The 21st-century digital world is home to new technologies and networks that take over the internet. A lot of new technologies emerge and are adopted by the community. In recent times the blockchain industry has also evolved a lot. A lot of new cryptocurrencies are making its way in the industry. Recently we’ve seen a modern and technologically advanced currency called Cardano.
Cardano is a cryptocurrency developed based on Ada, thus ensuring the fast movement of digital cash across the network. Transactions are made safe using cryptography. Cardano uses Daedalus wallet, which is a secure multi-platform wallet for Ada cryptocurrency. After a development period of about two years, Cardano was released in September 2017.
Cardano ICO raised almost $62 million. Several essential factors make Cardano special and unique from others. One of the things that make Cardano different from other technologies is that this project is developed based on peer-review systems, i.e., a system where multiple experts gather in a group and review white papers of each other and make further decisions for the platform based on the reviews.
Cardano is based on the concept of decentralized networks. Decentralized systems are now being highly used in the blockchain industry as they offer scalability and security.
Cardano is known as the 3rd generation of cryptocurrencies. Bitcoin is the first generation of cryptocurrencies, it is gold of the virtual world, but it had scalability issues that demanded an advanced form of cryptocurrencies.
This is a question that has been up for debate for some time. There are similarities but a few things that set Cardano apart.
Etherum brought smart contracts and solved scalability issues to some extent, but it wasn’t enough for it to be known as a global currency. Cardano aims to address the problems of these two generations and is considered to be the new and evolved third generation of cryptocurrencies.
Cardano is working on resolving three main problems of previous generations of blockchain such as Etherum, i.e., Scalability, Sustainability, and Interoperability.
Cardano is one of the technologies released without a white paper or a proper road map. The focus is to gather a group of people who use the best engineering techniques and methods to advance towards exploration.
As discussed earlier, in contrast to other technologies, Cardano is built on the concept of philosophy and academic research, thus making sure there are several expert minds behind its development.
The main criteria on which success of cryptocurrency is judged is its ability to handle maximum transactions per second. To handle multiple transactions in given second Cardano Ouroboros solve this by using proof-of-stake, instead of proof-of-work.
Bitcoin lets every user to mine blocks, making the process slow and resulting in wastage of resources. Cardano solves this efficiently by first not allowing everyone mine new blocks and uses few nodes for this purpose, known as slot leaders.
Cardano divides the time into epochs; each epoch contains slots, which is a small period that allows one block to be created in it. Each slot elects a slot leader by the network; the slot leader will be the only person who could mine a block in that slot.
Slot leaders are also responsible for transactions verification and putting them in their respective slots. If a slot leader fails to complete the tasks or is idle for some time, he loses the right to produce a block and is made to wait until the network re-elects him.
The technique used by Cardano makes it highly scalable as it can increase the number of slots per epochs and could run multiple epochs in parallel.
The network bandwidth problem is one of the significant issues in making a technology scalable. Blockchains work in a P2P network. Each node receives a copy of each transaction, meaning in case of many transactions per second, massive bandwidth will be required at nodes end that is not very scalable. Cardano solves this by splitting the networks into further sub-networks using RINA technology, where each node is part of specific sub-network that could communicate with other systems if required.
Ever-growing data storage is also one of the significant problems. Blockchain has to store every transaction that happened on the system — thus making it very difficult to handle. Cardano aims to solve this by using advanced methods of Pruning, Compression, and Partitioning, but these techniques are to be used in the future by Cardano.
Currently, three organizations are involved in the development of Cardano. First being the Cardano foundation, a company based in Switzerland responsible for handling core responsibilities.
Another entity working on the project is IOHK, one of the leading cryptocurrency research and development companies.
Emurgo is the third one helping in the development of Cardano. Emurgo is a significant business partner in Cardano Project; it is a company that invests in startups and assists commercial ventures for the Cardano blockchain.
It’s been almost four years since Cardano was launched, with the primary purpose of making efforts to change current trends adopted in blockchain and cryptocurrencies and making an open-source technology for users and other systems seeking integration.
Due to government policies and strict regulations regarding the cryptocurrency, it’s agreed upon that one coin will not be enough to be used in every system. Cardano is all open to provide a transparent integration system for other currencies.
If Cardano succeeds in changing how cryptocurrencies are designed, funded and evolved, it will be one of the greatest achievements in the blockchain technology.
Cardano currently receives our Highly Likely To Succed rating.