Cardano Wallets and Its Application in Blockchain Technology
Cardano is a project that started in 2015. The blockchain grabbed a lot of attention around the beginning of 2018. Due to the sudden price increase from two cents in late 2017 to $1 and 30 cents in the former months of 2018.
Ada- The Cryptocurrency
As it always happens with cryptocurrencies, this did not last long. In 2020 the price dipped to 2 cents like it was before the sudden rise. Cardano is a blockchain that hosts multiple cryptocurrencies. It is a contract platform that has some similarities with ethereum. Ada is a cryptocurrency in Cardano, and it transfers value as quickly as possible and lets users get good contracts and applications. The cryptocurrencies that you use in transactions are present in Cardano Wallets. Forty-five billion is the maximum amount of Ada coins that are available in supply. Now the circulation is about thirty-one billion coins. The transaction and the new coins which enter the system undergo verification by a consensus algorithm. The algorithm is called Ouroboros proof-of-stake.
Block Leaders
Nodes that become block leaders form new blocks in the blockchain system and checks the transaction made through the platform. This function is just like the ones that miners perform in Bitcoin. Any stakeholder with the Ada coins can become the slot leader after earning the position and adding new blocks to the chain because the Cordano algorithm selects a slot leader when it chooses a coin that you have.
The algorithm selects a node to generate new blocks with probabilities proportional to the number of coins the node possesses. When the ADA stakes to a node, it becomes a stakeholder. When a node gets selected to form new blocks, it becomes a slot leader. If you have more Cardano with you, the chances of you becoming the slot leader and getting rewards increases.
Layers in Blockchain
Cardano blockchain is unique because of its architecture that features two layers. The first layer deals with the settlement act that runs transfers of Ada tokens. The second layer, which is called the computation layer, has information on the transactions that require daily. All the contracts are dealt with by these layers. Through them, you can see a clear separation of values on the account. You can also see the reason behind the movement of values. It allows transactions from accounts without getting information from smart contracts. The Cardano Wallet enables people to conduct contracts with more flexibility. Both the layers are independent of each other.
The users can create rules and parameters for the transactions conducted from accounts. Some ledgers only permit transactions if users provide suitable identification. The ultimate vision of Cardano is the creation of interlinked blockchains. By forming side chains, the transfers can easily happen without the indulgence of the middleman. The new protocol hopes to make this idea into reality with the help of the KMZ side chain.
Sum up
The chains can help track funds across the computation layers to any other blockchains that share the same protocol. When this is in place, uses can interact directly with the settlement layer without revealing the information they wish to keep private.
