It is a platform that uses blockchain technology, just like Ethereum, but they have implemented improvements that made it a “third generation cryptocurrency”, as it called itself.
This means that it was created with the idea of functioning as the blockchain internet network, overcoming the operational and accessibility problems that can arise in cryptocurrency systems.
Currency
Its coin, ADA , was named after the mathematician Ada Lovelace and has been characterized by maintaining a stable price range.
Grid
It was named after the mathematician Girolamo Cardano. At Cardano, programmers work together with academics to develop secure and efficient blockchains.
Cardano is separated into two layers:
- The one that keeps the record of payments.
- The one that is in charge of the development of applications.
This solves a problem of traditional cryptocurrency networks, since it is possible to make improvements to the network without the danger of altering the information records.
Process
Unlike the operational development of other cryptocurrency networks, Cardano does not have mining or proof of work, which reduces energy consumption and technological pollution generated by heavy computing equipment.
Classic cryptocurrency platforms do not usually complete transactions immediately, and this pace limits the use of the virtual economy. For example, in BTC price crashes, your network often becomes congested because there are many people wanting to trade at the same time.
To improve situations like this, Cardano implements a “proof of stake” called “Ouroboro”, which consists of choosing, through mathematical probability, users that make up small groups to supervise the programming of the applications and the movement of ADA. The result is greater speed when completing operations.
This platform has projected five phases of development . Currently, it is in the third, whose central objective was the development of its own cryptocurrency “ADA”.
Page 12: Types of cryptocurrencies
Types of cryptocurrencies
Towards the 80’s, the internet was a fresh invention that inspired projects that seemed taken from science fiction, among these, the principles of what today are “cryptocurrencies “.
The first model consisted of anonymous signatures to buy with money from the bank. The idea arose in 1983 and received the name of “eCash” .
This encouraged other companies such as DigiCash, in 1990, and E-Gold, in 1996, which sold portions of its gold reserves online. Then Hashcash, Bitgold (1997) and B-money (1998) appeared.
There was a space of ten years in which the advances in computing were fixed, above all, in the physical side of the equipment.
After this, new monetary projects and technologies arose:
- 2008: Bitcoin programming goes public to change everything.
- 2009: Bitcoin seemed more like an experiment than a “serious” currency. However, the number of users who began to trust the network motivated the creation of more cryptocurrencies.
- 2011: Litecoin was created.
- 2012: Creation of Ripple.
- 2013: Dogecoin came out.
- 2014 – Dash, Tether, Monero and Stellar projects launched.
Tether and Ripple are a class of cryptocurrencies called “stable,” which are secured by bank money. If you want to learn more about this topic, visit our page: ” How do stablecoins work ? “.
- 2015: Ethereum appears , a network designed to be more than just a means of payment. Virtual applications are also developed there.
By this time, the picture of cryptocurrencies and the future of money was quite negative, given the huge drop in Bitcoin prices.
- 2017: Projects like Cardano , Neo, Tron, Iota, Binance, and Polkadot, came to light.
- 2018: Binance and Coinbase developed their own coins
The ABC’s of cryptocurrencies
Know the meaning of the most important and most used terms in the world of cryptocurrencies.
- Asset : resource for profit or future benefits.
- Altercoin – Any cryptocurrency other than Bitcoin .
- Leverage : borrowing money.
- Whale (“whale”) : investor who owns too many cryptocurrencies, so many, that their movements can affect the state of the market.
- Blockchain : chain of information and accounting records of cryptocurrencies.
- Broker : virtual platform for investment in cryptocurrencies.
- Code : computer network programming.
- DAO : decentralized autonomous organization.
- Dapp – decentralized application.
- Decentralization : economy that does not depend on traditional banking and works from different places around the world.
- Ecosystem : in the virtual economy it is the set of cryptocurrencies that make it up.
- Exchange : virtual platform for buying, selling and exchanging cryptocurrencies.
- Trustee – Money held by the bank or backed by gold.
- Fork : copy of the programming code.
When it occurs due to theft, it is called a “hard fork” , and when it occurs due to updating or improvements, it is called a “soft fork” .
- Hash – Encryption that converts data to a fixed length of characters. Secures the blocks of the Bitcoin blockchain.
- Holding : investment method in which an asset is acquired to be sold once its price doubles or triples.
- ICO – beginner cryptocurrencies, which are in the process of raising funds.
- Mining : work that consists of keeping the record of the blockchain.
- Miner : person or electronic equipment that deals with the record of the blockchain, with the intention of obtaining reward.
- Node : one of the many teams that deals with the registration of a blockchain around the world.
- Portable : it is the quality of being manageable, easy to move from one place to another.