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The Cardano network and the ADA native token started to open up to hosting play to earn projects. After years in existence, the Cardano network is becoming one of the potentially important hubs for building new games and tokenizing their economy.
In this guide, we cover the basics of accessing ADA and joining Cardano-based projects.
How the Cardano Network Works
Cardano is a proof of stake network where blocks are not produced by mining. Instead, owners of ADA can gain the rights, partially by luck, to produce blocks. The entire blockchain is split into parts called epochs, and a node is assigned to become the epoch leader and produce blocks.
Only node operators can produce blocks, but ADA owners can receive partial rewards. To do this, ADA owners can stake their assets in a pool.
The Cardano network has a layer for settling simple ADA transactions, and a layer for decentralized computation to carry smart contracts and other operations.
Cardano Has Smart Contract Capabilities
After the launch of the Alonzo network, Cardano is fully capable of carrying smart contracts as of September 2021.
Toward the end of 2021, there were dozens of projects based on the statistics of the Cardano developer portal. The Cardano Foundation counted 63 showcase projects launched since the introduction of smart contracts.
How to Access ADA
ADA is accessible through the Daedalus wallet, a mobile app available on Google App Store. Be arewa there are counterfeit apps and make sure you use the right tool.
The Yoroi lightweight wallet and Exodus wallet can also hold ADA. However, Exodus has not yet added tokens based on Cardano, or NFT collections.
Does Cardano Host Play to Earn
The Cardano network already hosts the building of Cardano for Speed, as well as the Cornucopias metaverse game.
The Cardano network carries multiple high-profile NFT collections, including a Punk knock-off collection, but those images are not yet gamified.
Is ADA Risky
The ADA token has a supply of more than 34B, potentially keeping a low per-unit price. ADA has peaked around $3, and has shown it can erase most of its value during market downturns.
Optimistic predictions see ADA appreciate to as much as $10 given the right market conditions and bullish attitudes.
Cardano and ADA are just growing their audience in the play to earn sphere, and may face challenges when adjusting the technology. The Cardano network offers a formal, tested approach to blockchain building. However, smart contract flaws or malicious attempts are still a risk.