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Cardano Explained | A beginner’s guide

Cardano is a proof-of-stake blockchain platform that was founded by Ethereum co-founder Charles Hoskinson. The network is founded upon peer-reviewed research and evidence-based methods, and it considers itself an updated version of the Ethereum network. Compared with Ethereum, transactions on the Cardano network are fast and cheap. The network now hosts more than 2,000 Dapps, including NFT marketplaces, DeFi platforms, gaming platforms and more. 

Some of the biggest Dapps on Cardano are:

The Cardano roadmap will be executed in five stages, each named after poets and computer science pioneers. We are currently in the ‘Basho’ era of Cardano – the era of scaling, optimisation and interoperability. 

Sidechains will be a defining feature of the Basho era. 

Cardano’s goals go far beyond cryptocurrency and play-to-earn games.

Its enterprise goals include:
  • Banking the worlds unbanked
  • Improving the integrity of healthcare and pharmaceuticals by verifying the origin and supply chain of medicines sold online.
  • Enhancing government security through robust digital identification. 
  • Using blockchain to support stakeholders in the agricultural supply chain from “farm to table”.
  • Creating a tamper-proof system to prevent the sale of counterfeit goods.
  • Education credential verification.
What is ADA?

Ada is the cryptocurrency of the Cardano network. It’s a store of value that can be used to engage in peer-peer transactions across the world, and it’s one of the top 10 cryptocurrencies by market cap. Ada is used to pay transaction fees, and it can also be delegated to a staking pool to earn rewards in the form of ada. In time, ada will be used in a much wider range of applications and services on the Cardano platform. 

Ada traded for less than $1 for several years, hitting a peak price of $3.09 in September 2021. The price of ada has floated between 2 cents and $1.213 USD over the past year.

Good to know

Cardano’s digital currency, Ada, is named after Augusta Ada Lovelace, a 19th-century mathematician widely recognised as the first computer programmer. She was also the daughter of infamous poet Lord Byron.

Advantages of Cardano
  • Cardano is based on peer-reviewed research and evidence-based methods. 
  • It’s an energy-efficient network, roughly 1.6 million times more energy efficient than bitcoin. 
  • The platform has ambitious plans to deliver the mainstream adoption of blockchain technology in everyday life, outlined in its enterprise goals.
Disadvantages of Cardano
  • Some of Cardano’s competitors are catching up. Ethereum for instance has now switched to a proof-of-stake consensus mechanism, reducing its energy consumption by more than 99%. 
  • Upgrades within the network can be slow.

Where can I buy ADA?

ADA is a CoinMarketCap top 10 cryptocurrency by market cap and is available to purchase on most major exchanges including Binance, Coinbase Pro, Kucoin, OKX, Kraken, Bybit and more. It’s also available on decentralised exchanges such as Uniswap. You can read a full list of exchanges that list ADA here.

To buy ADA, you will need to create an account on one of the listed exchanges. You will then need to verify your identity and deposit your local currency into your account to purchase the token. You will also need a wallet that supports ADA, such as Yoroi, Exodus, Daedalus, Eternl, Binance, Coinbase or 

If you purchase ADA through an exchange such as Binance, the token will be automatically stored in your Binance wallet. If you purchase a large sum, it’s best to transfer your funds to a non-custodial wallet such as Yoroi, or a cold wallet such as Ledger. 

Our top 3 ADA wallets are: 

  • Daedalus (non-custodial, most compatible) 
  • Ledger Nano X (non-custodial, cold wallet) 
  • Yoroi (non-custodial, beginner-friendly)

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