Can Cardano (ADA) be the future of the blockchain?
Cardano is currently taking the DeFi world by storm and its hard fork update is scheduled for today, March 1st. It was the first proof-of-work (PoW) -based crypto to achieve mass adoption, followed by an attempt to move from proof-of-work to proof-of-stake (PoS).
We'll discuss the potential of being the first fully PoS-based crypto to hit the mass market. Since it is completely open source and was developed in collaboration with recognized researchers, it is likely that it will blow up soon. Cardano's organization is made up of three main actors, which we will also discuss in this article.
What makes (ADA) so special?
Cardano's strength lies in their approach and vision. The Cardano team takes a scientific, academic approach with peer-reviewed papers, an excessive number of PhD students, and university affiliations. They explain everything on video, super old school, with a whiteboard so that even those unfamiliar with the terminology can get to the heart of the concepts.
EMURGO is the finance and trading division of the company behind the Cardano Ada token. You have a vision for solving real-world problems on the ground that affect today's world with the help of the Ada coin.
Her “Africa Strategy” aims to drive Cardano's acceptance on the African continent among everyday users and companies by working with local stakeholders such as governments, NGOs and private sector companies to carry out projects. They also train and train local developers to come up with solutions to local problems.
How is Cardano different from Bitcoin?
Cardano uses an open source blockchain based consensus system like Bitcoin, but uses Proof-of-Stake (PoS) instead of Proof-of-Work (PoW). This means that mining Ada doesn't require a large amount of computing power to function like BTC, but rather staking, which uses the money (Ada) you have on the blockchain to verify transactions. The blocks with large amounts of money can be considered legitimate. In this way, Cardano skips the high transaction times and fees inherent in Bitcoin and, as of now, Ethereum. The operation of a pool has minimum requirements:
"Mary" update and Goguen era
According to Cardano's roadmap, the Cardano blockchain will develop in five phases, known as eras. Each era will focus on one aspect of Cardano's evolution. The "Mary" update is the first step in implementing the third era called Goguen, which is focused on developing and deploying smart contracts protocols. The five main phases (eras) of Cardano's development are:
Byron (founding period)
The Byron era of Cardano began in September 2017 with the introduction of the first version of Cardano. Cardano's Byron phase enabled ADA to be bought and sold on an interconnected network based on the Ouroboros Consensus Protocol, the first PoS protocol based on extensive academic research.
Shelley (decentralization time)
Shelley is an integral part of Cardano's transition to better decentralization. The Shelley mainnet was officially launched on July 29, 2020. This ushered in the proof-of-stake era for Cardano and offered participants stake rewards. The Shelley era will give way to better network participation within the community by moving more nodes under their own control.
Goguen (era of smart contracts)
The Goguen mainnet is expected to start on March 1, 2021. The Goguen era will usher in greater technical ability for developers to create DApps that can add more functionality to the chain, including implementing their blockchain plan for multiple assets. Another feature made available through the implementation of Goguen is greater interoperability with other existing smart contracts, regardless of the differences in coding language with which they were developed. The "Mary" update is the first update to usher in the Goguen era.
Cardano's Voltaire era will put the finishing touches to the network so that it can mature into a fully self-sustaining and decentralized platform. A voting and treasury system will be introduced in Voltaire, and participants will be able to use their shares and voting rights to control the future development of Cardano. With these elements of self-government, Cardano's path to full decentralization is completed and its management will be transferred from IOHK to its community.
IOHK, the technical wing behind Cardano's development, has successfully trained and hired young software developers and used Cardano in Ethiopian agriculture. This involved training an all-female class of Ethiopian and Ugandan students with Haskell (the language Cardano was built with) for a period of 2 months.
IOHK has worked closely on the development of Plutus, a purpose-built intelligent contract development language and execution platform using the Haskell functional programming language. Plutus is already available for testing and brings the advantages of functional programming into intelligent contract creation. Additionally, a code base can support both on- and off-chain components, improving the coherence and ease of use of the development experience compared to existing smart contract implementations.
Last week, startup MuKn and blockchain research and development company IOHK announced a partnership to add the Glow programming language for Dapp development to the Cardano blockchain. Glow is a domain-specific language that anyone can use to write blockchain-based applications and deploy them on Cardano. Glow will initially be launched on Cardano's Ethereum Virtual Machine (EVM) developer network (Devnet), an environment where developers can currently write in Solidity (the smart contract programming language used in Ethereum) and provide those smart contracts for testing.
Cardano's future: his hopes and dreams
Cardano was founded by Charles Hoskinson, the co-founder of Ethereum. It's supposed to be a next generation blockchain designed from the ground up to solve all of the problems that previous generations like Bitcoin and Ethereum had. It takes a scientific approach to problem solving with academic peer reviews of everything they do based on three design principles:
Cardano tries from the beginning to solve the scalability problem. To do this, they rate the scalability problem as increasing the number of transactions per second that the network can process and increasing network availability and data scaling. Come to the end of the Shelley era.
We estimate Cardano to be 50 to 100 times more decentralized than other large blockchain networks. The incentive system should achieve a balance of around 1,000 investment pools.
Current known blockchain networks are often controlled by fewer than 10 mining pools, putting them at serious risk of being compromised by malicious behavior, something Cardano avoids with a system that is inherently designed to be more decentralized promote. In addition, the entire Cardano network runs at a fraction of the electricity cost of equivalent proof-of-work blockchains, using the electricity equivalent of a single house instead of a small land.
Interoperability refers to the ability of a blockchain to interact with other blockchains. Charles Hoskinson, the founder of Cardano, said, "There won't be a single coin that rules them all."
It is very likely that in the future we will have a lot of tokens and blockchains for different use cases. Cardano intends to position it as the "Internet of Blockchains," which means that they can provide seamless interoperability between different blockchains so that all projects can be linked together. To do this, they want to develop "side-chain" solutions that can implement "cross-chain" transactions.
According to Charles Hoskinson, this is possibly the hardest problem to solve. It relates to how Cardano will pay for future developments and growth. The best-known idea is the implementation of a treasury system in Cardano's blockchain, which is very similar to the way the treasury system works.
In short, this system uses some of the block rewards as a deposit into the treasury.
To that end, the Voltaire era will provide network participants with the opportunity to come up with suggestions for improving Cardano that stakeholders can vote on, using the pre-existing stakeout and delegation process. Whenever a new change is proposed or a new feature is to be introduced into the network, developers must submit a ballot, and Cardano's stakeholders can vote and decide whether or not to approve the ballot. If the proposal is approved, the ballot will receive the grant for development.
Cardano is slow to deliver its solution compared to Ethereum and other general-purpose blockchains. However, this is because quality and safety are not compromised by schedules, which leads to errors in these fast-paced times. The scale of this endeavor is enormous, and its many years of development will continue for at least the next 10 years.
The Cardano team needs to balance profitability with their already sophisticated theory and this will be their greatest challenge. Their reliance on community participation is also massive, so they need to increase their visibility to the public. Failure to meet expectations at this point can be fatal, especially since its operation depends on holders' involvement in Cardano (ADA).
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