What is Cardano?
Cardano (ADA), co-founded by the former CEO of Ethereum, is of course entering the crypto radar with the popular nickname “Ethereum killer”. The link with Ethereum is not unexpected, as Cardano’s blockchain also makes use of smart contracts and decentralised apps (dApps). More on smart contracts and dApps later in this article.
Ethereum, however, is a second generation blockchain, where Cardano is already part of the third generation of blockchain technology. To briefly explain, the focus for first generation blockchain was on sending decentralised money. The second generation added digital contracts to add more conditions to a transaction for more control. The third generation, which includes Cardano, focuses on scalability, interoperability and sustainability.
Cardano is the first blockchain platform to use a source code that is tested for bugs and vulnerabilities by a large scientific network. Cardano uses the Proof-of-Stake (PoS) model to verify blocks, unlike Bitcoin which operates on a blockchain using the Proof-of-Work principle. Both models aim to resolve a block and create a new block in the blockchain.
Whereas Proof-of-Work (PoW) assigns responsibility based on brute, energy-consuming computing power, PoS assigns the creation of a block based on power (how much ADA someone has). What also makes this project special is that there is a plan for a democratic voting system where users can vote to have a say in the development and thus future of Cardano.
Up-to-date Cardano Price:
- Protocol Proof of stake
- Algorithm Ouroboros
- Total number 45,000,000
Characteristics of Cardano and the technology behind it
In contrast to the descriptions of other cryptocurrencies, the characteristics of Cardano and the technology behind it are combined. This is because precisely the most interesting characteristics of ADA are technological in nature.
Yes, it’s a mouthful, but in short it means that a network of scientists and researchers ensure that new protocols for ADA are first extensively tested by means of a scientific research method before the actual implementation is considered.
Cardano chooses to have the reward depend on how many ADA tokens you already have. Cardano’s PoS model is also said to be the only model with mathematically proven security and, like the development of the technology, relies on the previously described peer-review principle. Safe much?
Democratic voting system
Looking to the future, Cardano offers a democratic voting system to determine the direction of development. Users may vote on upgrades, updates and modifications that are kept in a kind of library of proposed technological features.
DApps and Smart Contracts
Cardano, like NEO, also works with dApps and smart contracts. dApps are apps that are not proprietary, cannot be shut down and have no ‘downtime’. They run decentralised on Cardano’s blockchain. Third parties can also develop these dApps. The aforementioned smart contracts are a specific form of a dApp. These smart contracts keep track of so-called meta data of a transaction. This is data that is not crucial for a simple transaction, as opposed to 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.