Crypto of the year Is Cardano destined to change the world

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Cardano: a rising cryptocurrency that wants to change the world

Can Cardano become the new Bitcoin and Ethereum, all in one?

Author: Stan Schroeder / Source: Mashable via FeedBox

On Oct. 1, 2020, an unusual event caused a collective gasp in the world of cryptocurrencies. A little known cryptocurrency called Cardano — or ADA, as its corresponding coin is called — showed up on crypto-tracking sites with a market cap of about $600 million.

At the time, it was unusual to see a new coin appear out of thin air with such a high market cap. But Cardano is different. It’s an incredibly ambitious product with a strong team and tons of buzz. By year’s end, the market cap of Cardano was more than $10 billion, despite the fact that the project was in a fairly early stage. In January, it briefly soared to more than $33 billion before receding back to roughly $10 billion as the overall cryptocurrency market shrunk. It is currently the sixth largest cryptocurrency by market cap, behind Bitcoin, Ethereum, Ripple, Bitcoin Cash, and Litecoin.

So what makes the cryptocurrency scene so bullish about Cardano?

Cardano claims it will solve most of the issues that plague well-established cryptocurrencies such as Bitcoin and Ethereum. Bitcoin isn’t flexible enough, and transactions on its network are currently slow and expensive due to protocol limitations and overwhelming demand. Ethereum is far more flexible, but — as prominent Ethereum developer Vlad Zamfir recently put it — it’s not safe or scalable yet.

But Cardano, at least so it claims, has very secure code, peer-reviewed by experts and scientists. It claims to be fast and scalable, thanks to its Ouroboros proof-of-stake technology. It’s written in Haskell, a programming language that’s typically used in critical systems in the banking and defense industries. It provides interoperability between existing cryptocurrencies. And finally, it offers long-term sustainability, by using a sort of cryptocoin treasury that can fund projects long-term.

Cardano has a very strong developer team. Its leader is Charles Hoskinson, who studied Analytic Number Theory at the Metropolitan State University of Denver and University of Colorado at Boulder before dropping out to co-found Ethereum, among other projects. He now travels around the world to speak and educate on crypto and promote Cardano; as he moved between time zones, it took me two weeks to align with him and do a phone interview.

“We didn’t actually do any marketing,” Hoskinson says of the cryptocurrency’s early days. “When Cardano started trading on Bittrex, it was the first time the rest of the world has actually seen it; the first time they kinda saw the vision, which was this idea of a third generation cryptocurrency, and all this things that we’ve set up, the research team that we set up, this enormous team we’ve put together. They saw the code, they saw all the progress, and they said holy moly, we missed this.”

A cryptocurrency built from scratch

Hoskinson refers to Bitcoin and Ethereum as the first- and second-generation cryptocurrencies. They were the first of their kind, and it was impossible for their development teams to prepare for all potential problems in advance. Cardano has the benefit of knowing their history.

“Every component of our system has been built from scratch,” Hoskinson says. And since all of it has been peer-reviewed by experts and scientists, he claims, it should be more reliable and secure than the code of most other cryptocurrencies. This is important. Parity, a popular wallet for Ethereum, suffered a hack in which unknown actors made away with $32 million, as well as a bug that froze more than $150 million in digital assets, due to errors in its code.

Hoskinson isn’t just making claims out of thin air. Cryptomiso, a site that ranks cryptocurrencies according to Github commits — changes in a project’s code — currently ranks Cardano as the second most active project. And this code has seen actual usage: Cardano’s Oroborous proof-of-stake algorithm is live, and its Daedalus wallet is live.

“You pay a higher upfront fee to do things properly, once you’ve done that, what happens is you get acceleration, and you don’t have to backtrack, because you’ve done it right the first time.”

But Cardano consists of two layers: A settlement layer, which is similar to Bitcoin, and essentially only takes care of who has sent how much ADA to whom. The other is the control layer, which is similar to Ethereum and enables applications to run on the platform. That part of the project is still undergoing testing.

While reading up on Cardano, I’ve kept finding similar conclusions: It’s very promising, but it’s unclear whether it’s moving fast enough, due to all the academic rigor involved in its development.

“We’re starting very far behind everybody. (…) A lot of the work that we did in 2020 and all throughout 2020 and we’re still doing now is about building up to a point where we catch up completely with all of our competitors,” Hoskinson says. “The difference between us and a lot of our competitors, is that every time we get involved in something, we write a paper. And the people reviewing these things are cryptographers, experts from universities such as…

IOHK founder Charles Hoskinson discusses the future of Cardano

IOHK founder Charles Hoskinson discussed recent developments around Cardano during an event held in celebration of the project’s secondary anniversary. His long term vision: Cardano will disrupt centralized governance.

Shelley to get an incentivized testnet before mainnet launch

Cardano , an ambitious research-oriented blockchain, has slowly been transitioning into a new era which will transition the project to proof-of-stake (PoS) consensus. However, the launch of Shelley has been plagued with problems and delays. However, Charles Hoskinson , the co-founder and CEO of Input-Output Hong Kong (IOHK) , the company behind Cardano, responded that the slow development was due to the company’s thorough and detailed approach to building Cardano.

The project celebrated its second anniversary on Sept. 28. Hoskinson, one of the co-founders of Ethereum , hosted a Cardano meetup in Plovdiv, Bulgaria, and used the opportunity to go over Cardano’s history and highlight the project’s plans for the future.

Hoskinson’s lengthy introduction speech touched on the topic of Shelley, the next era of Cardano’s development which will transition the network to a proof-of-stake protocol. Byron, the first development phase of Cardano, focused on the network’s basic needs and presented the first incarnation of its “Ouroboros” PoS consensus.

Shelley, whose testnet went live in the second half of June, is nowhere to be seen. Hoskinson said that a new, incentivized testnet will be launched in November, as the company was still not sure about the system’s functionality.

“If you’re going to decentralize the system and hand it over to people you need to build up a critical mass of people who are capable of running the system,” he said.

Hoskinson believes that there are two ways of doing this. The first, he explained, is forking the network, which isn’t the way anybody is willing to go. The second, longer, and harder way is to test the system even further.

“Or you can go ahead and build a safe sandbox,” he added.

Such a sandbox will allow knowledge and domain expertise to build up, which is due to “bubble over” at some point, he explained. When this knowledge hits a critical threshold the mainnet can launch, he argued.

While Shelley has yet again been delayed until the first quarter of 2020, there is a silver lining. The new incentivized testnet will act exactly the same as the mainnet. Users will be able to register, delegate, stake, and earn ADA on the testnet. All of the ADA earned in the testnet will be rolled over to the mainnet once it launches.

Cardano is a “third-generation” blockchain platform. However, unlike other blockchain projects, there isn’t a clear end to it. Hoskinson said Cardano is more of a social project than a blockchain project, as it’s only done when there are thousands of independent stake pools, not when the coding stops. The incentivized testnet is supposed to create an environment where this can happen.

Cardano aims to be the first agnostic blockchain standard for transactions

Once Shelley is running Cardano will focus on Goguen, the next iteration of the network. While Shelley will bring about a practical solution to staking, Goguen will focus on more philosophical issues.

Hoskinson said that smart contracts, although the most popular feature of blockchain networks, fail to address all of the elements of a transaction.

“Ethereum made everyone focus on smart contracts, instead of other aspects of transactions,” he said.

He said that the metadata attached to transactions—who sent it, where was it sent from, where was it sent to, when was it sent, etc.—is arguably more important than the transaction itself. The value of it matters less than the data it provides to the blockchain, which something neither Bitcoin nor Ethereum have taken into consideration.

Cardano aims to fix this, Hoskinson said, adding that it has the potential to become the most useful cryptocurrency in the market. Goguen will enable users to embed all kinds of data into a transaction, which could change the way we see everything from money to real-estate, he asserted.

To do that, the Cardano team is focusing an enormous amount of energy into fundamental research, defining the very basics of crypto and answering questions from ‘what is a blockchain’ and coming up with an airtight definition for a transaction. This is supposed to enable the network to become an “agnostic” blockchain standard for transactions and scale.

The more Cardano progresses, the more ambitious its claims become. In an interview earlier this year, Hoskinson said that Cardano will emerge from 2020 “100 times more decentralized than Bitcoin.” In his latest speech, though, Hoskinson claimed Shelley will ultimately bring about decentralization 250 times more than that of Bitcoin.

Many challenges still remain

The ambitious goals Cardano has set are certainly admirable. However, with this ambition comes obstacles.

Hoskinson discussed some of the problems Cardano has had to deal with, most of them focused on how to keep the good and get rid of the bad things that come with decentralization. While the company managed to solve the problems that have been plaguing Bitcoin and Ethereum, such as issues around block size signature schemes, it still faces a serious challenge—governance.

He admitted that IOHK is still working on the solution to this problem. Enabling users to make difficult and philosophical decisions on important issues such as transaction reversals, fund freezes, and building “auditable backdoors” are the company’s current priorities.

There are mechanisms already set in place that will enable the creation of decentralized and democratic voting. While most of the tools are already there, the incentives to use them aren’t, Hoskinson said.

A possible solution to this would be creating a treasury account on Cardano and enabling users to vote on how the funds from the account will be spent. However, this system will roll out only after Goguen, Basho, and the remainder of Shelley go live, which could take years if the company doesn’t speed up its development.

Nonetheless, Hoskinson’s undying optimism ended the speech on a light note. None of these challenges have shaken his belief in Cardano. He continued by saying that the point of the crypto industry was to “provide a toolbox and a collection of visions of where we can take the world” and collectively decide on how to solve problems without centralized governance.

Cardano, he said, is meant to be a model on how to do this.

Is This the Year Crypto Goes Public?

Тему создал/а SCB1234, January 24 in Crypto World

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    Crypto Enthusiast – “As long as ADA ranks above Tron, there is hope for this world”, Cardano’s Hoskinson Concurs

    A Crypto enthusiast made the above statement. While the meaning of the statement is not clear, it could mean that Cardano (ADA) staying above Tron (TRX) in the cryptocurrency ranking could be much better for the crypto space.

    Cardano’s Charles Hoskinson also hopped on the thread to throw a subtle shade at Tron by saying, “The dog barks; the caravan moves on” which another user also admitted he might be shading Justin, “Lol… I know for whom you are telling dog.. just baked sun haha”

    Tron (TRX) has been the 10th largest cryptocurrency by market capitalization for a while now after tasting the 8th and 9th spots at the beginning of the year. Shortly after, it settled at the 10th spot and has been there ever since before ADA replaced it a few days ago.

    ADA made an impressive move just last week gaining significant price surge. The surge has led to the market cap growth which made it overthrow TRX. ADA was given an “A” rating as a result of this growth by the Fundamental Crypto Asset Score (FCAS).

    This sudden surge is tied to Cardano’s recent upgrade to Cardano 1.5 . This upgrade significantly increased interest in ADA, prompting the price surge which led to the displacement.

    It is surprising that despite Tron’s popularity and the active pursuit of same by the CEO Justin Sun, TRX has not been able to make any significant move up the ranking ladder. A recent report says thousands of Sun’s 1 million Twitter followers are bots, which may explain why the popularity isn’t yielding many positive results.

    The Securities and Exchange Commission had earlier frowned at Sun’s way of publicity, saying he does not use innovation but rather a public campaign to get followers. Cardano, on the other hand, has been working on its upgrade which has finally paid off.

    This may just be the beginning of the journey for Cardano as the company could be working on other projects quietly to make its project more useful to users. The gap in the market cap isn’t so large at press time though and Tron may reclaim its spot. However, this is already an indication that ADA may be heading high.

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    Currently, the top ten cryptocurrencies are in the red except for EOS but anything is possible when the market turns green so something interesting may be happening. ADA has crashed significantly from its huge gains to trade at $0.06 as against the $0.5 recorded two days ago. Will TRX take back its position from ADA or it is out of the elite top ten for good?

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    The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

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