Cardano’s crypto currency ADA Coin(ADA) was introduced in 2017/9 and wasn’t seen by the market until the end of the 11th month.
Let’s begin by briefly introduction to Cardano and its cryptocurrency ADA Coin (ADA).
What is Cardano?
Cardano is a project based on blockchain that Charles Hoskinson cofounded to “provide an improved, balanced and durable cryptocurrency ecosystem.” According to the official website of Cardano the ADA has been described as the sole cryptocurrency that has a “philosophy and science-driven method”. This means that Cardano’s open-source blockchain has been thoroughly examined by scientists from academic institutions and developers.
The not-for-profit foundation that operates Cardano has also joined forces with a number of universities to study and review all aspects of the Cardano blockchain.For example, scientists at Lancaster University are developing a “reference model for treasury” to find sustainable ways to fund the future development of Cardano’s blockchain.
To find out more about Cardano Read this article.
What is it that makes Cardano different from Ethereum and Bitcoin?
Hands with cardano
What is the major difference between Cardano (and other cryptocurrency)?
ADA, despite its remarkable increase in just two months, is still a more of a lonesome in the market for cryptocurrency that is volatile.
ADA calls itself the first 3rd generation cryptocurrency, and aims to address scaling and infrastructure challenges that are demerits in Bitcoin, the 1st generation cryptocurrency that introduced the concept of digital coins, and Ethereum, the 2nd generation cryptocurrency that incorporates smart contract technology.Specifically, Cardano aims to solve issues related to scalability, interoperability, and sustainability in the cryptocurrency platform.
The first issue is the slowdown of the network as a result of the increase in trading volume and the increase in fees.Cardano’s algorithm Ouroboros has been suggested as solution to the growing problem.Ouroboros utilizes an Proof of stake (POS) approach to lower the energy cost and speed up transactions processing.Cardano’s blockchain is streamlining the number of nodes within the network by assigning a leader responsible for verifying and approving transactions made by an ensemble of nodes instead of having every node possess a copy of the blockchain on its own, which is common with Bitcoin.The reader node is then able to push transactions to the main network.
Cardano uses RINA (Recursive Internetworked Architect) to expand the network. Hoskinson stated that Cardano will be able to be competitive with TCP/IP as the leading method of data transmission on the Internet.
Interoperability is related to portability both in the natural ecosystem of cryptocurrencies and in the interface with the existing global financial ecosystem.Currently, there is no way to cross-chain transactions between cryptocurrencies or seamless transactions involving cryptocurrencies and the global financial ecosystem.Exchanges that crash or charge exorbitant fees are the only intermediaries.Various regulations relating to the identity of customers and transactions are moving the cryptocurrency ecosystem further away from its global counterparts.
Cardano’s mission is to permit cross-chain transactions through a sidechain. This lets transactions between two people who are not part of the chain to be completed. Additionally, it aims to provide ways for individuals and institutions to disclose transaction and identity-related metadata in order to make cryptocurrency available for trading and everyday transactions.
Sustainability is also the creation of governance structures which reward miners and other stakeholders, and independent economic models that are compatible with cryptocurrencies.In addition we want to create what producers describe as the “constitution” of the protocol to avoid nasty hard forks (such as those that took place in Bitcoin and Ethereum).
https://www.cakeresume.com/me/adahxlo040/ is expected to be embedded into the Cardano Blockchain in the future. Applications that use the protocol such as exchanges and wallets online will automatically verify the protocol’s compliance.
What’s the Cardano market?
Cardano currently uses virtual currency for its main purpose. Cardano has ambitious future plans. A list of applications that could be developed such as credit systems, ID management as well as automated crypto trading and Daedalus – the universal crypto wallet that can support cryptocurrency-to-Fiat conversions is listed on the website of the company.
As mentioned earlier the non-profit foundation which operates Cardano has created a comprehensive list of partners to improve algorithms and develop new governance structures.According Hoskinson the relationship is mutually beneficial because Cardano’s research projects align academic goals with those of the cryptocurrency industry.
is the current price of Cardano’s shares is it reasonable?
It is true that Cardano’s ADA philosophy is great, but it has the same drawbacks as other cryptocurrencies.That is, there is little to show in terms of implementation.The blockchain was just released in 2017/9, and the limited number of nodes in that network are all managed by the Foundation.
Hoskinson says that efforts to scale data will yield results in 2019 and beyond. Others, like the goal to standardize protocols, are still in study and will be implemented after Cardano’s applications have been extended.
Some critics say that Proof of Stake may end up looking like a plutocracy.
The cryptocurrency also faces fierce competition from other cryptocurrencies.Litecoin, an offshoot of Bitcoin, is seeking to play a similar role in everyday transactions.Dash, who influenced Cardano’s approach to governance, also has similar aspirations.Ripple may provide a strong competitor to Cardano’s ambition to be a bridge between the existing financial system and cryptocurrencies.
Summary
Cardano boasts a great vision and a great philosophy. However, it’s developing at a very early stage. We’ll have to keep track of what visions are put into practice.