Cardano is a blockchain with it’s own cryptocurrency, ADA. Cardano was designed and developed by technology company IOHK, together with the University of Edingburgh, the University of Athens and the University of Connecticut.
The Cardano blockchain is written in the Haskell programming language and implements the Ouroboros protocol, a form of PoS (Proof of Stake). You can think of Cardano as a redevelopment of Bitcoin, with the idea of more freedom, which remedies the design errors of Bitcoin. Cardano wants to achieve this with the help of a scientific approach.
There is currently no way to buy ADA directly. So the only way to buy ADA is to purchase BTC to use on an exchange, and then switch it to ADA.
Step 1: Choose Your Trading Platform
Firstly you will need to decide on your cryptocurrency trading platform and create an account there. The choice of platform isn’t very important as a beginner, what really matters is a trading platform that you are comfortable using..
Choose one of these platforms and complete the follow steps to get started:
Go to Binance and create a new account if you do not already have one.
Once your account has been confirmed, log in to your Binance account and click on funds at the top right, then “Deposits Withdrawal”.
Look in the “Bitcoin” list and click the Bitcoin deposit button. Then a series of numbers appears in the “BTC Deposit Address:” field. You must copy this series for the next step. This is your bitcoin wallet address.
STEP 2: BUY BTC
The second step is to get your Bitcoin, you can do that at a broker such as BTCdirect .
If you’re buying BTC for the first time from these brokers, you will be asked to confirm your bank account.
Upon payment you will be asked to enter a bitcoin address. You must fill in the address that you have copied at Binance.
STEP 3: WAIT UNTIL YOUR BTC HAS ARRIVED
Once you have purchased Bitcoin and entered the correct BTC deposit address with the payment, you have to wait until the BTC arrives in your wallet.
This process can take up to ½ hour, so don’t worry if it’s not immediately visible on the exchange.
STEP 4: BUY ADA
Once your Bitcoin has arrived at your trading platform, it’s time to buy some ADA.
Go to the Binance trading exchange (click the top left on exchange and choose Basic) and use the search function within BTC Markets to find the ADA/BTC trade.
Once on the ADA/BTC trade page you can look in the left box marked with Buy ADA. Here you can decide how much ADA you want to buy using your Bitcoin.
If you then press Buy ADA your order will be placed. When the order is filled you will see your number of ADA on the right-hand box or on your balance page.
Congratulations you’re now the proud owner of ADA.
What is Cardano?
Cardano puts more emphasis on the use of scientific methods to build it’s Blockchain. All the aspects of Cardano are based on academic-peer-reviewed research. Even the choice of programming language in which the Blockchain is written has been well researched, Haskell is a programming language with a high error tolerance. This fits in very well with the idea of Blockchains, given that it is still groundbreaking technology and we do not know what the future will bring. A Blockchain that has a certain margin of error is therefore of great importance.
The team behind Cardano want to find a middle ground for the users and managers within their Blockchain.This is a completely different goal than all other Blockchains, this makes it quite unique. Cardano does not want to throw the entire financial system upside down, it wants to bring bank systems to places where it was previously impossible and / or too expensive to use such a system.
How does Cardano work?
Cardano has been developed in two independent layers.
- Cardano Settlement Low (CSL) – Keeps track of all account values.
- Cardano Computation Low (CCL) – Keeps all reasons for how the values have shifted from A to B.
CARDANO SETTLEMENT LOW
The CSL behaves like the bookkeeper of the Cardano network and is based on the work of Aggelos Kiayias and his Ouroboros Blockchain Protocol.
The CSL works on the basis of a PoS (Proof of Stake) consensus called Ouroboros to generate new blocks and confirm transactions. There was actually a specific main reason why Cardano decided to work on PoS and not a Proof of Work basis just like its predecessor Bitcoin. That is because the energy consumption of miners. A PoS is an effective and also ecological solution for finding the consensus.
In the Ouroboros protocol, slot leaders create new blocks within the blockchain, and these slot leaders also verify the transactions. You can view the slot readers if you would do that with minors in the Bitcoin network.
Anyone with ADA, the cryptocurrency within the Cardona network, can become a slot leader. Subsequently random slot readers are selected within the network, these are allowed to make the following blocks. This algorithm is called “follow the satoshi”.
To perform this function, the slot leader receives a “stake”, which is a reward from the network. This entire process is done entirely automatically if you keep your ADA in a wallet, and does not require manual action.
At the moment there are 26 billion ADA coins in circulation, with a maximum market cap of 45 billion.
CARDANO COMPUTATION LOW
The CCL layer is the second layer within the Cardona network and contains information about “why” transactions have happened.
The CCL layer is independent of the CSL layer, different users of the CCL layer can create their own rules to evaluate transactions. This gives you the opportunity to create your own ‘ledger’ that only watches certain transactions. An important feature as Blockchain regulations are becoming more defined per country.
The well-known functionality of “smart contracts” will also be added to the CCL. For this to be implemented the Cardona team is busy with their own programming language PLUTUS. Cardano is also going to offer a library for this, so that developers have everything to use PLUTUS within their dApps. They even go as far as their own IDE to help developers further with PLUTUS coding.
Daedalus is an open source wallet made by the Cordana team to serve as an ADA wallet. However, they don’t want to keep it that way.
In the future, Daedalus will become a multi-cryptocurrency wallet, where you can easily redeem your ADA for other coins that the wallet offers. Daedalus will first support Bitcoin and Ethereum. In addition, it will also become functional for both iOS and Android in the future.
1. INSTALLING THE WALLET
The first step is of course to download the Daedalus wallet. You can download it here . There is currently only support for Windows and MacOS.
After downloading, it takes time to complete all installation steps and wait for the wallet to be synced. Syncing can take quite a bit of time, so feel free to make a cup of tea (or 10) until the wallet has finished syncing with the blockchain.
2. FIND YOUR RECEIVE ADDRESS
After your Daedalus wallet is synced with the entire Blockchain and you have noted your backup phrase (keep it safe because you will need this if you ever want to restore your wallet). You will see a screen with on top “add wallet”.
We are going to create a new wallet by pressing “Create”.
Then you can press Receive on the tabs, here you will find a QR code with your receive address. We need this in the next step.
3. TRANSFER YOUR ADA
In this step, we will transfer your ADA to your Daedalus desktop wallet. We do this via Binance.
First you go to Binance. Then click on Funds> Deposits Withrawals.
Once on the Deposits & Withdrawals page, you can search for ADA – Cardano within the coins list.
Once you have found them, you press the right on Withrawal. You can enter a Cardano address here. Here we will use the address of our Daedalus wallet that you created in the previous step.
Your Cardano will now be transfered to your Daedalus wallet.