What Is Cardano and Why Do Some People Call It The Linux Of The Cryptocurrencies?
Cardano catched the attention of investors and the entire crypto community since it got its place in the top 20 of the cryptocurrencies. While Ethereum has always been the top cryptocurrency in the Smart Contract market, it’s no doubt that Cardanao alias #ADA is also making its presence felt in the field when it entered the Bittrexexchange. For the first few days of its introduction, Cardano saw high volumes of movement. Even up until now, Cardano is doing pretty well in the Smart Contract market, trying to climb its way in the Bittrex Exchange.
When Cardano was released on the market, the price dropped in the first half of the day but somehow made its way up sometime before the day ended! In fact, we saw it reach the top 20 cryptocurrencies according to the market cap.
But What Exactly is Cardano?
First at all I think it is a must to mention that Cardano is an open source project which makes it very flexible and is a huge advantage compared to many of its competitors. One of Cardanos aims is to get a closer communication between the different cryptocurrencies. If you have Litecoins today in your wallet but would like to buy some Bitcoins or IOTAs, you are forced to do that by using a cryptocurrency exchange platform. With Cardano as a fundament, you could simply find someone who is selling Bitcoins maybe via your wallet and do the exchange without any exchange platform between.
To keep it simple, Cardano is a full-fledged blockchain created from scratch through Haskell, a programming language that makes use of a math based algorithm that provides a very secure protocol. Cardanos creation consisted of a powerhouse team including principal designer of Haskell Philip Wadler and co-founder of Ethereum Charles Hoskinson. With the knowledge of the weaknesses of Ethereum, new ways to improve Cardano are being researched. In fact, Cardano uses a multi layered approach so that it can have a more stable growth for the future.
The mining algorithm of Cardano is Ouroboros. The algorithm checks how each node reaches a consensus regarding the blockchain network. To put it simply, Ouroboros depends on the vote of the coin holders, making it very energy efficient and workable. While most cryptocurrencies like Bitcoin use proof of work, Cardano is taking a step in another direction and use proof of stake mining which Ethereum might soon follow suit.
That’s not the only cool thing about Ouroboros. Ouroboros also comes with a proof of security in its algorithm, making it even more secure. Of course, since the coin is still in its baby stages, it’s still locked up in private nodes. Charles Hoskinson explained that it might be another 6 months before the system takes off.
What’s in for Cardano in the Future?
It might be interesting to mention that Cardano has gotten a pretty good head start. However, it is expected that it will be two years before Cardano becomes a fully developed Smart contract platform.
Through efforts of Japanese team Emurgo and IOHK, Cardano will be built by IOHK under a five-year contract with Emurgo providing the design studio for the cryptocurrency.
Take some time and check out this awesome whiteboard presentation with Charles Hoskinson explaining issues of the current Blockchain and where the journey goes to:
Good to Know About Cardano #ADA?
- The Cardano Foundation (http://cardanofoundation.org)
- Emurgo (http://emurgo.io)
- The Cardano Wallet called “Daedalus Wallet” (http://daedaluswallet.io)
With Ethereum taking the top spot in Smart Contracts and ADA steadily catching up, it’s only been a few days since Cardano also started entering the platform when IOHK led its launch. The ICO offered the first 10,000 traders to download the Daedalus Wallet and avail of ADA tokens to trade in Bittrex. It was able to garner an estimated $62 million by selling around 30 billion vouchers of ADA. An estimated 45 billion ADA is now circulated on the market through the ICO.
As we can already see, Cardano could have a really bright future ahead. In fact, the next major launch is planned to happen in the first half of 2018 which will boost the system further, making Cardano a full grown cryptocurrency. We can expect a lot of features aside from Smart contracts such as side chains, metadata, or even multi party computation to show up. With this, we can expect Cardano to have a very stable foundation that can run independently even if IOHK decides to close down. 2018 will definitely see a very big evolution in Cardano.
It was announced that another hardware feature will be integrated sometime in 2019. This secure hardware feature will eventually allow off chain payments. This is, in fact, a big innovation for the blockchain world.
Of course, it is expected to take a few years before these features can all be fully integrated. However, the team behind Cardano does prefer to have a slow and steady launch instead of a quick but unstable one. That’s the reason why I consider Cardano as a sleeping Giant!
Cardanos team consists of engineers, IT researchers, blockchain experts, and the like in one whole team, plus the ex founder of Ethereum itself. This alone tells us that Cardano is gearing up for some whooping development and a very bright future to come. Cardano could even have the potential to even get very close to Ethereum.
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