Today we will introduce you to Cardano. Cardano will be a technical platform that can run financial applications currently used daily by individuals, companies and governments. This platform supports smart contracts that are used in mutual agreements. Cardano wants to keep a good balance between the needs of the users and the regulations (e.g. regarding privacy). We take a closer look at this coin with the aim of giving you an objective view in a way that everyone can understand. This article is not meant for promotion.
Cardano is an incredibly well-known platform and if you own cryptocurrencies then you have undoubtedly heard about Cardano (ADA). Hearing about it is one thing, but actually understanding what it’s all about then is another. At least the team knows for sure, and that is that Cardano is the only one of its kind.
Cardano is an open-source smart contract platform that distinguishes itself by being built on scientific research, with an updated Proof-of-Stake algorithm, among other things, and the platform always keeps laws and regulations in mind. In fact, the team wants the platform to scale easily and meet the needs of traditional finance to make adoption easier for use in everyday financial activities.
Cardano is built in several layers, we will go into more detail about this after the video below.
As mentioned, Cardano uses an updated version of Proof-of-Stake called “Ouroboros. According to the team, this is a huge innovation in blockchain technology and getting agreement between nodes. Proof-of-Stake is at all a lot more efficient and friendly than Proof-of-Work which takes a lot of time and power. This is the first algorithm that can actually be considered ”safe” according to mathematical science. If you are interested in learning more about this technical aspect, watch this video.
Daedalus is the official wallet of Cardano. In this wallet you can receive ADA, send ADA, view your transaction history and is supposedly very secure. The wallet is fully encrypted so others cannot access your private keys or password. Ada redemption is built into the wallet so encrypted and non-encrypted redemption certificates are also supported. There are also plans to support other cryptocurrencies in the future, support iOS and Android and allow users to participate in the future strike process.
The team consists of three organizations: The Cardano Foundation, Emurgo and IOHK.
The Cardano Foundation’s goal is to standardize, protect and promote the protocol. They look at regulations, the ecosystem, advances in technology across the industry, education for community members and possible other companies to join.
Emurgo instead focuses on finding companies and start-ups that are interested in using the protocol. They invest in these companies and/or help with the developments to make it happen.
IOHK helps develop the platform and aims to provide innovations and financial services to the three billion people in the world who do not yet have access to them.
Personally, I see tremendous potential in both the platform (the technology) and the likelihood of success. There is a good balance between innovation and listening to the wishes of the traditional financial industry. In addition, regulations surrounding the technology and cryptocurrencies will become increasingly important in the coming years. The fact that this is already being taken into account will ensure that the team will not be faced with any surprises.
With the staking (and smart contracts) going live soon, it also becomes a lot more interesting for (smaller) holders to buy and hold ADA.
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