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ADA Cardano FAQ
What is ADA, and why is it gaining traction in the crypto world?
ADA is the native cryptocurrency of the Cardano blockchain. It's gaining traction in the crypto world because of its focus on sustainability, scalability, and the implementation of smart contracts.
How does Cardano's consensus mechanism differ from other blockchains?
Cardano uses the Ouroboros Proof-of-Stake protocol, which is energy-efficient and secures the network through staking.
Can ADA be staked for rewards?
It sure can! ADA holders may stake their coins to help validate transactions and earn rewards in return.
What's the significance of Cardano's layered architecture?
Cardano's multi-layered design separates the settlement and computation layers. This leads to improved security and scalability.
Is ADA's smart contract functionality live?
Yes, Cardano's Alonzo upgrade brought smart contract capabilities to the network, opening the door to decentralized applications (DApps).
How does ADA impact the DeFi sector?
The scalability and sustainability features brought to DeFi by ADA are actually posing a challenge to Ethereum.
What's Cardano's approach to sustainability?
Cardano supports sustainability with its treasury system, which is funded by a portion of transaction fees.
Can ADA compete with Ethereum's dominance in DApps?
It can! Especially taking into account Cardano's low fees, fast transactions, and sustainability. All these attract many DApp developers.
How secure is Cardano against attacks?
Nothing is 100% secure in the crypto world. But Cardano's Proof-of-Stake mechanism improves its security by involving stakeholders in the network's governance and operation.