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Let's talk about ... CARDANO (ADA)

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Today a crypto currency that I have been keeping an eye on for a long time, and which is the last one in full swing due to the long-awaited upgrade of the main network. Shelley went live since July 29, so you know which crypto currency I am going to talk about today.

Today I take a closer look at Cardano.

Ethereum, however, is a second-generation blockchain with Cardano once again part of the third-generation blockchain technology. To explain briefly, the focus for the first generation blockchain was on sending decentralized money. The second generation added contracts to add more conditions to a transaction for greater control. The third generation, which includes Cardano, focuses on scalability, interoperability and sustainability.

Source code tested by scientific network

Cardano is the first blockchain platform to use source code that is tested by a large scientific network for bugs and vulnerabilities. Cardano uses the proof-of-stake model for the verification of blocks. This in contrast to Bitcoin that works on a blockchain according to the proof-of-work principle.

Both models aim to solve a block and create a new block in the blockchain. Where proof-of-work assigns responsibility based on brute, energy-consuming computing power, proof-of-stake assigns the creation of a block based on power (how much ADA someone has).

Plan for democratic voting system

What also makes this project special is that there is a plan for a democratic voting system where users can vote in order to have a say in the development and future of Cardano.

Ok, let's take a look at the specifications from Cardano

Cardano specifications:

  • Protocol: Proof of stake
  • Algorithm: Ouroboros
  • Total number of ADA 45,000,000,000

Characteristics of Cardano and the technology behind it

Unlike the descriptions for other cryptocurrencies, the features of Cardano and the technology behind Cardano have been merged. This is precisely because the most interesting features of ADA are of a technological nature.

Peer-reviewed network

Yes, it is a mouthful, but in short it means that a network of scientists and researchers ensures that new protocols for ADA are first tested extensively, by means of a scientific research method, before thinking about actual implementation.

Proof-of-stake model

Cardano chooses to let the reward depend on how many ADA tokens you already have. Cardano's proof-of-stake model would also be the only model with a mathematically proven safety and, just like the development of the technology, it also relies on the peer-review principle described earlier. Safety first seems to be the principle here.

Democratic voting system

Looking to the future, Cardano offers a democratic voting system to determine the direction of development. Users may vote for upgrades, updates and modifications maintained in some sort of library of proposed technology features.

DApps and Smart Contracts

Cardano also works with DApps and Smart Contracts, just like NEO. DApps are non-proprietary apps that cannot be closed and have no downtime. They run decentralized on the Cardano blockchain. Third parties can also develop these DApps. The aforementioned Smart Contracts are a specific form of a DApp. These Smart Contracts keep so-called metadata of a transaction. This is data that is not crucial for a simple transaction, unlike sender, receiver, quantity and time. Data in the Smart Contract can contain an additional condition, such as coordinates for track and trace of a physical shipment.

Shelley hard fork

On July 29, 2020, the good news for and from IOHK was announced, the Shelley hard fork of the Cardano blockchain had gone well. IOHK is the company behind Cardano and the upgrade can provide more decentralization thanks to the Ouroboros consensus algorithm. Ouroboros Hydra is Cardano's proprietary off-chain scalability solution.

Financial incentive

But what does all this mean? This means that stake pools (groups that use their coins together) can register on-chain and are visible to delegators, who can act on it by handing out jobs. This delegation process allows anyone who owns ADA to stake their coins through a stake pool to earn rewards, thus being financially incentivized to keep the network running safely and properly. In addition, ADA holders can also start and manage a stake pool themselves, for which they are of course rewarded.

*Charles Hoskinson is the CEO of IOHK and he is delighted:

"Decentralization is at the heart of everything IOHK does, from the way we structure our business to the blockchain we've painstakingly built over the past 5 years. The possibilities that this upgrade brings are enormous, this time next year we will see hundreds and decentralized applications running on Cardano, with numerous innovations and some truly world-changing blockchain use cases. "

Setting up polish

According to the press release, the goal is to have about 1,000 stake pools to promote decentralization. This number was already reached during the testnet phase. After launch, 485 of these pools are already active. Now that the hard fork has been completed, the stake pools can be set up and registered. Since many pools are already running on the testnet, this should only take a few hours of configuration time. These pools appear immediately after registration, and ADA holders can choose any active pool to delegate their coins.

End of the beginning

Shelley is the first step in a series of network improvements over the coming months. IOHK expects to have delivered Project Catalyst, a democratic governance model, by the end of 2020, which will allow the Cardano community to vote on the development of the blockchain, including software updates, technical improvements, funding decisions and the long-term of the system.

*A nice quote from Aparna Jue, Product Director at IOHK:

"Shelley is the result of 5 years of hard work to create a robust blockchain that is not only sustainable, but also solves all the fundamental problems that blockchain technology has encountered since its inception, such as interoperability, scalability and sustainability. It is a monumental achievement, but this does not mean that we do not develop further. We look forward to completing the Voltaire and Goguen phases of the Cardano roadmap, which will incorporate robust governance arrangements and smart contracts functionality this year."

Expectations

If we look at the price of ADA, it has had a significant rise in the past 3 months, although the coin is now moving in a downward line, it is not expected to fall completely and certainly not to the point it reached 3 months ago. its upward movement began. The future expectations for ADA are very positive as Japan owns the largest market for Cardano, and Japan has proven itself as a 'good crypto country'. If I do some searching on the internet for expectations, these are high for Cardano and by the end of 2025 the ADA could have made a jump from the 0.09 cents where it is now to 2 to 3 dollars per coin.

I am very envious of your opinion? What do you think about ADA?

Posted Using LeoFinance