Cardano is a blockchain platform for developing decentralized applications that allow smart contracts. However, unlike Ethereum and other smart contract-oriented platforms, Cardano is the first blockchain built on Haskell code.
Another nuance of Cardano is the fact that it’s the first decentralized platform created based on a scientific philosophy and research, or at least this is what the developers claim. When building the platform, the Cardano team considered all the results of numerous scientific studies, which allowed them to apply the best achievements in the field of cryptography and blockchain. This helped them build a protocol with the most complex functions.
Cardano has its own algorithm, called Ouroboros, which operates on the principle of Proof-of-Stake (PoS). According to developers, Ouroboros is the first protocol that is proven to be totally secure.
The blockchain platform has a multilevel control mechanism that includes:
A settlement layer for the cryptocurrency called ADA;
A control layer for smart contracts.
According to the developers, Cardano will not compete with Ethereum since it is a third-generation blockchain, while Ethereum is only a second-generation blockchain.
The Team behind Cardano
The Cardano team is not just about a group of talented people, but an entire international community consisting of three organizations: Cardano Foundation, IOHK, and Emurgo. Each of these organizations fulfills its task and contributes to the development of the project. Here is a short intro for each of the group:
Cardano Foundation
The Cardano Foundation, based in Switzerland, serves as a supervisory and educational body. Its goal is to standardize, protect, and promote Cardano technology, including applications based on it. It also interacts with government regulators and forms partnerships with other organizations and projects.
IOHK
IOHK is a technology company founded in 2015 by Charles Hoskinson and Jeremy Wood. Charles Hoskinson is a prominent person in the crypto space – he co-founded Ethereum but left the project before it was launched. The goal of IOHK is directly related to the technological development of the Cardano platform. The company has a contract for Cardano until 2020.
Emurgo
Emurgo, located on the Isle of Man, is responsible for the development of decentralized applications based on Cardano. The company also conducts commercial activities on behalf of the project.
After setting the overall goals of the project, the creators launched the initial coin offering (ICO), which was held from 2015 to January 2017. With the help of the ICO, the Cardano project collected $62 million.
Cardano Use Cases
A year after the ICO ended, Cardano found its first use case, which is about to happen. Greek national research and education network GRNET has agreed on a partnership with IOHK to create a blockchain-based platform to register and verify student diplomas and qualifications. The project is currently at the experimental stage. As of today, three Greek universities agreed to take part in the pilot: the Aristotle University of Thessaloniki, Athens University of Economics and Business, and the Democritus University of Thrace. More institutions are expected to join soon.
In the future, Cardano is determined to promote its “control layer” in complex systems like gaming and gambling markets. However, the possibilities of a third-generation smart contract system like Cardano are applicable in many other areas, with the financial industry in the first place.
As a third-generation smart contract blockchain system, Cardano is expected to reach much recognition in various markets.
ADA – the token of Cardano
Cardano’s token is called ADA and is currently the fifth largest cryptocurrency behind Bitcoin, Ethereum, Ripple, and Bitcoin Cash. ADA has had an impressive evolution – we’ll discuss it below. Today, Cardano’s total market cap is $16 billion.
As mentioned above, ADA mining occurs based on a PoS algorithm, suggesting that the block reward is randomly accrued among coin holders. Those who have more coins in the account enjoy higher chances of getting a reward. When it comes to the security level, Cardano is often compared to Bitcoin, and we know that the latter has never been hacked.
The total number of coins is capped at 45 billion ADA, including:
About 57.6% sold at the ICO;
About 11.5% is distributed between Cardano Foundation, IOHK, and
The remaining approximately 30.9% will be issued to support the operation of the Ouroboros PoS protocol and will be distributed among the coin holders.
Cardano has its own ADA wallet called Daedalus. It is anticipated to run decentralized applications based on Cardano. Daedalus is a hierarchical, deterministic, multi-platform, and highly secured wallet. It is easy to install (currently available on MacOS and Windows), and it allows you to view everything and even search for transactions.
Crypto traders can buy ADA coins on Bittrex, Binance, UPbit, and Coinnest. Besides, one can trade ADA futures on BitMex.
ADA Price Evolution
ADA has demonstrated an astonishing price surge from December 2017 to January this year. In November last year, ADA was traded at $0.10. It had an impressive three-day rally from December 14, increasing from $0.13 to $.058. Soon it had a second sharp uptrend, peaking on January 4, 2018, at $1.32 with a total market cap of over $34 billion.
Cardano on coinrate.com
Currently, ADA has lost more than half of its peak value, trading at around $0.61. However, it’s not because there was something wrong with the project – the whole crypto market has been bearish for the past few days because of uncertainties related to Bitcoin, as there are rumors that South Korea, one of the biggest players in the crypto market, might tighten Bitcoin trading within the country’s borders.
General Predictions for ADA
Some crypto market participants expect Cardano to end this year in the top three largest cryptocurrencies. Well, this forecast is not that irrational. For this, Cardano has to triple or quadruple its value and compete with Bitcoin Cash and Ripple, the latter being the blockchain system of choice for many banking institutions.
Now the project is only at an intermediate stage of development. The launch of the finished beta version of the product is scheduled for the first quarter of 2018, after which the team will work on the long-term scalability of the network. During this period, every positive news, event or update related to Cardano will have a substantial impact on ADA’s bullish trend.
The Final Note
ADA’s price evolution is quite sensitive to any update in the development of the project. Each new improvement pushes the rate up exponentially. The publication of the updated roadmap in December last year resulted in a 20% daily gain. There are solid reasons to believe that the project has enormous potential, and its token’s rate at the moment is only at the beginning. Despite being quite young, ADA could already push through the top 5.
Some of the reasons that favor Cardano refer to its advanced security, smart contract features, convenience & speed, the ability to update without hard forks, and a professional team among others.
Cardano should become part of investors’ portfolios. The project has a bright future, and there is much room for growth.
Written by Anatol Antonovici
From:https://blog.iqoption.com/en/what-is-cardano-does-it-have-potential/?utm_source=email&utm_medium=2301&utm_campaign=Cardano
