer (CSL) and the Cardano Computation Layer (CCL). The CSL handles transactions involving ADA, Cardano’s native cryptocurrency, while the CCL is where smart contracts and dApps operate. This separation allows for greater flexibility and the ability to update the computation layer without affecting the settlement layer.

Cardano introduces Ouroboros, a novel proof-of-stake consensus algorithm central to the platform’s security and sustainability. Ouroboros overcomes the energy inefficiency of proof-of-work algorithms by allowing ADA holders to stake their tokens and participate in the network’s operation. This staking mechanism also serves as a way to incentivize honest participation in the network.

The whitepaper also discusses the importance of interoperability and the ability to interact with other blockchains. Cardano aims to create a platform where cross-chain transfers are seamless, enabling users to transact across different blockchains without the need for intermediaries.

Governance is another key aspect of Cardano. The platform seeks to establish a democratic governance model that allows ADA holders to vote on protocol upgrades and changes. This ensures that the network's development aligns with its community's interests.

Cardano’s emphasis on a research-driven approach is evident throughout the whitepaper. The platform’s development is grounded in academic research, with protocols and updates undergoing rigorous peer review before implementation. This scientific philosophy is intended to create a solid foundation for a blockchain that can adapt and evolve.

In summary, the Cardano whitepaper presents a comprehensive vision for a next-generation blockchain platform that addresses the shortcomings of previous blockchains. It focuses on creating a secure, scalable, and sustainable ecosystem that supports the development of complex applications while remaining adaptable to the changing landscape of blockchain technology and digital finance.