Cardano (ADA) – the 7th largest cryptocurrency by market cap, is looking far-beyond becoming just a payment system for the regular cryptocurrency investor as it has seen a lot of positive development recently. With many new partnerships and beneficial contacts around the globe, Cardano (ADA) could very well see the rapid run from cents to dollars just like Ethereum and Bitcoin before it. Cardano is a third generation cryptocurrency running on blockchain written in Haskell code. It allows formal verification of code, and easy extensibility through a layered architecture.
At the heart of Cardano is Ouroboros, the algorithm that underpins the ADA cryptocurrency. Developed by a team of researchers led by Professor Aggelos Kiayias of the university of Edinburgh, Ouroboros is the first proof-of-stake algorithm to be provably secure and accepted to the leading cryptography conference.
Charles Hoskinson, Cardano CEO source: BitNewsBot
Cardano is the “first blockchain project to be developed from a scientific philosophy, and the only one to be designed and built by a global team of leading academics and engineers. It is essential that the technology is secure, flexible and scalable for use by many millions of users. Consequently, considerable thought and care from some of the leading experts in their fields has been devoted to the project and informed design decisions. The scientific rigour applied to mission-critical systems such as aerospace and banking has been brought to the field of cryptocurrencies, with a high assurance implementation. We believe this is the first time that this has been done.”
Cardano will balance the needs of users with the needs of regulators – combining privacy with regulation. Cardano’s regulated computing will bring greater financial inclusion by providing open access for all to fair financial services.
Cardano’s team is working at the frontier of computer science in order to design an easier way of connecting. As development in the project progresses, more people all over the world become interested and want to learn specifics. This is why IOHK recently made its first trip to Germany where they talked about the future of the third generation coin.
Senior members of the Cardano team, Dr. Lars Brunjes and Dr Philipp Kant, recently gave a technical talk at Hamburg’s Blockchain Mania last month where they highlighted key features in development. Dr. Kant talked about the Ouroboros method is an efficient alternative to the energy-intensive proof-of-work protocol that underpins Bitcoin and how Plutus and the IELE Virtual Machine are essential components of smart contracts that use sidechains in order to help scalability.
Cardano takes that cryptographic research, expressed in academic language, mathematical formulae and proofs, and turns it into Haskell code. This code is what allows for a computer to comprehend the data. Additionally, the research papers will not account for facts that arise during real world operation.
Transaction fees are an important part of Cardano’s incentive scheme. When Ada is sent, a small fee is paid for the transition, to validate it. These fees help prevent Distributed Denial of Service (DDoS) attacks by imposing a financial barrier for any adversary intending to flood the network with spam transactions. The fees also provide funds for Cardano’s incentives.
Incentives are distributed each epoch, the operation of Cardano’s Ouroboros algorithm being divided into epochs that each last five days. Transaction fees are collected for the blocks created during each epoch, pooled along with Ada from monetary expansion, and the total is distributed to stakeholders, according to the stake they own.
Cardano was launched in September 2017 and is rather different from other cryptocurrency projects because it is built around peer reviewed papers and research from some of the world’s foremost universities. Instead of writing a white paper and implementing it straight to code, the Cardano team makes sure experts from around the world read and review their paper.
When CEO of Cardano and co-founder of IOHK, Charles Hoskinson, had an interview with Rachel Mcintosh in February he discussed how Bitcoin advertised itself as a payment system and a means of exchange. He specifically said: “…within 6 months or a year, we will be pound-for-pound better than Ethereum and Bitcoin in every dimension and aspect, just based on how our roadmap is rolling out.”
Hopkinson believes there are other contenders in the mix, specifically Ripple (XRP), that will compete head to head with ADA. However, the Cardano CEO feels that their technology and philosophy will ultimately catapult them above the rest.
Hoskinson plans to add additional security for the platform that will ensure that all investments are properly protected. This security system will include education for the system’s users via podcasts and publications. Hoskinson sees Cardano as a long term hold; something that will be used 50 years from now.