Cardano is a fairly fresh crypto project launched in September 2017, after more than two years invested in its development, it differs from other projects because instead of writing a normal line of code (whitepaper) it prefers to create “peer reviewed papers” which are public and all the experts in the world can propose changes or modifications, basically, they are open to any better idea.
It is the third generation of cryptocurrencies, after Bitcoin, which was created to transfer and store virtual money, but it is not scalable, transfers are slow, then comes Ethereum which brings smart contracts, which give a plus to scalability, but still can’t compare to Visa or other global payment methods, so this is where Cardano (+IOTA) comes in and tries to solve this problem.
Note : scalability is limited by the number of transactions, basically cryptocurrencies are looking to achieve the instant and multiple transfer that banks have as an example, currently all transactions are limited to blocks that have a protocol behind them, the average transaction time of a bitcoin purchase is 10-60min, it differs from day to day depending on how busy the network is.
Cardano – The third generation of cryptocurrencies is trying to solve three big problems:
1. Scalability
We need a higher transaction processing speed, a larger storage space and a larger volume that can be transferred per date (transactions per second, network bandwidth, data storage).
Note : The Cardano Ouroboros system tries to solve the problem of transactions per second by adopting the idea of reward by holding, an evolution from reward by work (proof of stake is over proof of work).
Blockchains are stored in P2P networks (computers connected to each other over the internet, files can be shared directly between systems in the network without the need for a central server, each computer in a P2P network becomes a file server as well as a client).
Each node in the network receives a copy of all transactions (the nodes check together the information presented to the blockchain, perform checks against other connected blocks of information and by consensus distribute the updated information to all other nodes in the network, after each change, the nodes put a kind of stamp called a timestamp, which indicates the changes since the last update), when there are thousands of transactions per second, the nodes need bandwidth to continue downloading, not being scalable, instead Cardano wants to divide the network into subnetworks, the technique is called RINA (recursive internetwork architecture), each node will be part of a specific subnetwork and can communicate with other networks if needed.
2. Interoperability of Cardano
This is described as the ability to work together, but due to the huge number of blockchains created (over 10,000) most of them individual, unwilling to work together, this is where the problem arises, plus the added pressure of governments and banks on cryptocurrencies breaking the chain.
Cardano wants to solve this problem with the “Internet of blockchains” project, a blockchain that will be able to understand what is in the other blockchains, something specific to the idea would also be that they want to allow users to add metadata, additional information such as your name, the recipient’s name, the reason etc.
Banks being always suspicious because they don’t have this metadata behind the transactions, it could be a bridge between the two camps (but it remains something extra, only the users will decide if they want to write or not).
3. Sustainability of Cardano
Nowadays a lot of people want to make money from blockchain, they create ICOs (initial coin offering) to support their project at the beginning, then invest in it, but what if in a few years they run out of money for development? Cardano comes up with an idea, create a treasury, where constant money will come from each transaction, and the money will not be owned by anyone, projects and ideas will be voted by the network, and depending on the capital needed, it will be drawn from the treasury.
The idea of the Cardano project emerged in 2015, after Charles Hoskinson was kicked out of the Ethereum team in 2014, total chaos, at the beginning of the road, everyone worshipped Vitalik and tried to influence him, but at the same time, everyone was self-proclaimed co-founders of Ethereum, there were eight of them, two of them made the first transaction on the Ethereum blockchain, one was called Gavin Wood, in the meantime he founded Polkadot, and the other was Charles, the one who laid the foundation for Cardano, however, a very suspicious character, especially in the eyes of Ethereum fans, because, he is accused of sociopathy and desire to have something better than Ethereum out of greed, even if so, the man has a chance to succeed and us to make money if we follow his “purpose” (besides, he has a great team, dedicated people and very good at what they do).
Cardano started the year at $0.18 and peaked at $2.46 on May 16, proving that promoting Musk’s idea, hasn’t hurt the rise of a crypto titan (a 13.6 fold increase in 6 months). It currently sits between 1.60-1.70.
Because of the many problems in Africa, related to banking, insurance or even everything related to a quality life, many people have turned their attention to solving this, one of them is Charles, along with Cardano, who wants to educate people in everything related to the blockchain system (they have an agreement with the government of Ethiopia for 5m students), plus many other projects that want to put Africa on an equal rank to the civilized world.
Link : https://africa.cardano.org
There’s a lot more to be said about Cardano, from the projects included in their ecosystem to the projects to come on their blockchain, I’ve tried to attach a few pictures to show in broad terms how complex their plan is towards winning the battle against the other two generations.
