Understanding Cardano’s (ADA) Conversions

In this post, we are going to talk about the amazing new feature that allows you to easily convert your ADA coins into any other currency you desire. This is an incredible feature that was recently added to the Cardano wallet and it makes trading in ADA coins extremely easy and convenient. So what exactly does this new feature allow you to do?

The answer is simple to convert any currency to ADA and back again! Let’s say you have some ADA coins and you want to trade them for Euros. Well, with the new feature, you simply enter the number of Euros you wish to the ADA Converter. Next, you select the coin you want to use. From there, your Euros will appear in your “From” field, and your ADA coins will reappear in the “To” field. It’s that easy. But there’s a slight catch you can only do one-way conversions. For example, if you enter $100 into the “From” field and select Bitcoin (BTC) as the “To” currency, then you will receive 100 ADA coins in return.

Using the ERC20 For Seamless Conversions

The Cardano team has also made it easy for all ERC20 token holders to use their awesome new feature. Let’s say you hold an ERC20 compliant token on another blockchain such as Ethereum or Bitcoin. Well, you can now easily convert that ERC20 compliant token to ADA using the new feature. Let’s say you have some Ether (ETH), and you want to convert it to ADA. All you have to do is send your ETH to any address which is holding an ERC20 compliant token.

48.jpg

Once that happens, you will receive an email with a link to a webpage where you can enter the amount of ADA you want to receive in return for your ETH. Next, you simply select the ERC20 compliant token you want to use for the conversion, enter your ETH into the “From” field, and your ADA coins will appear in the “To” field. Converting ADA to any currency necessary. 

Solving The Issues Of Current Liquidity Pools

The Cardano team has also taken another big step towards solving the issue of liquidity by creating a new form of smart contract known as an oracle contract. An oracle contract is used to retrieve data from an external source such as an internet API or a trusted 3rd party.

In this case, the oracle will be a blockchain-based oracle retrieving price data from one of the many available cryptocurrency exchanges. Once the oracle has retrieved the price data, it will be stored locally on the blockchain. This means all ERC20 compliant token holders will be able to use the oracle at no additional cost. And the best part is they don’t even need to know the address of the oracle.

Comments are closed.