In this guide, you can find answers to questions such as what is Cardano (ADA) and what is Cardano (ADA) for?
What is Cardano?
Cardano is a distributed computing platform and ecosystem for decentralized applications. You can reach the official website of the platform from here .
The platform was created with the intention of solving all known problems of existing Blockchain systems, most importantly scalability, interoperability and flexibility. It is built on the ground that focuses on a scientific approach and is based on peer-reviewed academic research.
Cardano aims to provide seamless and secure asset transfer, advanced smart contract functionality, and the ability to host and run even very complex DApps.
Some of Cardano’s unique goals are:
- Division of accounting and computation
- Peer research
- Same acknowledging that multiple entities in the ledger must be taken into account
- Finding a healthy middle ground for regulators to interact with trade without sacrificing some fundamental principles from Bitcoin
- Full compliance with regulatory bodies
Cardano uses a proof-of-stake consensus mechanism. They developed their own pos algorithm and called this pos algorithm Ouroboros. Cardano’s source code is written in Haskell and is completely open source and patent-free.
It is very different from similar projects as its developers are trying to build something completely new and flexible for future upgrades (updates) and are in constant dialogue with regulators to make their networks conform to regulatory requirements.
Cardano Blockchain’s token is named ADA, named after 19th century mathematician Ada Lovelace, who is recognized as the first computer programmer. In the long run, Cardano Blockchain can host multiple tokens.
Founders and History
Cardano is the project of Charles Hoskinson. Hoskinson was a co-founder of Ethereum and Bitshares, leaving the Ethereum project due to a further development dispute and co-founded the IOHK company with Jeremy Wood. This company does active software development and is one of three organizations that develop and manage the Cardano ecosystem.
The other is the Cardano Foundation, a non-profit organization that aims to support and work with regulatory authorities.
Last but not least is Emurgo, which incubates business ventures and business integration into Cardano’s Blockchain ecosystem.
The Cardanos token sale took almost two years and raised approximately $63 million in funding on January 01, 2017.
Cardano mainnet went live on Friday, September 29, 2017.
Is Cardano Mining Possible?
No, Cardano’s mechanism is proof of stake. Tokens on the platform cannot be mined.
Proof of Stake
Using Proof of Stake for a cryptocurrency is a hotly debated design option, however, Cardano has decided to adopt it, as it adds a mechanism to ensure secure voting, has greater scaling capacity, and allows for more exotic incentive programs.
Cardano’s proof-of-stake protocol is called Ouroboros and was designed by a highly skilled team of cryptographers from five academic institutions led by Professor Aggelos Kiayias of the University of Edinburgh. Built using a rigorous cryptographic model, this protocol is beyond secure, its key innovation is a modular and flexible design that allows the combination of many protocols to increase functionality.
This modularity allows for features such as authorization, sidechains, subscribeable checkpoints, better data structures for thin clients, different random number generation formats, and even different synchronization assumptions. As a network evolves from having thousands or even billions of users, the requirements of the consensus algorithm will change. Therefore, it is crucial to have enough flexibility to adapt to these changes and thus future-proof the heart of a cryptocurrency.
What Separates Cardano from Other Cryptocurrencies?
Cardano has a fully funded development team and is not based on volunteer work. And most importantly, the project is the first cryptocurrency project built with a scientific approach.
Also, their software architectures are unique, Cardano separates accounting and computation at different layers. This layered architecture also has scalability. For example, Cardano thinks that “not everyone needs all the data”. This approach increases efficiency, speed and processing efficiency.
Posology algorithms Ouroboros is claimed to be the first model to be peer-reviewed and accepted by the cryptography community at the International Cryptography Conference.
Ouroboros protocol is a chain-based PoS protocol where the next block producer is chosen from a random pool of stakeholders. The probability of being selected as a block producer increases in proportion to the size of the number of tokens it holds. In addition, ADA holders have the right to vote on protocol changes.
Why Cardano?
Cardano was launched in 2015. The purpose of its emergence is an effort to change the way cryptocurrencies are designed and developed. Beyond a specific set of innovations, the overall focus is to provide a more balanced and sustainable ecosystem that better describes the needs of its users and other systems seeking integration.
In the spirit of many open source projects, Cardano didn’t start with a comprehensive roadmap or even an authoritative whitepaper. Rather, it adopted a collection of design principles, engineering best practices, and exploration pathways.
Cardano key features can be itemized as follows:
- Layering of accounting and computation
- Implementation of core components in highly modular functional code
- Peer-reviewed has a group that aims to compete with research. This group includes academics and developers
- Interdisciplinary teams can be heavily used
- Fast iteration between white papers, implementation, and new research to fix issues discovered during review
- Network improve the ability to upgrade post-deployed systems without destroying them
- Aims future use by developing a decentralized financing mechanism
- A long-term view to improve the design of cryptocurrencies so that they can work on mobile devices with a reasonable and secure user experience
- Bringing stakeholders closer to the operations and maintenance of cryptocurrencies
- Recognizing the need to account for multiple assets in the same ledger
- Attempt to learn from nearly 1,000 altcoins by adopting logical features
- Offering the opportunity to explore the social elements of commerce
- Finding a healthy middle ground for regulators to interact with trade without compromising some of the fundamental principles inherited from Bitcoin
( Where and How Can I Buy
Cardano ADA)?
You can use Turkey’s largest cryptocurrency exchange Paribu to buy ADA with Turkish Lira. With our guide titled
“ How to Buy Cardano ”, you can see how to buy Cardano in 4 steps.
Cardano’s Future Plans
Cardano has ambitious plans as well as developing its main platform. They aim to integrate sidechains, a virtual machine, Cardano debit card and human-friendly addresses into the platform.
The project has a wide scope and is quite ambitious. Time will tell if all this has been accomplished.
Our Review
Cardano is an exciting project from a technological point of view. It has a very well thought out and futuristic approach. However, if the pos-algorithms prove to be perfectly safe, that will be big news.
Proof-of-stake is not well researched and tested as proof of work. If Cardano can realize its very ambitious projects, I have no doubt that it will become one of the leaders in the smart contract and data ecosystem.
For now, Cardano has shown that they are a competent team and what this team has produced so far is impressive. From the investors’ point of view, it should be considered that the maximum supply is relatively high and the market value is also quite high, in anticipation of the successful realization of the project.
