Cardano (ADA) is a blockchain platform (similar to Ethereum), which currently still acts as the basis for trading in the crypto currency “ADA”, but for which much higher volumes are planned in the near future.
Based on the scientific investigation of a cryptographic system and taking into account the deficits of older solutions, a cryptographic platform combining performance, security and functionality will be created in the coming years.
From the viewpoint of the superficial observer, Cardano is simply another platform that serves as the basis for the crypto currency ADA.
Cardano has been tradable since October 2017 and acts as a voucher, i.e. it is used like a voucher in exchange for services and goods. Cardano is backed by three companies and institutions: IOHK (Input Output Hong Kong) by former Ethereum co-developer Charles Hoskinson, the Swiss Cardano Foundation and Emurgo, a Japanese incubator in the cryptosector.
This powerful alliance has set itself the goal of developing and expanding Cardano.
According to its own statement, Cardano should become a (or rather the) third generation crypto currency, after Bitcoin and Ethereum.
How does Cardano work?
The technical basis of Cardano is Ouroboros, the system’s blockchain algorithm. (Ouroboros is the name of a symbol in occidental mysticism; a snake that bites into its own tail and thus forms a closed circle.)
Ouroboros is a Proof of Stake algorithm. This means that new blocks are created by the node of the network on which the highest stake lies in wallets. Of course, this would create an oligarchy (rule of a few) of individual, particularly financially strong nodes.
This is why the developers have refined the procedure for Cardano: they define the stake as the sum of the ADA values on a node divided by the total amount of ADA at all. This results in a number between 0 and 1 for the stake for each node (only those nodes on which ADA really lies are decisive, i.e. for which the stake is really greater than 0, the so-called stake holders). The sum of all stakes then always results in 1 and the list of all these values forms a probability distribution.
The algorithm then randomly selects a candidate from the stake holders, whereby the probability of the choice corresponds to the value of its stake. This candidate then becomes the creator of a new block.
What does Cardano want to achieve?
At first sight, the plans for the further expansion of Cardano are reminiscent of Ethereum itself: In an entire crypto ecosystem, smart contracts and decentralized apps (dApps) are to be implemented on the blockchain in addition to the classic function as currency.
The target user group ranges from individual users to large banks and companies; and the system should even be equipped for payment transactions by states, central banks and international organizations.
In order to achieve these ambitious goals, Cardano is trying to distinguish itself from other crypto currencies with a number of innovations.
For example, the developers claim that Cardano is the first cryptosystem to be developed on a fundamentally scientific basis: Functionality and performance are constantly checked and further developed by a peer group of experienced developers and researchers from the cryptoscene.
The main task here is to identify, analyse and avoid the large deficits and shortcomings of earlier systems at Cardano. The focus here is also on adapting the currency to the needs of large organizations. This means two things: On the one hand, the security of payment transactions must be maximized and guaranteed at a high level, because loss, theft or erroneous entries are not an option for the expected transaction amounts. On the other hand, the anonymous aspect of the crypto currency must also be reassessed and regulated, since public institutions in particular may have little interest in a means of payment that is potentially suitable for money laundering or other illegal activities. By 2020 at the latest, Cardano’s developers have announced the full expansion of their system.
Cardano’s fundamental orientation places this new system close to existing crypto currencies.
From a technical point of view, the final result should resemble Ethereum, with smart contracts and other active elements on the blockchain. Also, many Cardano developers seem to come from the Ethereum environment.
With regard to the target group, however, it will be easier to think of role models such as Ripple or OmiseGO, and banks and companies are already showing great interest in the system. However, the newcomer seems to have a bigger vision.
Not only money transfers between banks, but also any amount of money should be transferable between any actors. The theoretical and technical basis is there, and Cardano can be trusted for the future to completely redesign the crypto currency principle from scratch and to establish it on a new, previously unknown level. Whether Cardano’s promises will also be fulfilled by future developments, however, will have to be seen in the coming years. The Cardano roadmap can be viewed here: Cardano Roadmap
Cardano: A Market Overview
Cardano has been trading for 15 months (1 years) now. According to our records, it started trading on Sunday, October 1st 2017, for a first price of $0.0217.
What was the highest Cardano price in USD?
Cardano’s all time high was $1.15. Right now, Cardano is priced at (view the price tag below), 96.19% lower than its all time high.