Imagine a cryptocurrency that is secure, scalable, governable and interoperable. Sounds like a dream right? Well, the dream is about to come true with third generation Blockchains.
What Is Cardano?
The cryptocurrency is a third generation open source platform facilitating smart contracts and Dapps in an unparalleled format.
But we already have Ethereum for that, what’s the difference with Cardano? Cardano is an improvement of Ethereum, a 2nd generation Blockchain, so expect Cardano to perform better. In any case, Ethereum has time and again faced congestions in its network. Only a network built from scratch can handle such a problem in retrospect. Cardano is the perfect candidate.
Cardano is like Ethereum on face value but inside is a robust and research-driven currency that lays the foundation of what needs to be achieved and how effectively it needs to be done. Just like Ethereum, Cardano has its own digital currency, the Cardano (ADA) that fuels the Cardano network.
How Cardano Works
Cardano is a network built in retrospect. It has been deliberately made modular so that future iterations and upgrades can be easy.
The network has two parts, the computational layer and the settlement layer. The former being a layer for computing smart contract and Dapp code and the latter for settlement of currency transactions.
The two-part feature makes it possible for the team to change consensus protocol on the settlement layer at any time without disturbing the computational layer. The vice versa is true as well.
Cardano CEO Charles Hoskinson states that the company aims at building a TCP/IP like protocol that can last for decades and make an inclusive economy for over 3 billion people. This is probably why much emphasis has been directed to research and review of peers.
The CEO also adds that they have carefully chosen a consensus protocol and is a proof of stake protocol called Ouroboros.
In Cardano, time is divided into epochs and then into slots with short time intervals of 20 seconds and each slot having a designated leader. The leaders can’t create more than a single block in their assigned slot and are awarded in form of transaction fee collected in an epoch.
The Cardano Team
The Cardano team is distributed and highly decentralized. It comprises of inspiring minds that come from three different organization;
The Cardano organization which is an independent standards body in Switzerland with the responsibility in supporting the community of Cardano users and working with authorities on commercial and regulatory matters.
The IOHK (Input Output HongKong) which is a Blockchain technology company formed by CEO Charles Hoskinson in 2015 to promote in person innovations and for the provision of financial services to over 3 billion people worldwide who are deprived. The IOHK has a contract of developing Cardano till 2020. Some of its other clients include Ethereum classic and Binance.
Emurg invests in startups and helps commercial ventures build the Cardano Blockchain