Overview of Cardano
Sometimes referred to as the “Ethereum Killer”, Cardano has risen to sit amongst the top 10 coins on coinmarketcap, in the last few months. Just like Ethereum, Cardano allows the creation of smart contracts. In addition to being a development platform, the project has a cryptocurrency; ADA.
Cardano is not the first project to build smart contracts, neither are they the only players in the industry. So, what really sets this coin apart? What are they all about?
First, they are the first blockchain project that claims to have been created on pure scientific philosophy and peer-reviewed academic research. Putting this in perspective, while most blockchain projects have one whitepaper which outlines their tech and roadmap, Cardano has a whitepaper and 5 other peer-reviewed scientific papers on blockchain’s technology. Sounds interesting, right? More like a bunch of geeks coming together, to save the day.
Bonus Tip #1: ADA is the cryptocurrency behind Cardano, and in other to use/store ADA, you must get its Daedalus wallet. This doesn’t really matter if you have plans to only trade on exchanges and use hardware wallets.
How is Cardano Different?
The team comprises of international researches and engineers, and is currently led by former Ethereum CEO, Charles Hoskinson. For the team, Cardano is trying to find the right balance between regulators (because they must come knocking one day), and the end users who value their privacy. To achieve this, the platform is being built on a layered architecture that allows for varying levels of security and privacy.
Bonus Tip #2: The two layers of Cardano architecture are the Cardano Settlement Layer (CSL), and the Cardano Computation Later (CCL).
Another important feature to note about Cardano is the fact that the platform uses Haskell – a very robust, industrial-strength programming language with high degree of fault tolerance. We’ve seen newer innovations knock out existing and older techs throughout history. And even right now, some Cardano enthusiasts have started referring to it as the “Ethereum Killer”. Haskell will help the project stay relevant in the coming years and still give room for flexibility and scalability.
You may have come across terms like proof-of-work (PoW), proof-of-stake (PoS), and minting in the crypto space. Each of these terms mean different things and each concept offers its own advantages. At the bottom of it all, they are algorithms. While PoW requires miners and physical computers to provide computing power, PoS is a greener alternative that requires no energy. Sadly, PoS systems are flawed because an individual or group of individuals with enormous stakes can double spend and manipulate the network.
Cardano has a unique PoS algorithm called Ouroboros that appears to solve this problem. In addition to eliminating the need for secured but power-hungry PoW cryptography, Ouroboros has been mathematically proven to be as secured as the blockchain of Bitcoin.
Cardano has a great roadmap, and an amazing team to back up. It is only natural to expect this project to thrive in the coming months and years.