Cardano is an interesting blockchain project. Many call it the third generation blockchain.
The reason is its scientific philosophy, developed by an international team of dedicated engineers and scientists.
The aim of the project is to offer a flexible and scalable technology that can be safely used by millions of users.
In contrast to other projects in the field of crypto currencies, Cardano pursues a policy aimed at reconciling the wishes of the users with those of the regulatory authorities. Privacy, in particular, is an important aspect of regulation.
Cardano’s vision is that the project will lead to greater global financial integration for all people. All people should have open and fair access to financial services. Cardano is working on a technological platform on which financial applications can be developed and executed.
It is indeed very similar to Ethereum. Cardano is a platform like EOS, Ethereum or NEO that enables the creation of tokens and decentralized applications (dApps) as well as Smart Contracts. From a technical point of view, however, there are considerable differences. But we’ll go into that later.
Cardano’s crypto currency is called ADA. As is usual with crypto currencies, ADA can also be sent quickly and securely by users via the Internet. You can find the current ADA rate at Binance, for example.
Cardano was founded by Charles Hoskinson and Jeremy Wood. These are two Ethereum co-founders. They had left Ethereum after a disagreement over further development. Their plan was to found a commercial company behind Ethereum. However, Vitalik Buterin’s group came up with a different idea. They set up a charitable foundation for the further development of Ethereum.
Hoskinson and Wood set up their own company to manage and develop Cardano. Between 2015 and 2017, Cardano conducted an ICO. This generated a total of 62 million US dollars.
The official launch of Cardano took place on 29 September 2017 and since then there have been many developments that are far from complete. In 2019, the project is to develop into a completely decentralised and independent system.
The integration of Smart Contracts is even planned for the future. In addition, the technology is to be further improved and the project more democratic. A complete list of all planned improvements can be found in the official Cardano Roadmap.
Charles Hoskinson recognized that second generation blockchains still have many unsolved problems. These problems prevent them from being successful in the long run. These include scalability and sustainability. Cardano has developed new concepts and technologies to solve these problems.
The transactions per second (TPS) are especially important for the success of a blockchain. They measure how many transactions per second can be written into a block. However, this is only one part of the problems associated with scaling. Bitcoin reaches 3-7 TPS and Ethereum even 10-20 TPS. But even these good figures are not enough to have millions of users. What could be the solution to this problem? Cardano has developed the Ouroboros proof-of-stake algorithm.
The network is another challenge. It must provide sufficient network resources even with exponentially increasing user numbers. Only in this way can the transactions of millions of users be processed without delay. It is assumed that the demand could reach several hundred terabytes.
Therefore, it will not be possible to obtain a homogeneous network topology in which each node forwards all transactions and messages. Not every node can have the necessary resources. Cardano is already working on a technology called RINA. It should get the problem under control.
The blockchain must store the data forever. Therefore, there will be an enormous amount of data that is constantly growing. The amount of data that can be stored by the blockchain must be scalable. If each node must store a complete copy of the blockchain, this is not possible for each node. There are not enough resources. The solution is simple. Not every node needs all data. Other ideas are, for example, to compress data.
Charles Hoskinson thinks that there will also be many crypto currencies in the future. Cardano therefore wants the different blockchains to communicate with each other. This could create an “Internet of blockchains”. There would be no intermediary in this Internet.
Sidechains should be the solution to this problem. This concept has been around for some time in the crypto area. These are parallel blockchains that communicate with the main blockchain.
In addition, Cardano attempts to comply with existing compliance rules. These include, for example, KYC (Know Your Customer), ATF (Anti Terrorist Financing) and AML (Anti Money Laundering). Cardano provides metadata for each transaction. This ensures the necessary transparency.
Sustainability is also a difficult challenge. The system must be continuously developed further. This requires appropriate financial resources. How can these funds be made available on a permanent basis? Cardano draws inspiration from Dash’s treasury system.
Whenever a block is added to the block chain, part of the reward goes to the treasury. These funds are used for the development of Dash. A governance model (“liquid democracy”) helps to distribute the funds in the best possible way. Regular votes are held on proposals for the use of the funds.
Proof of Stake
Cardano works with a Proof-of-Stake (PoS) system. In the Cardano network there are therefore no miners for the validation of transactions. Instead, a new proof-of-stake algorithm called Ouroboros has been developed.
The Cardano Coin can be bought on almost all large crypto exchanges. It is traded against numerous other crypto currencies, stablecoins and conventional currencies. Coinmarketcap currently shows 118 markets for this exciting coin. So there are plenty of opportunities to buy ADA. You can find it at Binance, for example.
What is Cardano?
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