Cardano (ADA) Coin: How It Works and Functions, Few People Know

Bittime - Cardano (ADA) is one cryptocurrency that continues to attract attention in the blockchain world. 

As a third-generation blockchain platform, Cardano offers innovative solutions to overcome the challenges faced by its predecessors such as Bitcoin and Ethereum. Check out how Cardano works and functions that maybe not many people know.

What is Cardano (ADA)?

Cardano is a blockchain platform launched in 2017 by Charles Hoskinson, co-founder of Ethereum. Its main cryptocurrency, ADA, is used for various purposes such as value transfer, running smart contract (smart contracts), to support decentralized applications (DApps).

In contrast to Bitcoin which uses a mechanism proof-of-work (PoW), Cardano adopted the protocol proof-of-stake (PoS) named Ouroboros. This protocol is designed to be more energy efficient while maintaining network security and efficiency. 

With an academic research-based approach, Cardano is one of the first blockchains to integrate scientific methods in its development.

How Does Cardano Work?

1. Settlement and Computational Layers

Cardano consists of two main layers: Settlement Layer and Computational Layer. The Settlement Layer functions as a ledger to record ADA transactions, while the Computational Layer supports smart contracts and other applications on top of the network.

2.Protokol Ouroboros

Ouroboros is a PoS-based consensus mechanism that allows ADA owners to “stake” their coins to the network. By staking ADA, users can help validate transactions and create new blocks on the blockchain. 

In return, they receive rewards in the form of additional ADA.

This protocol also allows formation stake pools, where ADA owners can join to increase their chances in the validation process. This system is not only energy efficient but also ensures the network remains secure even if some validators are offline.

Cardano Main Functions

1. Asset Transfer

Like other cryptocurrencies, ADA can be used to send and receive funds quickly and with minimal transaction fees. This makes it suitable for a variety of business and financial needs.

2. Smart Contracts and DApps

Cardano is designed as a platform for running smart contracts safely and efficiently. These smart contracts enable the automation of various processes without the need for a third party. Additionally, developers can build decentralized applications (DApps) on top of the Cardano network.

3. Voting and Governance

ADA owners have a say in the development of the Cardano ecosystem. Every important decision in the network can be influenced by coin holders through a blockchain-based voting system.

Read too Cardano (ADA) Price Potentially Rises to $1.9 Per Coin

Cardano's Advantages Compared to Other Blockchains

Cardano is often compared to Ethereum because they both support smart contracts and DApps. However, there are some key differences:

Energy Efficiency

The Ouroboros PoS protocol is much more energy efficient than the older Ethereum PoW mechanism.

Transaction Speed

With its dual layer design and advanced protocol, transactions on Cardano are faster.

Scientific Approach

Each phase of Cardano's development is based on expert-reviewed academic research.
Read too Converter 1 ADA to Rupiah 

Where Can I Buy Cardano?

Buying ADA is very easy as it is available on almost all popular crypto trading platforms and also on Bittime. You only need to create an account, deposit funds, then buy ADA as needed.

Read too How to Buy Cardano (ADA)

Conclusion

Cardano (ADA) is not just another cryptocurrency; it is an advanced blockchain platform designed to be more efficient, secure, and environmentally friendly than its predecessors such as Bitcoin or Ethereum. 

With the ability to support smart contracts, decentralized applications, and community-based governance, Cardano has great potential to continue to grow in the future.

If you are interested in starting to invest in or take advantage of this innovative blockchain technology, ADA could be an interesting option to consider!

Read too Cardano (ADA) Price Prediction 2024, 2025 - 2030

FAQs About Cardano (ADA)

1. What is Cardano (ADA)?

Cardano is a third generation blockchain platform that uses the protocol proof-of-stake (PoS) named Ouroboros. ADA is its primary cryptocurrency used for various purposes such as transferring value and executing smart contracts.

2. How is Cardano different from other blockchains?

Cardano is more energy efficient and flexible than Ethereum because it uses the PoS protocol. Additionally, Cardano was designed with a scientific approach which makes it more stable and secure.

3. Where to buy Cardano (ADA)?

You You can buy ADA on various popular crypto trading platforms. Simply create an account, deposit funds, then purchase ADA as needed.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference

Frank Gogol, What is Cardano Crypto?, Accessed March 4, 2025

Author: IN