What is Cardano?
Cardano (ADA) is a decentralized, open source blockchain project from Input-Output HongKong (IOHK). It was launched on 29 Sept 2017. They are developing smart contracts which take cryptocurrency to a whole new level. According to them, Cardano belongs to the 3rd generation of cryptocurrency which solves the problem with Bitcoin and Ethereum (more on it below).
So, what differentiates them from other crypto coins in the market? It is their approach to the problem. They put their academic work and let it go through the peer review. This is very different from other ICOs which are just want to get started with no real-world testing or knowing that their idea will work in real-world scenarios. Their approach is unique and banks on the idea that there is no future failure.
Charles Hoskinson, one of the team members from Ethereum is part of the Cardano. This gives the project a clear backing form a prominent member of the cryptocurrency community.
Cardano: ADA In short
- Date of launch: 29th Sept 2017.
- Coin Supply: 31,112,483,745 ADA
- 3rd generation blockchain technology
- Proof of Stake Algorithm: OuroBoros
- Wallet: Daedalus
- What is it trying to do? Trying to solve the issues with Ethereum and come up with a solution with ADA
Why are they building Cardano?
They are building Cardano to solve the problem with the previous generation of cryptocurrency. For example, Bitcoin can only make a simple transaction. It works as an accounting system. However, there are back draws to Bitcoin as it is hard for day trading as transaction costs are high. Similarly, ETH is faster than Bitcoin and also gives developers the ability to create ERC20 applications with smart contracts.
Cardano tries to build upon them and provides a framework where sustainability, interoperability, and scalability is maintained.
Let’s discuss the points below.
- Interoperability — Interoperability is the ability to interact with other blockchains. Cardano plans to use different technologies such as atomic swaps/ side-chains to make it happen. Communication is the main reason behind the interoperability between different crypto coins. Cardano wants to make transactions between them possible. And, that’s game-changing.
- Sustainability — Implementing a system of governance which is better compared to what the first or second generation of cryptocurrency offers. The proper implementation is yet to be done.
- Scalability — Scalability is an important factor in the success of a crypto coin. Cardano has it. It is about making blockchain scale with more users into it. Scalability is also about making transactions faster.
Proof of Stake Algorithm System: OuroBoros
Cardano uses Ouroboros PoS Algorithm. OuroBoros offers fully scientific based protocol and is easy to verify. As all the paper released by the team are peer-reviewed, they are all secure and have very small chance to fail.
How to store ADA? Wallet: Daedalus
Daedalus is the wallet that is both secure and multi-platform for ADA cryptocurrency. It also supports the hierarchical deterministic feature.
Daedalus offers advanced features in the wallet, and the team is planning to improve its functionality in the future.
Goals and Ambitions: ADA is a highly Ambitious Project
They are trying to build a third generation of cryptocurrency. They are trying to streamline the whole cryptocurrency ecosystem to work together. Intra-trading can be the future, and they are working towards it. Their philosophy is unique, and they are trying to solve it academically.
Should you invest in ADA?
In such as short time, it has increased exponentially in the past few weeks. However, it has shown some resistance to the current price, and I think this is the best time to buy. It is also holding strong around the current value.
Considering all the factors and the fact that Cardano is not marketing their campaign so aggressively, it is performing nicely. So, should you invest in it? Probably, yes. But please do not take this as an investment advice. As everyone say, #DYOR.
Certain strengths about Cardano are as below:
- They have a clean timeline. For example, they have multi-sig wallets, Quantum resistant signatures.
- They are open source, and if you are tech savvy, you can go to GitHub and look at their code.
- They will create a universal framework.
- They keep updating their timeline with changes and are also transparent in what they are trying to achieve.