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What is Cardano?
As an initial information, it should be noted that Cardano is totally different from ADA and that they should not be confused with each other.
It is understood that ADA is the cryptocurrency, and on the other hand Cardano is the platform that hosts the cryptocurrencies; we can say that Cardano is the ADA blockchain.
Cardano was created by a company called Input Output Hong Kong. Development of the platform started in 2015, but it was released to the general public in 2017.
One of the leaders of the Cardano project is Charles Hoskinson. His name is known in the world of cryptocurrencies for being a co-founder of Ethereum and also a company called BitShare.
Charles has become quite popular and respected in the crypto world due to his involvement in the aforementioned projects, all of which seemed to be very successful.
Cardano is similar to many other cryptocurrencies in being decentralized which means that this coin does not have a single owner, and anyone can support the coin. In terms of its structure, it is more similar to that of Ethereum.
As most cryptocurrencies have their special traits, Cardano wants to revolutionize the world of cryptocurrencies. And one of the ways you plan to do it through your proof of stake system.
What is ICO
The Cardano ICO (Initial Coin Offering) this was the money that was used to found in its beginnings they raised a total of 60 million which in the end left the price of the cryptocurrency at 0.02
One of its biggest reasons for exploding in popularity was one of its co-founders Charles Hoskins that people see him as a great mathematician whose goals are aimed at revolutionizing the way blockchain technology.
Another of these reasons are the promises that Cardano promises to fulfill, which is to revolutionize the way in which transactions are handled. That this would balance security, speed, and still be completely decentralized.
What is PoS
Cryptocurrencies normally use one of the two systems – Proof of Stake and Proof of Work. In the field of cryptocurrency mining.
The way a PoW system works is that if a mining system solves difficult math problems, when the block is mined this system distributes the rewards after this math problem is solved.
But when we talk about PoS the process is different, the wallet generates new blocks and verifies transactions. Anyone who owns an ADA in the Cardano portfolio will participate in this process
This PoS system is considered beneficial as it does not require large amounts of power or powerful machines to solve the problems used in the PoW system.
Most (if not all) of the cryptos that are currently in the market struggle with balancing security, decentralization, and speed. With the current technology, it seems almost impossible to have all three of the above-mentioned factors working equally well.
How to mine Cardano
As we already know what Cardano is, we can start to analyze how to mine Cardano. What we should really ask ourselves can Cardano be mined?
The answer to this would be no, Cardano cannot be mined. Cardano mining is impossible because it is not part of the Proof of Work However, Cardano can be staked.
How to mine Cardano ADA
To start mining for Cardano ADA you have to have your wallet which is provided by Cardano.
What does this mean? Well, you simply keep your Cardano wallet (the main one to use is called Daedalus) online, and in turn receive a certain percentage of your already owned ADA coins as payment. This method is used by the “Proof of Stake” system, which confirms transactions via already existing ADA coins, rather than by using hardware (that would be the case with mining Cardano).
When talking about mining there are reasons why this is very useful.
Since there is no type of mining either cloud mining, GPU or CPU mining this generates savings in mining hardware and also in electricity spent, all this can be invested in the ADA currency.
Cardano mining is totally easy as all you need to do is keep your main wallet online and that’s all you have to do; the income distribution will be automatic. The more Cardano coins you own and stake, the more you will receive.
The developers also promise that during the “Reward Era” they shall release constant updates and features regarding Cardano.
During this time, stake pools (same thing as a mining pool, only with the “Proof of Stake” system in place) will emerge and people that hold little amounts of Cardano but participate in the transaction processes will be able to receive greater rewards.
All in all, the “Proof of Stake” system seems to be stake pools. The coin’s development team is professional and experienced in their respective fields, so this cryptocurrency has a great backing and can continue to grow and advance, both in price AND in technological terms, without having an actual Cardano mining option.