💬Today we are having a Q&A dialogue about the ADA (Cardano) currency
The first question: What is the main purpose of the ADA currency and the Cardano network?
The answer: The aim of ADA is to be the native currency of the Cardano network, which aims to be a scientifically grounded and sustainable smart contracts platform. The ultimate goal is to provide a secure and scalable infrastructure for running decentralized applications (DApps) and decentralized finance (DeFi) services on a global scale, with a focus on academic rigor in development.
Question two: What is the Cardano network? And what distinguishes it from Ethereum, for example?
Answer: Cardano is classified as a "smart contract platform," like Ethereum. Its main distinguishing feature is its research-based approach and rigorous academic review of every development or upgrade before it is applied to the network, aiming to ensure a high level of security and sustainability.
Question three: What is the consensus mechanism used by Cardano?
Answer: Cardano uses its own proof-of-stake (PoS) system called Ouroboros. This system is designed to be energy-efficient and more secure than proof-of-work (PoW) systems, allowing ADA holders to participate in staking to secure the network and earn rewards.
Question four: What are the key developmental phases that Cardano has gone through?
Answer: Cardano has a development roadmap consisting of five phases, each named after a historical or literary figure:
Byron: The basics and the launch of the network.
Shelley: Achieving full decentralization and a staking system.
Goguen: Integrating smart contracts and enabling decentralized applications (DApps).
Basho: Improving performance and scalability.
Voltaire: Integrating a decentralized governance and voting system.
Question five: What can users do on the Cardano network currently after the launch of smart contracts?
Answer: After the launch of the Goguen phase (smart contracts), users can build and run a wide range of decentralized applications (DApps), including decentralized finance (DeFi) platforms, non-fungible token (NFT) marketplaces, digital identity projects, and benefit from relatively low transaction fees.
