Over the last few years, the entire cryptocurrency and blockchain ecosystem has blossomed and experienced a tremendous level of creativity unseen since the early dot com days. A steady stream of over 12,000 cryptographic related papers has flowed forth from academia since 1996 with many in recent years. Overall, the interest from the mainstream has steadily grown to reflect the increased interest in the blockchain space and Cardano - the first third-generation blockchain to evolve from a scientific philosophy. One of the curiosities regard the nature of Cardano’s native ADA digital currency or digital asset and how it compares to the traditional banking & currency system. With the current Cardano Incentivized Testnet in progress, development is marching on towards a mature Cardano blockchain ecosystem.
What kind of currency is Cardano ADA?
Cardano ADA is a deflationary digital currency as it has a fixed supply. Cardano ADA is provably secure, smart money that is native to the Cardano blockchain protocol and plays an important role in securing the overall blockchain network in a decentralized way. The expert developers behind Cardano approach ADA in a scientific manner, because the Cardano blockchain protocol itself has evolved out of a research-first approach.
These days, some investors are looking for capital growth beyond traditional assets and Bitcoin. They are looking for digital currency-related benefits such as staking yields, the ability to create their own tokens (i.e., user issued assets), and more. Cardano ADA is a digital currency that promises the ability to meet these demands as it will be able to scale worldwide and interoperate with other blockchains & legacy systems via Ni-Po-Pow. Part of the Cardano ecosystem will involve a Treasury to uphold blockchain sustainability as well.
The Cardano Treasury differs from the traditional U.S. Banking Treasury and this article will explore those differences as well as explain the exciting benefits that the Treasury will provide the Cardano ecosystem. In order to do that, however, let us first examine the role and functions of the traditional U.S. monetary system.
Traditional Monetary Banking
“The history of the [U.S.] Department of the Treasury began in the turmoil of the American Revolution, when the Continental Congress at Philadelphia deliberated the crucial issue of financing a war of independence against Great Britain.” Imagine, that 244 years ago — not even a mere blink of an eye on the cosmic clock — " The [U.S.] Congress had no power to levy [or] collect taxes , nor was there a tangible basis for securing funds from foreign investors or governments."