What is Cardano?
In this third Coin Connoisseur article, we’ll get acquainted with another popular coin. Have you ever heard about Cardano (ADA)? Let’s find out all there is to know about it, so you can make informed trading decisions.
Cardano is a decentralized Blockchain that functions using the Proof of Stake technology. However, proof of Work networks encounters some problems because of how they were created.
These issues are scalability, interoperability, and sustainability since they are relatively limited because of the block size and fees. Also, consuming a lot of energy is not ideal for the environment — a problem that Proof of Stake networks managed to solve.
Charles Hoskinson, the Proof of Work Ethereum Blockchain co-founder, has understood the implications of these challenges for decentralized networks and started building Cardano and ADA, the network’s main cryptocurrency. The Cardano network works using the Ouroboros consensus mechanism. Ouroboros, firstly created by Cardano, is the first Proof of Stake protocol that has proven secure and reliable and was also the first consensus mechanism built using academic research.
Each developing phase from its Roadmap is anchored in a research-based framework, incorporating perspectives from peer reviews and using methods based on scientific evidence.
How does it work?
Cardano pursues a little distinct standard compared to different Blockchains. Its network has two layers: a fixing layer and a computational layer. The fixing layer is finished and functional. The fixing layer allows clients to send and accept ADA coins from one to another. It utilizes a method similar to Ethereum’s. The second layer’s purpose is to allow users to create and write Smart Contracts. However, even if it sounds similar to Ethereum’s Blockchain, Cardano holds some benefits.
Firstly, Cardano is more adaptable because developers can adjust it depending on final users’ requests. For example, other nations have diverse economic and financial regulations. Furthermore, because the computational layer is used separately, ADA holders can utilize the exact coin in various nations, respecting at the same time other rules and restrictions. Finally, the computational layer allows the team of developers to modify it without perturbing ADA or the fixing layer.
What Roadmap is Cardano following?
Multiple crypto industry problems were already known when the network was created, so Cardano was invented to solve them. The means incorporate creating a safer voting instrument for parties and separating its computational and fixing layers we have discussed earlier.
Ultimately, Cardano pledges a secure and verifiable Blockchain that is negligibly weak to cybernetic aggression and insured via mathematic protection. Therefore, Cardano has established a Roadmap along the way, well-defined for its objectives. Each phase, known as “an epoch”, is named after a famous poet:
- Byron (The Fixing Epoch)
In the 1st Epoch, the developers made sure that the network was operating efficiently without any issues, and they tested its functionality, authorizing users to purchase and sell ADA coins. Also, in this Epoch, the electronic wallet called Daedulus was built.
- Shelley (The Decentralization Epoch)
In Selley’s Epoch, the main objective was to decentralize the network and implement incentive and delegation schemes. Until Shelley’s Epoch ended, the goal was for Cardano to be from 50 to 100 spans better decentralized than different leading Blockchains.
- Goguen (The Smart Contracts Epoch)
Goguen (the existing Epoch) aims to implement Smart Contracts on Cardano’s platform. In addition, this Epoch offers the possibility to start assembling decentralized applications (also known as dApps) on the network’s framework. Even if technically it’s the third phase, a significant portion of Goguen’s work was accomplished in parallel with Shelley.
- Basho (The Scalability Epoch)
The fourth stage has the purpose of implementing higher scalability solutions. In this phase, optimizations concentrating on Blockchain’s performance will be observed. These will be conducted especially around interoperability and scalability (while networks share information and work together).
- Voltaire (The Governance Epoch)
The goal of this Epoch is to assemble an auto-sustainable network. Voltaire will introduce governance and treasury systems that will offer users the capacity to impact the future development of the network.
What uses can Cardano have?
The network can be used in commerce and retail. Because it could restrict the sale of fake goods, using a fortified key that confirms the genuineness of any produced goods.
Universities own the certificates of students and graduates. Therefore, students must order these certifications from their academic institution if they need these certifications. Cardano’s Blockchain could offer students a medium to securely handle their credentials and communicate them with employers or anyone that needs them.
Cardano can offer its users the possibility to hold meaningful, verifiable papers on the Blockchain. Therefore, the application time required for bank statements and other financial efforts will be significantly reduced.
Cardano, one of the best-known Proof of Stake Blockchains, alongside Ethereum, can be found on Your Friendly Crypto Exchange. IXFI provides spot markets for ADA against USDT, BTC, ETH pairs, and other cryptocurrencies. Register now for a seamless experience.
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