Buy Cardano

Cardano is a blockchain and cryptocurrency that has been designed to be a more efficient, scalable, and sustainable alternative to other blockchains, such as Ethereum. Launched in 2017, Cardano is notable for its scientific approach and peer-reviewed research. This blockchain supports smart contracts, allowing developers to build decentralized applications (dApps) and crypto tokens on Cardano.

Cardano is considered one of the most environmentally-friendly blockchains. According to founder Charles Hoskinson, Cardano is 1.6 million times more energy efficient than Bitcoin. The Cardano blockchain is also faster at processing transactions compared to blockchains such as Bitcoin and Ethereum.

ADA is the cryptocurrency of the Cardano network and can be used for digital transactions, payment of transaction fees, as an investment or for staking. In the short history of Cardano, ADA has already reached the top 3 largest cryptocurrencies by market capitalization several times.

Who are the founders of Cardano?

Charles Hoskinson is the founder of Cardano and was also one of the founders of Ethereum. Hoskinson has been active in the crypto space since 2011, when he started crypto trading and mining. He took his first professional steps in this space in 2013, when he designed a Bitcoin course that was completed by more than 80,000 students. Hoskinson is currently the CEO of IOHK (Input Output Hong Kong), the company behind Cardano, which has over 400 employees worldwide.

Cardano offers a variety of uses beyond that of a cryptocurrency. From financial transactions to creating dApps, here are some of the main ways Cardano can be used:

• Executing transactions: Cardano can be used to execute fast and affordable transactions.
• Develop smart contracts and dApps: It supports the development of smart contracts, making it ideal for creating dApps.
• Staking: Users can earn ADA by participating in staking on the Cardano network. You can also stake Cardano at Bitvavo. Find out how, here.
• Develop and trade NFTs: Developers can create non-fungible tokens (NFTs) on the Cardano blockchain which anyone can trade.
• Investment and Crypto Trading: The ADA price fluctuates, making Cardano a popular investment choice in the cryptocurrency market.

Cardano is known for its two-layer structure. The Cardano blockchain consists of the Cardano Settlement Layer (CSL) and the Cardano Computing Layer (CCL). The CSL is the layer where transactions are validated and user balances are stored. This is where 'simple' tasks are performed. The CCL is where more complex tasks are performed, such as calculations for dApps and the execution of smart contracts.

Ouroboros Proof-of-Stake (PoS)

The Cardano blockchain uses the Ouroboros Proof-of-Stake (PoS) consensus mechanism. This mechanism is more energy-efficient than Proof-of-Work, which is used by Bitcoin and others.

Ouroboros differs from other Proof-of-Stake mechanisms in that it divides time into epochs and slots. Slot leaders are responsible for adding blocks to the blockchain and are elected based on the number of ADA tokens they hold and stake. This makes Cardano's consensus mechanism not only more sustainable, but also more fair and democratic than Proof-of-Work, where miners compete against each other based on computing power.

Plutus and Haskell

Cardano uses the Plutus programming language to develop smart contracts. Plutus is based on the Haskell programming language and is specifically designed to make developing dApps easier, more secure, and more efficient. Plutus is often compared to Solidity, but it is designed to solve Solidity's problems and vulnerabilities.

Scalable and compatible

The Cardano blockchain is designed to be as scalable and compatible as possible, ensuring transactions are always fast and cheap, and that the blockchain can work seamlessly with other blockchains. The scalability of the network is continually improved through upgrades such as Hydra, a layer 2 scaling protocol that increases the transaction speed and capacity of the network.

Alonzo upgrade and Vasil hard fork

Cardano has undergone multiple upgrades to improve its functionality and efficiency. The Alonzo upgrade is one of the most notable, as it introduced smart contracts on the blockchain. This gave developers the ability to build decentralized applications (dApps) on Cardano.

Another major upgrade is the Vasil hard fork, which was aimed at improving the network scalability and performance.

At Bitvavo, you can stake Cardano and earn rewards. To stake Cardano at Bitvavo, follow these steps:

1. Log in to your Bitvavo account or create a new account.
2. Purchase Cardano (ADA) on Bitvavo.
3. Go to the 'Staking' section on Bitvavo. Here, you can activate staking for Cardano (ADA). This gives Bitvavo permission to use your ADA for staking.
4. Once you activate staking, you will automatically start earning rewards. The rewards will be added to your account periodically.

Cardano stands out from other blockchains thanks to its scientific approach. Here are the key features that make Cardano unique:

• Scientific approach: Cardano differs from other blockchains because of its strong emphasis on scientific research and peer-reviewed development. This means that multiple scientists are involved in every stage of development.
• Sustainability: The blockchain has been designed with sustainability in mind, which is essential in today's climate-conscious era.
• Ouroboros Proof-of-Stake: Cardano uses the self-designed Ouroboros Proof-of-Stake consensus mechanism. This mechanism is more energy-efficient than the PoW system used by many other cryptocurrencies.
• Scalable and compatible: Cardano's blockchain is designed to be scalable and compatible, which is important for the adoption of blockchain technology.

What is the difference between Cardano and Ethereum?

Cardano and Ethereum are both blockchains that support the development of smart contracts, but they have some major differences. First, in terms of consensus mechanism, Ethereum uses the standard Proof-of-Stake protocol, while Cardano uses a home-grown variant. Ouroboros is optimized for more efficient transaction processing. Cardano can process up to one million transactions per second, while Ethereum processes 30 transactions per second.

Another key difference is the programming language used for smart contracts. Cardano uses Plutus, which is based on Haskell, while Ethereum uses the Solidity programming language. In addition, both blockchains also differ in their approach. Cardano is known for its scientific approach, while Ethereum has a more practical and rapid approach to development.

At Bitvavo, you can purchase Cardano (ADA). Both beginners and advanced traders can use our Dutch exchange. Purchase Cardano by following these four steps:

1. Log in to your Bitvavo account or create an account.
2. Deposit money into your account by clicking "Deposit".
3. Visit the Cardano buy page.
4. Enter the desired amount in euros or how much Cardano (ADA) you wish to buy and click "Buy".

After executing the transaction, you will find the Cardano coins in your Bitvavo account. From here, you can also easily sell Cardano, letting you react to the latest market movements.

After purchasing Cardano, your ADA tokens will be stored directly in your Bitvavo account. Bitvavo stores the majority of its customers' digital currencies in 'cold storage' that is managed offline, so you don't have to worry about the security of your Cardano. We also recommend activating two-factor authentication (2FA) to further secure your account.

Cardano has designed two of its own wallets: the Daedalus wallet and the Yoroi wallet. You can also store Cardano in a hardware wallet. Almost all hardware wallets support the storage of Cardano. To send ADA from Bitvavo to an external wallet, you must first verify the wallet address in your Bitvavo account.