What is the Cardano Cyptocurrency Coin
Cardano is an open-sourced, decentralized, proof of stake, layer-one blockchain. It boasts lightning-fast transactions and a growing ecosystem, which many in the space are taking notice of. There is so much market confidence in Cardano in 2022, that it’s experienced an over 25000% increase in total value locked this year as opposed to 2021.
“Total Value Locked represents the number of assets that are currently being staked in a specific protocol”.
An increase in ‘Total Value Locked’ is essentially a “vote of confidence” measure, showing wallet holders believe its future is more bullish than bearish. Conversely, A decrease in ‘Total Value Locked’ would portray a bearish market sentiment. 25000%, as you may have guessed, is off-the-charts bullish!
There are 3 entities which all work in conjunction to support development, promotion, and the commercial adoption of the Cardano Ecosystem. They include:
The Cardano Foundation
The governing body for the Cardano Blockchain. Its objective is to inform and educate policy-makers and citizens alike in an effort to promote favorable legislation to empower the growth of the Cardano Blockchain and the crypto revolution as a whole.
Input Output HK
The research and development arm of the Cardano Ecosystem. Input Output HK (IOHK) brings together the brightest minds of academia to advance blockchain research and broaden industry knowledge. Read more about IOHK here:
The official commercial arm of the Cardano Network. Emurgo works with developers and investment groups to bring products to market.
Products include the YOROI Wallet, a blockchain explorer called SEIZA, and various developer tools such as Supply Chain Traceability. These products use trustless automation to allow for streamlined compliance, auditability, and cooperation between multiple supply chain participants.
Who created the Cardano Blockchain
The ‘genius mind’ behind the Cardano Blockchain is the ‘never-at-a-loss-for-words’, yet un-assuming founder, Charles Hoskinson.
After a brief stint working with Vitalik Buterin on the Ethereum Project in 2015, Charles left to discover his own blockchain. It is said that he and Vitalik disagreed often and Charles became the sacrificial lamb. But, don’t feel bad for Charles, he didn’t leave empty-handed. In fact, Charles received 293,000 Ether Tokens which are said to be resting comfortably in a wallet owned and controlled by his secretary.
Charles immersed himself in fortuitous academic research, and deployed the use of engineering ‘best practices’, to build the Cardano Blockchain. You can read some of the research papers he and others in the IOHK Community have written here.
Hoskinsin is known for his epic rants on Youtube, donned in his oversized flannel shirts, staged in his minimalist office setting, with each rant starting something like this: “broadcasting live from sunny Colorado, always warm, always sunny, sometimes Colorado”.
He’s passionate, affable, supremely knowledgable, and has an affinity for thought-provoking quotes. Such as this:
It’s easy to see how he’s amassed 300,000 loyal subscribers.
Its safe to say Charles Hoskinson, the Cerebral, articulate, visionary, hold-nothing-back, former co-creator of the Ethereum Network, has an affinity for Math and engineering. Having attended the University of Colorado to study Analytic Number Theory (though it is not confirmed if he actually earned a degree) he has a mind for mathematical formulas and processes. Formally educated, though to a greater extent self-taught, Charles certainly knows his way around an Orthogonal Matrix.
While some in the Blockchain community cynically refer to Cardano as being ‘The Ethereum Killer’, one thing is for certain, Cardano has an uphill battle if that’s it’s sole intention. For now, the space is large enough, and growing larger by the day, for numerous layer-one solutions to provide value to the world.
What is Cardano named after
Hoskinson new he wanted to pay homage to a famous Mathematician, by naming his Blockchain after one. After a long search, he eventually settled on Cardano, after Girolamo Cardano. Girolamo Cardano was an Italian Physician and Mathematician who is said to have given the first clinical description of Typhus Fever, and whose book Ars Magna, was the cornerstone for the history of Algebra.
After naming the platform, he had to settle on a name for the platforms token, which of course would also be named after a famous Mathematician, this time, Augusta Ada King, Countess of Lovelace.
Ms. Lovelace lived during the 19th century and is known as the first computer programmer. Since 2009 her legacy is celebrated every October 15th to pay respect to the often-overlooked contributions women have made to math and science.
What is Cardano used for
Cardano, like Ethereum is open source, which means anyone who knows Cardano’s programming language ‘Haskell’ can build their own program on it. There are Decentralized Exchanges such as Sundaeswap, and soon to be released OceanX. These exchanges allow you to transact directly without the use of a “Central Authority” overseeing the transaction. You can earn a yield by lending, borrowing, and staking your coins on Sundaeswap or OceanX.
This is a great post about the difference between a Decentralized Exchange like Sundaeswap and a Centralized Exchange like Coinbase or Kraken.
How is Cardano different than Ethereum or Solana
Cardano considers itself the first ‘third-generation cryptocurrency’ whose aim it to fix the challenges its competitors Ethereum and Solana are experiencing. Ethereum, while it offers decentralization still suffers from scaling issues. High fees, and slow transactions have plagued the Ethereum Network. In fairness though, Ethereum 2.0 which should go live in 2022, looks to improve upon this. Solana, on the other hand is lightning fast, so scaling is not an issue, but lacks in decentralization. Cardano is improving both these issues.
How is Cardano fixing scaling and decentralization
- Proof of stake-The Cardano Blockchain uses an algorithm called Ouroboros which uses a proof of stake transaction process rather than proof of work, which is what Bitcoin is run on. Proof of Stake utilizes less nodes for verifying transactions by using ‘leader nodes’ whose job is to verify transactions from a group of nodes. This streamlines the process, enables faster processing of transactions, and cuts down on energy usage.
- RINA (Recursive Internetworked Architecture)- Created by one of the Internet’s ‘Founding Fathers’, John Day.
The core insight behind RINA is the observation of a simple recurring pattern in all of distributed computing. “Communicate this for me from here to over there” is a ‘what’, which is then followed by a bunch of common functions that are the ‘how’. Those ‘how’ functions relate to dividing the data stream up into datagrams and reassembling them. That can be done in any way the lower layer sees fit, subject to the contract it has with the upper layer.
- Cross chain transfers by using side chains. Side chains conduct transactions between two parties, off chain. This lowers the amount of energy expended on chain, and speeds up transactions. dcSpark is Cardano’s first side chain which enables Cardano’s ADA token to be wrapped and ported to the Ethereum Network.
Can Cardano compete with the Ethereum Network
Cardano and Ethereum both have their challenges, now and will in the future. Keeping the best and brightest programming minds engaged and committed to working on the Cardano project, or the Ethereum project for that matter, will be a ‘technology tug of war’.
New projects pop up, seemingly over night, and there is a finite amount of talent to build and support them. Ask the leaders of Facebook, or Google where they’re losing their programmers to, and 9 out of 10 would agree; It’s The Crypto Industry. And in some cases even the leaders are leaving, like this top Facebook Exec.
So, the challenge may not be can Cardano compete with Ethereum, or can Solana compete with Chainlink, instead it’s can Cardano compete with Cardano. Keeping good talent comes down to leadership, vision, and management. And, whichever company succeeds at these three aspects will “win the war of the coins”.
Where will the price of Cardano be in 5 years.
Cardano is betting BIG in Africa, really big! Africa is a continent where 2/3 of their citizens don’t have a bank account, aren’t able to validate their education credentials, and very few could ever prove they own a house, if they did. Enter The Cardano Blockchain, married with the Atala Prism Technology.
Charles believes Africa is a perfect place to disrupt the status quo, so much so that he has traveled there numerous times and met with the leaders of African Countries. They have convinced leadership to change the “Ask The Doctor” (A global digital healthcare platform) to switch from the Ethereum Blockchain to the Cardano Blockchain.
There are 1.37 billion people on the continent of Africa, if Charles is successful at handing out mobile phones and getting just 10% to use the Cardano Blockchain, that’s 137,000,000 people. There are a lot of fees that can be generated from that usage, not to mention the opportunity for a staggering amount of investment.
If all goes well in the ‘Sahara’ then Cardano’s huge bet will pay off with massive dividends, and I see no reason why its coin isn’t trading at $30 in 5 years.
What are your thoughts on the Cardano Ecosystem?
Jim started his real estate investing career in 2005 and enjoyed 3 good years before the Financial Crash of 2008. Jim’s been a steady equities investor for over 20 years, but really didn’t realize the power of dividends until 2015. Since then, he’s adopted an ‘if it doesn’t produce income, its not worth investing in” motto. Jim works in a sales and marketing position and has knowledge in SEO, Blog Writing, Website building, and growing a digital brand. If you’re looking to build your online presence, feel free to reach out to Jim.