Categories
Crypto University

What is Cardano (ADA)? How it works?

Cardano is without a doubt one of the most interesting cryptocurrency projects in the market today.

Bitcoin gave us decentralized payments, Etherium gave us smart contracts and cardano aims to improve upon the cryptocurrencies that came before it. Here’s how this is your first time here and you want to learn all about cryptocurrency start now by subscribing and clicking on the belt. So you don’t miss anything.

Carrdano is the third-generation the Centralized blockchain based system powered by the Ada coin the cryptocurrency which runs on the Cardinal platform. It borrows elements from and improves upon the cryptocurrencies that came before it notably Bitcoin and etherium. Much like etherium, It is a smart contract based system that can be used to run decentralized applications. But in a much more efficient way, the first generation started with Bitcoin. Bitcoin was created because everyone was asking the same.

Question, is it possible to create the centralized money a digital asset that you can send and receive that is scarce and tradable without any third party involved Satoshi Nakamoto answered these questions when he created bitcoin, we finally had a decentralized monetary system, which can transfer money from one person to another however, there was a problem with Bitcoin which is a problem with all first generation blockchains. They only allowed for Oh, Terry transactions. There was no way to add conditions to those transactions. These conditions would need extremely complicated programming. Something was required to make the process more seamless. That’s where the second generation comes in. It brought a programming language to the blockchain and suddenly money was programmable and smart contracts were born smart contracts help you exchange money properly shares or anything of value in a transparent.

And concert for you way while avoiding the services of a metal man metallic glitter ins ethereum is the clear standout of this generation, etherium showed the world how blockchain can evolved from simple payment system to something far more powerful etherium was created with the very serious purpose of revolutionising the financial system with smart contract technology. However, this generation had its own issues as it didn’t have a good response to skill ability. T the first decentralized application to go viral and capture the imagination of the etherium network participants was the collectible token known as crypto kitties during the bull market of 2017 crypto kitties caught fire with more than two million dollars worth of daily volume traded at the height of the kitty Mania at that point crypto kitties were responsible for 12% of all, aetherium transactions and single-handedly managed to put the entire.

Serum Network to a screeching halt further highlighting the scalability bottleneck of current platforms Additionally the governance system of these block cheese. We’re not really that well thought out a good example being the etherium and etherium classic split followed by Bitcoin and Bitcoin cash and most recently the controversial hash War induced Bitcoin cash and Bitcoin SV hard Fork is a classic example of bad governments this This is where the third generation comes in by combining the positive elements from the first two generations of blockchain what came out as a result was cardano the three elements that car Donna wanted to solve or scalability interoperability and sustainability what really sets cardano apart from the competition is the process by which it is being developed with more than 2,000 cryptocurrencies in existence and new ones popping up all the time. It’s hard to stay.

Now but cardano has many advantages over rival coins. So many that it appears destined to be one of the most dominant cryptocurrencies over the long term. You might be surprised to know that the brains behind card Otto is one of the cofounders of Etherium– Charles hoskinson. The initial design brief was can you build a Japanese version of aetherium, we realized that we could create something that was an intersection of Congress computation in compliance. You can use it on a cell phone. It’s very natural and very easy, and it’s actually a better. Then somebody would encounter with PayPal or credit card. We wanted to iterate the vole the etherium model as well as explore adding new cryptographic techniques. What really makes cardano remarkable is the sheer amount of care that goes into its upkeep. There are three organizations which work full-time to develop and take care of Cordon of the cardano foundation is a not-for-profit regulated entity. Their main function is to standardize protect and promote the cardano protocol technology. I ohk is a software research and development company have been contracted to build design and maintain Cardinal until 2020. Finally. We have a Virgo emergo is a Japanese company that develops supports and incubates Commercial Ventures who want to revolutionize their Industries using blockchain technology much of ioh case funding comes from a five-year contract with emergo these three organizations work in Synergy to make sure that

Donald Development is going on at a good Pace unlike most cryptocurrencies. Cardano didn’t start as a white paper instead the project started as a set of design principles engineering best practices and avenues for exploration the code that resulted from the team’s research was made open source and subject to peer review just as with any serious scientific Endeavor that’s unheard of among cryptocurrencies which too often consists of code car. Copied from other coins by a handful of anonymous developers cardano’s code by contrast was built completely from scratch. It’s built in a programming language called Haskell an advanced system in which code can be written more precisely reducing errors and making the platform more secure Ada is the digital currency which feels the cardano platform. Its primary motive is to provide quick and safe currency exchange and allow users to operate.

Smart contract and application seamlessly cardano uses proof of stake and which holding a turtle can skips you a stake in the network and the stakeholders receive rewards for validating the blocks and secure the network or Donna hopes to achieve sustainability by using an Innovative version of the proof of stake consensus mechanism called Ouroboros. This is a crucial part of the infrastructure that supports the Ada cryptocurrency and isn’t Major Innovation and blockchain Technology Ouroboros eliminates the need for an energy hungry proof-of-work protocol which stands as a barrier to block chain scaling up for much wider. Use Ouroboros is the first proof of stake protocol that has mathematically been shown to be provably secure level of security demonstrated by Ouroboros compares to that of Bitcoins blockchain, which has never been compromised One Way cardano improves on

Currency design just by separating its two main functions into two distinct layers one for the transfer of value and one for the storage of data limiting the duties of the settlement layer makes it more secure and preserves privacy for basic transactions that don’t require metadata having a separate control layer is better for cardano as a platform. It’s used for smart contracts decentralized applications and even as a foundation for Official coin offerings it allows the control layer to be optimized for these uses while ethereum single layer system must do double duty. Best of all the 2 layer design means each layer can be upgraded separately as needed in the way of soft Forks s cardano executes on its road map. The platform will gradually add in features. According to the roadmap. Cortana will be released in five phases. Byron was all about creating a bulletproof.

It’s the first layer of the cardano platform and the Heart of the system aka the cardano settlement layer that allows users to send and receive Aiden tokens. Shelley is focused on turning cardano into a fully decentralized and autonomous system starting with staking Staples and delegation goguen brings different computation layers that enables smart contracts for financial transactions such as hedging the X term deposits credit swaps. Ending as well as complex the Is that applications the features and fascial are focused on performance and scalability similar to BitTorrent? The system will gain more resources with every new user Voltaire is focused on sustainability and self Sovereign identity. There will be a treasury model and a mechanism to contribute to card on Oviya Improvement proposals one interesting aspect of the cardano project is quantum resistant signatures. This will protect funds Held on the cardano blockchain from being compromised using quantum computers quantum computers are major existential threat to cryptocurrencies. That’s because they have the capacity to break the cryptographic algorithms that are used in blockchain. They never really get much attention in the crypto sphere because it is widely assumed that the quantum technology is still far off. However, these computers may actually be a reality sooner than most people think. Fact the quantum resistance signatures aspect of the cardano project could actually end up being its biggest strength going forward first. It could become the backbone that aids in the adoption of cardano by institutional investors. That’s because for institutional investors looking to put money into crypto security is an absolute concerned with Quantum resistance businesses should also be more confident in developing their systems of the cardano blockchain. That’s because it offers an element of long-term sustainability in a few years Quantum resistance could very well be a key issue and on this basis alone businesses, especially those dealing with sensitive data can Leverage The cardano blockchain is the first blockchain project to be developed from a scientific philosophy and the only one to be designed and built by a global team of leading academics and Engineers her Dano is secured.

It has been developed the same scientific rigor applied to Mission critical systems such as Aerospace and banking a major innovation of Gerdau is that it will balance the needs of users with those of regulators and in doing so combine privacy with regulation the vision of cardano is that its new style of regulated Computing will bring greater Financial inclusion by providing open access for all to Fair Financial Services. Has if you made it to the end of this video, let me know in the comments if you’re bullish or bearish on cardano in 2019.