Cardano ($ADA) combines a store of value with low transaction fees, fast person-to-person transactions, and Ethereum-like smart contracts all in the same coin (1). The CEO of Cardano started at Ethereum as a lead engineer (2). He identified problems over time with Ethereum and has moved onto the Cardano project. The Cardano team developed a new method of Proof of Stake (PoS) that addresses those problems.
- The CEO of Cardano started as a lead engineer at Etherium
- The Oroborous (Proof of Stake) protocol is the only Proof of Stake protocol to be peer-reviewed and mathematically proven to be secure
- Weekly technical reports and full transparency into the team’s progress
- A wallet is currently available
- There are plans for smart phone wallets in the near-future
- A debit card that can be directly linked to ADA accounts is currently being developed
- There is a base fee for every transaction
- Some of the applications are still being developed
Cardano is not mineable in the traditional sense. Cardano is a PoS (Proof of Stake) coin, which solves the enormous and exponential energy consumption problems of Proof of Work coins, such as Bitcoin. Proof of Stake chooses a random node on the network to generate a new block, with a probability proportional to the amount of coins being held in wallets attached to that node. All transaction fees within a certain period of time (called an ‘epoch’) are awarded to the creators of the previous blocks.
Cardano implements a base fee to every transaction. At the time of this writing, the fee is 0.155381 $ADA. This is a common solution that prevents DDoS attacks (thousands of tiny transactions) from causing network problems by adding a small cost to very small transactions.
Ouroboros is the name of the Proof of Stake protocol that Cardano is built upon. This protocol is the first to have been peer-reviewed by many academics, and is the first to have been mathematically proven to be secure (4). There have been many other currencies that have tried to use the Proof of Stake algorithm, but none of them have been mathematically proven to be secure. The built-in voting system is available to any stakeholder when changes regarding the networks are to be voted on. A stakeholder is anyone holding an ADA coin.
Cardano’s roadmap is very granular, with individual tasks assigned to individual members of the team. Progress reports as well as screenshots document each item’s progress. The roadmap is linked below. Cardano provides a weekly technical report, access to their codebase, and full transparency into their progress (2). There are also many peer-reviewed whitepapers on their website showcasing the benefits and potential of the platform (3).
Cardano has already developed a wallet for their currency called the Daedalus wallet (link below). The wallet uses the strongest cryptography available today, with an unlimited number of wallets managed. While future support is planned for other currencies, it is currently only used for $ADA. The wallet also includes configurable levels of transaction assurance, allowing users to choose when to consider transactions irreversible. Future plans include an Android and iOS wallet, Ethereum Classic and Bitcoin support, staking, in order to earn more of the currency as a stakeholder, and an application store with community applications and support for virtually any other cryptocurrency.
Cardano is also developing a pin and chip debit card that will be directly linked to your ADA account, with integration to your Daedalus wallet so you can view all transactions. Cardano also has plans in the near-future to launch ATMs, as well as debit cards, throughout Japan in 2018 (5)
Additional Cardano Resources:
Website: https:// www.cardanohub.org/en/home/
Transaction Fees: https://cardanodocs.com/cardano/transaction-fees/
Philosophy Paper: https://whycardano.com/
Technical Explanation Video: https://www.youtube.com/watch?v=Ja9D0kpksxw
CEO TED Talk: https://youtu.be/SENKLL7VQtc
$ADA on Reddit: https://www.reddit.com/r/cardano
If you would like to talk about Cardano, or any other cryptocurrencies, join us on our discord! https://discord.gg/Hr3EUH9
Contributed by Discord User: @theGMann#2502.