Updated: Aug 18
Cardano is a decentralised computing platform founded by Charles Hoskinson, a co-founder of Ethereum.
Cardano's blockchain is comparable to Ethereum in that it enables smart contracts and decentralised applications (dapps), but Cardano intends to be a more sophisticated and scalable blockchain by utilising sidechains and scientific peer assessments of implemented technologies.
Note:- A sidechain is a secondary blockchain created for a specific purpose. Adding a sidechain minimises the number of transactions on the main blockchain, preventing congestion.
Cardano is designed in layers, with the cryptocurrency ADA operating on the Cardano Settlement Layer (CSL) and smart contracts and dapps running on the Cardano Computation Layer (CCL). Sidechains will be used to connect transactions between the many layers of Cardano.
This multi-layered design enables the blockchain to be readily updated via soft forks. A soft fork is a backwards-compatible update in blockchain technology, whereas a hard fork is non-backwards compatible since it generates a new, independent version of the blockchain that does not accept nodes that are running prior versions of the blockchain.
It should be noted that a node is a computer that has a copy of the blockchain loaded on it.
Cardano is the name of the blockchain, while ADA is the name of the cryptocurrency that uses it. Ada Lovelace, a 19th-century mathematician who is often regarded as the world's first computer programmer, inspired the moniker ADA.
2. Basic Attention Token (BAT)
The great thing about BAT is that it already has a working product with over 8.7 Million active users (Brave Browser).
BAT is a utility token which can be used by publishers, advertisers and users on the Brave browser which was also started by Brendan Eich.
Potential use cases for BAT include:
Receiving BAT for viewing an advert
Spending BAT on premium products or features
Donating BAT to your favourite publishers
Additional browsers implementing BAT as a way to compensate advertisers and publishers affected by AdBlock software.
So we don’t just have a token here, it was released alongside its own stand-alone internet browser, the Brave browser.
Brave is a web browser with a built-in ad-blocking system, the team behind Brave claims that the browser runs up to 7 times faster than regular browsers due to the removal of adverts which can slow down web page loading speed.
If advertisers want Brave users to watch their adverts, they will have to compensate users for their time by paying them in BAT, so essentially users will get paid to watch adverts.
Think of smartphone apps that reward you with in-game currency for watching adverts, this is similar except you will be receiving cryptocurrency with real-world value instead.
BAT has a great founder plus a working and already released product, a no-brainer in my opinion.
3. Ripple (XRP)
Ripple is a payment remittance protocol developed by Ripple Labs. The aim of Ripple is to allow banks to transfer large amounts of money across the world in seconds whilst saving a lot of money.
Ripple accomplishes this through its cryptocurrency XRP which has a transaction time of about 3 seconds on average with transactions costing only a fraction of a cent.
Its speed and low transaction costs make it similar to Stellar Lumens, however Stellar also functions as a development platform whilst Ripple is a payment protocol that mainly targets banks all across the world.
Currently, Ripple is partnered with other 100 banks which include JP Morgan, Santander, American Express and The Bank of England.
Although banks are the main target customer for Ripple, everyday users can use XRP to transfer large amounts of money across the globe. For example, you could send $10,000 to a relative in another country for less than a cent and it would only take seconds to reach them.
No large bank transfer fees and no 3-day waiting times.
4. Stellar Lumens (XLM)
Stellar Lumens (XLM) is a decentralized development platform and cryptocurrency which was started by Ripple co-founder Jed McCaleb.
Alongside Ripple, Stellar has much lower transaction fees than most cryptocurrencies, with transactions costing less than 1 cent. Transaction speeds also take 2–4 seconds on average.
Low transaction costs and fast speeds are not the only benefits of Stellar Lumens, Stellar can also be used as a platform to run ICOs, smart contracts, dapps and to create cryptocurrencies which will run on the Stellar blockchain.
This is similar to Ethereum and its Ethereum-based tokens created through ICOs, the difference is that Stellar-based tokens will be a lot faster and cheaper since they will share the transaction costs and speed of the Stellar Lumens currency.
Recently Mobius raised over $39 Million whilst using the Stellar Lumens (XLM) blockchain to run its ICO.
How you can invest in these cryptocurrencies
A few cryptocurrencies are available on cash-based exchanges whilst the majority are only available on cryptocurrency-only exchanges, for example, Cardano (ADA), Basic Attention Token (BAT) and Stellar Lumens (XLM) and Ripple (XRP) can all be bought directly with cash from BitPanda.
You can also use CEX to invest in Cardano (ADA) and Stellar Lumens (XLM) and Ripple (XRP) directly, however, they don’t have a Basic Attention Token available.
This easy access helps to increase adoption, which in turn increases demand, causing the value of cryptocurrencies to rise.
If these projects continue to reach their roadmap goals and continue to secure strategic partnerships, I can see them being really big in the near future.
Not many projects have such a solid background.
Thanks for reading till here !!!