Donald Trump to cancel taxes on 6 cryptos (ADA)

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Cardano or ADA is a blockchain platform that prioritizes scalability, sustainability, and interoperability, aiming to deliver a secure and decentralized ecosystem for the development of decentralized applications (dApps) and smart contracts. Its native cryptocurrency, ADA, is named after Ada Lovelace, the 19th-century mathematician known as the first computer programmer.

Key Details

  • Launch Date: September 29, 2017
  • Founder: Charles Hoskinson (co-founder of Ethereum and CEO of IOHK)
  • Token Symbol: ADA
  • Purpose: To create a highly scalable and sustainable platform for building dApps, smart contracts, and decentralized financial services.

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Advantages

  1. Peer-reviewed and scientifically driven development.
  2. Energy-efficient and sustainable through PoS.
  3. Highly scalable and interoperable.
  4. Strong focus on governance and decentralization.

Challenges

  1. Slow Development: Cardano’s rigorous development process leads to slower updates compared to competitors like Ethereum and Solana.
  2. Adoption: While growing, Cardano’s ecosystem is still catching up with Ethereum in terms of dApps and developer activity.
  3. Competition: Faces strong competition from other Layer-1 blockchains like Ethereum, Solana, and Avalanche.

What Makes Cardano Unique?

Cardano differentiates itself by employing a scientific approach to blockchain development, incorporating peer-reviewed academic research and formal methods to ensure a robust and secure platform.

Key Features

  1. Ouroboros Proof-of-Stake (PoS) Consensus:
    • Cardano uses the Ouroboros consensus algorithm, which is energy-efficient and secure.
    • Validators, called “stake pools,” are selected based on the amount of ADA staked.
  2. Layered Architecture:
    • Settlement Layer (CSL): Handles ADA transactions.
    • Computation Layer (CCL): Enables smart contract execution, offering flexibility for developers.
  3. Scalability:
    • Cardano aims to achieve high throughput and scalability using technologies like Hydra, which is a Layer 2 scaling solution.
  4. Sustainability:
    • The blockchain includes a treasury system, where a portion of transaction fees is set aside for future development.
  5. Interoperability:
    • Cardano is designed to work with other blockchains and legacy financial systems.
  6. Eco-Friendly:
    • Its PoS mechanism uses significantly less energy compared to Proof-of-Work blockchains like Bitcoin.

Use Cases

  1. Decentralized Finance (DeFi):
    • Cardano supports lending, borrowing, and yield farming protocols.
  2. Smart Contracts:
    • Developers can build dApps on Cardano using Plutus, its native smart contract platform.
  3. Supply Chain Management:
    • Cardano is used for tracking supply chains and verifying product authenticity.
  4. Identity Verification:
    • Projects like Atala PRISM leverage Cardano to provide decentralized identity solutions.
  5. Government and Enterprise:
    • Collaborations with governments (e.g., Ethiopia for student record tracking) showcase its real-world utility.

Tokenomics

  • Maximum Supply: 45 billion ADA
  • Circulating Supply: Approximately 35 billion ADA (as of January 2025).
  • ADA Distribution:
    • Staking rewards.
    • Treasury funding for network development.
    • Public and private token sales.

Staking ADA

Cardano is a fully proof-of-stake blockchain, and users can stake ADA to earn rewards:

  • Delegated Staking: ADA holders delegate their tokens to a stake pool.
  • Annual Yield: Typically around 4-6%, depending on the network’s performance.

Development Phases

Cardano’s development is structured into five phases, each named after famous historical figures:

  1. Byron (Foundation): Focused on establishing Cardano’s foundational architecture.
  2. Shelley (Decentralization): Transitioned to a fully decentralized network.
  3. Goguen (Smart Contracts): Introduced smart contract functionality.
  4. Basho (Scalability): Focuses on scaling and performance improvements (ongoing).
  5. Voltaire (Governance): Will introduce decentralized governance and a treasury system.

Partnerships and Adoption

  • Ethiopia: Implementing a blockchain-based identity system for 5 million students.
  • World Mobile: Building decentralized internet services in Africa.
  • Chainlink Partnership: For real-world data integration into smart contracts.

Where to Buy ADA

ADA can be purchased on major cryptocurrency exchanges, including:

  • Binance
  • Coinbase
  • Kraken
  • KuCoin
  • Bitfinex

Wallets for ADA

  1. Daedalus Wallet: Cardano’s official desktop wallet.
  2. Yoroi Wallet: A lightweight browser-based wallet.
  3. Hardware Wallets: Ledger, Trezor.

Recent Developments

  1. Hydra Scaling Solution: Testing for improved transaction throughput.
  2. Stablecoin Launch: Introduction of DJED, a decentralized algorithmic stablecoin.
  3. Increased DeFi Activity: Growing Total Value Locked (TVL) in Cardano-based DeFi projects.

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