Cryptocurrencies are facing a number of challenges: scale, energy usage, and being able to interact with regular money are just a few. This is where Cardano comes in. It’s a cryptocurrency that’s a sucker for problems, and its community are working to solve these problems and make them work on their network, for the benefit of everyone else!
What is Cardano?
You’ve heard of Ethereum, right? Well, it’s like that in that it wants to be a platform where people can create smart contracts. However, the creators of Cardano believed Ethereum was a bit too limited by its design.
They thought Ethereum wasn’t really designed for lots of people to use it, and because Ethereum has experienced splits or forks that disrupt the network. So they thought they could improve it by creating Cardano.
Who Invented Cardano?
The guy most responsible is Charles Hoskinson, who was actually one of the co-founders of Ethereum.
Did you know?
Cardano has taken the names of famous English poets and names major product milestones after them. According to the roadmap, Cardano recently finished the Byron stage and is now in the Shelley stage.
A brief history
📚Cardano began in 2015 as a research project to explore how cryptocurrencies could be improved.
👨🎨Two years later, Cardano was first released to the public on September 29, 2017. The first phase was known as ‘Bryon’ after the famous poet.
📡In Q2 2018 r it entered into the Shelley stage, where the network is rolling out new features to make it better at handling larger transactions.
What’s so special about it?
The team behind Cardano have been inspired by the peer-reviewed world of science, and brought over into the cryptocurrency.
What does that mean? Well, all changes and new features introduced have to be developed, reviewed and agreed upon by academics before being used. But it doesn’t stop there!
On the Ethereum network, to verify transactions they use Proof of Work which uses a lot of electricity and can only process so many transactions at once. On Cardano meanwhile, they use Proof of Stake, which uses a lot less power and the network chooses who creates the next block through a system called Ouroboros.
The team are working on a version of Cardano where not everyone needs to store a complete copy of the blockchain, allowing more people to use the network, while simultaneously being able to handle more transactions.
They're also working on a way to creating an ‘internet of blockchains’, where all cryptocurrencies can communicate with each other without the need for exchanges.
Did you know?
Cardano’s token is named Ada after Ada Lovelace, a 19th century mathematician recognized as the first computer programmer and daughter of the poet Lord Byron.
What else is different?
There are three parts to the Cardano:
- 📡The Cardano Foundation - supports the research and development of the network.
- 🏫IOHK - a company that works in conjunction with several universities on research and development.
- 🏢Emurgo - a separate company contracted to work on the blockchain and make it appealing to businesses.
How is Cardano produced?
Cardano’s ADA currency isn’t mined like Bitcoin. Instead of miners there are validators, which are chosen by the network depending on how much ADA currency they currently own.
If they’re selected to validate the transactions on the block, they place a bet on how confident they are on being able to verify all the transactions. If the blockchain verifies the validators block, they effectively win the bet and get a reward in ADA.
How do you get hold of Cardano?
Most people looking to get hold of ADA can pick them up on exchanges.
What can you do with Cardano?
While you can buy and trade ADA like any other cryptocurrency, it isn’t regarded in the same way as a currency like Bitcoin, which can be used to buy goods and services.
Cardano’s developers are hoping to solve some of the major problems facing cryptocurrencies more broadly by the end of 2019. If Cardano can prove that its rigorous approach to cryptocurrencies can bring big business in to the world of blockchain, they would be at the forefront of a crypto revolution in the years to come.