Cardano is a decentralized smart contract platform that would be powered by peer-reviewed academic research and capable of running both financial applications and decentralized applications. Established by a former Ethereum co-founder, Cardano aims to improve Ethereum by offering low-cost, secure, and scalable transactions. To improve the security of smart contracts, Cardano uses the Haskell programming language which has proven to be easier to formally audit and verify. Additionally, Cardano openly addresses the need for regulatory oversight while maintaining privacy and consumer protection through innovative software architecture.
What is the ADA token and its uses?
ADA is Cardano’s native cryptocurrency. It was launched on January 1, 2018 through an initial coin offering as a utility token and will have a total supply of 45 billion. It is currently the 8th most popular cryptocurrency based on market capitalization according to CoinGecko.
Following the opening of Shelley’s public testnet on June 9, 2020, any operator can set up a Cardano engagement pool in advance for mainnet engagement and delegation to launch in the summer of 2020.
Eventually, the ADA will allow users to send value between two parties, pay for goods or services, deposit funds on an exchange, or enter a request. ADA will also be used to boost transactions on the Cardano network.
Founder: Charles Hoskinson
Charles Hoskinson is a co-founder of Ethereum and founder of Ethereum Classic, with extensive experience working with smart contracts and the Haskell programming language. He is an outspoken critic of Ethereum and parted ways with the Ethereum team in 2016. This was likely due to ideological differences stemming from the team’s response to the 2016 DAO Hack. Hoskinson is now the CEO of Hong Kong Entry Exit ( IOHK), and have dedicated a great team of expert engineers and researchers to build Cardano from scratch.
Cardano – blockchain protocol development
Cardano aims to become the third generation blockchain, overcoming the problems with previous generations of blockchains, namely the lack of scalability, interoperability and sustainability. Cardano aims to develop its platform based on these 2 guiding principles:
- Peer review: Any science that guides the solutions to these problems goes through a peer review.
- High security code: Cardano aims to bring the same level of scientific rigor for mission critical systems such as aerospace to the development of your project.
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Cardano platform has the following key features:
- Cardano will be built in Haskell code. Haskell uses a math-based approach that results in a much more secure and reliable protocol.
- A formally verified Proof-of-Stake consensus called Ouroboros. It is the first provably secure blockchain protocol developed by the IOHK team and peer reviewed. It has advantages over traditional proof-of-work blockchains (for example, as used by Bitcoin) by requiring less compute resources (there will be no mining) and is therefore cheaper to run, but as secure as the algorithm most popular of Proof of Work. It also comes with a novel reward mechanism to prevent attacks like block retention and selfish mining.
- Recursive InterNetwork Architecture (RINA): Cardano is looking to build RINA to reduce the bandwidth required to communicate and broadcast data. idea is that RINA has fewer protocols but is able to work faster, while still offering transparency, privacy and scalability.
- protocol is aimed at protecting the privacy rights of users taking into account the needs of regulators. In doing so, Cardano is the first protocol to balance these requirements in a nuanced and effective way, pioneering a new approach to cryptocurrencies.
- Cardano will also be completely open source and patent-free.
Cardano platform is being built in 2 layers: a settlement layer and a computational layer. This gives the system flexibility during maintenance and allows upgrades using soft forks.
After completing the settlement layer that ADA will run, the separate computing layer will be created to handle smart contracts. Cardano will also run decentralized applications, or dapps, services that are not controlled by a single party, but rather operate on a blockchain.
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Advantages and disadvantages of Cardano?
Advantages of Cardano
Many smart contract users believe that Cardano holds the key to long-term secure development. This is due to the numerous attacks and vulnerabilities on platforms such as Ethereum. Cardano founder Charles Hoskinson has criticized Ethereum as a “rushed product” with vulnerabilities that led to famous hacks like DAO. This could be seen as a symptom of the flaws in Ethereum’s programming language, Solidity. Cardano improves this by allowing development with Haskell, which can be formally verified.
Cardano’s use of the proof-of-stake caral itself brings many advantages, such as less susceptibility to interference because nodes will be responsible for performance and thus eliminate the need for additional machines. In turn, less energy will be consumed, which is better for the environment.
Rewards are awarded based on the number of tokens held rather than the amount of computational power contributed, which is more fair.
deck’s 2-layer system allows each layer to be responsible for a full set of tasks. This means more potential for interoperability with different cryptocurrency platforms and is therefore more scalable compared to Ethereum.
Disadvantages of Cardano
Critics of Cardano have pointed to the project’s slow development and overly ideal goals. This can be risky for Cardano because it could be outmatched by more aggressive competitors, or the regulatory environment may change in the meantime.
Many of the features promised by the Cardano team are not yet available. So much of what is being said about how your ADA cryptocurrency would work remains theoretical.
What is the Daedalus wallet?
To store and use ADA, you must install Cardano’s Daédalus wallet. With the wallet you can send and receive ADA, as well as view your transaction history.
Daedalus wallet will also offer the following features:
- Unlimited Accounting – Manage any number of wallets with Cardano’s innovative hierarchical deterministic wallet implementation. This will give you more control over how your funds are organized. It also has powerful backup features to help you get your funds back at any time.
- Advanced security: Cardano will not retain your keys. y use the world’s most advanced cryptography to ensure security against attacks and offer passwords and spending seeds for all your accounts.
- Export to Paper Certificates – Wallets can be exported to paper certificates, giving users the option of placing funds in cold storage.
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Daedalus wallet is still a work in progress, features expected to be available soon include:
- Support for Bitcoin and Ethereum Classic.
- Gambling features that allow ADA holders to earn more ADA tokens.
- A mobile wallet for iOS and Android.
Website https://cardanofoundation.org/ IOHK Website https://iohk.io/ Ouroboros White Paper https://iohk.io/research/papers/#9BKRHCSI Blog https://cardanofoundation.org/blog /