Cardano (ADA) – A new Blockchain Introduced! All you need to know?


Cardano is a blockchain platform that is open to the public. It’s decentralised and open-source, with consensus obtained by proof of stake. Its own coin, ADA, can be used to allow peer-to-peer transactions. Charles Hoskinson, a co-founder of Ethereum, established Cardano in 2015.

Cardano is the first blockchain with a scientific philosophy, and is designed to evolve over time. Charles Hoskinson is also a co-founder of Ethereum. He has stated that Cardano will be the first blockchain to have an academic research team at its core. This team will work on formal verification and peer review to ensure the security of the platform.

Cardano was launched in September 2017 and was initially valued at $0.05. The price of ADA rose above $1 by January 2018, but it has declined since then as other cryptocurrencies have seen large gains in value. The price of ADA is currently around $0.09, which puts it around 20th place in terms of market capitalization for cryptocurrencies. It’s trading volume is around $17 million per day, which puts it around 500th place overall (around 1% of total cryptocurrency trading volumes).

What Is Cardano (ADA)?

Cardano is a blockchain platform that is open to the public. It’s decentralised and open-source, with consensus obtained by proof of stake. Its own coin, ADA, can be used to allow peer-to-peer transactions. Charles Hoskinson, a co-founder of Ethereum, established Cardano in 2015.

Cardano was launched in September 2017 and was initially valued at $0.05. The price of ADA rose above $1 by January 2018, but it has declined since then as other cryptocurrencies have seen large gains in value. The price of ADA is currently around $0.09, which puts it around 20th place in terms of market capitalization for cryptocurrencies.

It’s trading volume is around $17 million per day, which puts it around 500th place overall (around 1% of total cryptocurrency trading volumes).

About Cardano

Cardano is a blockchain platform that is open to the public. It’s decentralised and open-source, with consensus obtained by proof of stake. Its own coin, ADA, can be used to allow peer-to-peer transactions. Charles Hoskinson, a co-founder of Ethereum, established Cardano in 2015.

Cardano was launched in September 2017 and was initially valued at $0.05. The price of ADA rose above $1 by January 2018, but it has declined since then as other cryptocurrencies have seen large gains in value.

The price of ADA is currently around $0.09, which puts it around 20th place in terms of market capitalization for cryptocurrencies. It’s trading volume is around $17 million per day, which puts it around 500th place overall (around 1% of total cryptocurrency trading volumes).

Cardano’s partners, The Cardano Foundation, IOHK, and EMURGO, share responsibility for the evolution of the Cardano protocol ecosystem, which is decentralised.

The Cardano Foundation, a non-profit corporation, is the legal custodian of the Cardano brand and is responsible for its primary governance and control. The foundation raises the protocol’s awareness on a worldwide scale, develops use-case opportunities, and establishes connections with legislators, regulators, and academics.

Cardano was built by IOHK, a software engineering and technology business with a research department focused to boosting blockchain education. IOHK collaborates closely with academic partners to not only enhance its educational goal, but also to improve the Cardano protocol’s long-term scalability by informing platform upgrades with the most recent peer-reviewed scientific research prior to deployment.

EMURGO is the worldwide technology partner in charge of commercialising the Cardano protocol by integrating enterprises from many industries into their blockchain system.

Cardano Development Phases

Cardano’s development has been divided into five phases:

  • • Foundation (Byron era)
  • • Decentralization (Shelley era)
  • • Smart Contracts (Goguen era)
  • • Scaling (Basho era)
  • • Governance (Voltaire era)

This phase was originally called “Kvorum” and was launched on September 29, 2015. The development team worked on the Cardano network to create a public blockchain that could support the operation of a cryptocurrency. They also planned to incorporate a third-party scripting language, which would allow users to write smart contracts in their own programming language. Other features of Gusto include:

Support for peer-to-peer transactions as well as trading between different cryptocurrencies. This is called Ouroboros and will be released in phase 3 of the project.

A proof-of-stake consensus algorithm, which is said to be secure against attacks by quantum computers. The ability for users to create their own tokens (with specific rights attached). The ability to store data on the blockchain through an external database technology called “Plasma”. A multi-currency wallet service with support for fiat currencies, cryptocurrency exchange, and P2P transfers between users.

A standardized client software that is compatible with other blockchains. The software will be able to run on Windows, MacOS and Linux operating systems as well as mobile devices such as Android and iOS operating systems. This will allow users from all over the world to use this platform without being installed on an individual computer or phone device respectively.

Examples Using Cardano

Cardano is the 3rd largest cryptocurrency by market capitalization and has been featured in many high-profile companies, including:

GMO Internet Group announced on March 28, 2018 that they will launch a cryptocurrency exchange in Japan and that they will use Cardano as the base currency.

On February 8, 2018, it was reported that Ripple, one of the world’s largest cryptocurrencies by market cap, would be partnering with a consortium of banks led by SBI Holdings to develop a blockchain platform for cross-border payments. The platform is based on Cardano’s technology. This partnership was later confirmed by SBI Holdings in April 2018.

On January 30, 2018 it was announced that law firm Hogan Lovells would be partnering with IOHK (through its subsidiary Cardano Foundation) to create an international legal entity for research and development of Cardano’s blockchain technology. This new entity is called “IOHK Research” and will manage all intellectual property rights associated with IOHK’s R&D work on Cardano’s technology.

Cardano Requirements

Before you can use Cardano, you need to set up a wallet and make sure that you have the correct amount of ADA (Cardano’s native token) in it. You can do this by either downloading the official Cardano wallet app or by importing your private key into the official wallet website.

The algorithm used to build blocks and validate transactions is at the heart of every blockchain network. Cardano mines blocks with Ouroboros, an algorithm that employs the proof-of-stake (PoS) protocol. The protocol is meant to use as little energy as possible throughout the block generation process.

It accomplishes this by obviating the requirement for hash power, or huge computational resources, which are essential to the operation of Bitcoin’s proof-of-work (PoW) algorithm. Staking determines a node’s ability to construct blocks in Cardano’s PoS system. The stake of a node is equivalent to the amount of ada, Cardano’s cryptocurrency, it holds over time.

How Ouroboros Works

The Ouroboros algorithm is the heart of Cardano. It is a proof-of-stake algorithm that allows for secure and decentralized voting. It also includes a provably fair lottery system that shares the same level of security as Ouroboros.

Ouroboros Algorithm

The Ouroboros algorithm uses a two-tier network known as “Safespace”. This network consists of two parts: “Safepoints” and “Stakeholders”. Each Safepoint has one Stakeholder, but each Stakeholder can have multiple Safepoints. The Safespace network has an infinite number of nodes, but no more than 120 different stakeholders at any one time (120 stakeholders can be called upon to participate in the vote).

The number of nodes in the network is pre-determined and there are no other variables that can be changed to manipulate the network’s security. All votes are conducted via stake weighting (the amount of ADA held by each stakeholder) rather than via random selection.

The voting process itself is also random, so if any stakeholder attempts to manipulate their voting weighting, it will be discovered within a few blocks after their vote is cast. In order for votes to be cast on Ouroboros, stakeholders must first sign a transaction with their private key which confirms they are eligible to vote on any given issue and that they do not have any conflicting interests with other stakeholders.

Mining Considerations

Cardano uses Ouroboros as its proof-of-stake protocol. This means that the network itself is secure and decentralized, but it does require a great deal of computational power in order to generate blocks and confirm transactions.

The amount of computational power required will determine how much energy is consumed by the network. The longer the blocks take to generate, the more energy is required.

To make up for this extra cost, Cardano has created a very efficient Proof-of-Stake algorithm that consumes less than 5% of an average computer’s processing power. The algorithm also employs “rolling” or “recovery” blocks, which are transactions that are processed after every block is mined – these are used to keep the stake weighting system balanced and secure for all stakeholders.

In addition, there are no minimum or maximum block sizes. This means that Cardano can continue to scale as more users join the network and miners switch over from Bitcoin’s PoW model to PoS’ PoC (Proof of Correctness) protocol in 2018.

Conclusion

The Ouroboros network is unique in that it has no single point of failure. It can be changed at any time by a stakeholder, but it is not possible for a malicious individual to manipulate the voting process and cause issues for the rest of the network.

The fact that Ouroboros does not have a single point of failure also means that it is relatively easy to audit and verify transactions within the network. Because there are no other variables or parameters in place with Ouroboros, there are no possible attacks that can be launched against the network.


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