Accept ADA Cardano Payments
As the growth of the overall cryptocurrency market continues to accelerate with each passing day, questions about cryptocurrency payments are becoming increasingly frequent as well.
And one of these most asked questions has become “How to Accept ADA Cardano Payments”.
In this post we will be answering that question, along with detailed information about what Cardano actually is, and what the benefits are of accepting it as a form of payment.
Here’s a brief overview of Cardano (ADA) before we dive in:
- World’s eighth largest cryptocurrency by total market cap.
- Almost 200K transactions per day.
- Faster, cheaper, and safer than other cryptocurrencies.
payments
What is an ADA Payment?
ADA payment is a transaction made using ADA, the native cryptocurrency of the Cardano blockchain platform. When someone mentions ADA, they refer to the Cardano cryptocurrency token used for these transactions.
Cardano is a third-generation blockchain designed for smart contracts, decentralised applications (DApps), and multi-asset ledgers with a strong focus on security, scalability, and sustainability.
ADA payments leverage the advanced features of the Cardano blockchain to provide a secure, efficient, and flexible means of transferring value between parties.
As of February 24th 2024, Cardano processes 196,287 transactions per day, or 6,137 per hour, showing both its popularity and speed as a payment method (*).
Cardano Transaction Process
Ok, now that we know what ADA is, how exactly does the payment transaction process look like?
The process is quite similar to many of the other top cryptocurrencies, with slight differences of their own.
Here’s a detailed breakdown of how a payment transaction process unfolds on the Cardano network:
1. Initiation Of The Transaction
To start, both the sender and receiver need to have a Cardano-compatible wallet as these wallets generate cryptographic keys that secure the assets and enable transactions.
The sender initiates a transaction by specifying the amount of ADA to be sent to the recipient’s wallet address. This action creates a transaction request and takes us to our next step.
2. Transaction Signing
The sender’s wallet uses the sender’s private key to sign the transaction digitally. This signature proves the sender’s ownership of the ADA without revealing the private key itself.
The digital signature and the public key associated with the sender’s wallet address are crucial for the network to verify the transaction’s authenticity while maintaining security.
3. Broadcast To The Network
Once signed, the transaction is broadcast to the Cardano network. Cardano nodes, run by stakeholders in the network, receive the transaction details.
The transaction enters the mempool, a holding area for transactions waiting to be included in the next block.
4. Transaction Verification
Cardano uses the Ouroboros proof-of-stake protocol to select a stake pool to produce the next block. This selection is proportional to the stake or the amount of ADA the pool has.
The selected stake pool validates the transaction, checking the digital signature against the sender’s public key and ensuring the sender has enough ADA to cover the transaction and fees.
5. Block Addition
Once the transaction is validated, it is included in a new block created by the stake pool.
This block is then added to the Cardano blockchain, providing a permanent, immutable record of the transaction.
6. Confirmation And Finalization
The transaction is considered confirmed once it is included in a block on the blockchain. Additional confirmations occur as subsequent blocks are added, further securing the transaction.
Both the sender and receiver’s wallets can detect the transaction’s inclusion in the blockchain. The receiver’s wallet reflects the received ADA, minus any transaction fees paid by the sender.
Why Accept Cardano (ADA) Payments?
Now that we know how they work, it’s probably a good idea to discuss why someone would prefer to accept ADA Cardano payments over other cryptocurrencies.
Below we have outlined three main reasons:
1. Lower Transaction Fees
Cardano’s transaction fees are notably lower compared to many other cryptocurrencies, especially those using proof-of-work (PoW) mechanisms like Bitcoin.
This cost-efficiency can lead to significant savings for both merchants and customers, making ADA an economical choice for transactions of all sizes
2. Faster Transaction Speeds
Thanks to its Ouroboros proof-of-stake (PoS) consensus mechanism, Cardano achieves faster transaction processing times (*).
Transactions on the Cardano network can be confirmed within minutes, providing a more efficient payment process compared to networks that can take longer to confirm transactions.
3. Security And Reliability
Many people aren’t aware of this, but Cardano actually happens to be the first blockchain platform to be built through peer-reviewed research, making it one of the most scientifically sound projects in the space.
Built on that foundation of peer-reviewed research, Cardano is one of the most secure blockchain platforms (*).
Its rigorous development process ensures that the network remains robust against attacks and operational failures, offering peace of mind to users and merchants.
How to Accept Cardano Payments
We know how they work, we know why users love them, and now it’s time to explain how to accept ADA Cardano payments.
Accepting Cardano (ADA) payments through a service like CryptoProcessing.com makes the entire process much easier on companies that don’t have the resources or expertise to integrate crypto payments on their own.
Here’s a step-by-step guide on how to get started:
- To start accepting Cardano and any other cryptocurrencies you may want, first fill out the form on the CryptoProcessing website.
- Shortly after your submission, you will receive an email inviting you to discuss your needs with a knowledgeable representative from our team who will guide you through the platform’s features and answer any questions you might have.
- After that you will receive a customised proposal from CryptoProcessing that perfectly aligns with your specific business model and requirements for transactions.
- From there all that’s left to do is provide the necessary Know Your Business (KYB) documentation to confirm the collaboration, and then the fun can begin.
- One of our dedicated account managers will be assigned to you and walk you through the entire setup process, ensuring that everything is integrated seamlessly.
Once that is set up, you are now ready to accept cryptocurrency payments from your customers.
So what are you waiting for? Start today by filling out the form below:
Cardano Payments
and we'll walk you through the process!
