What is Cardano?
Cardano (ADA), co-founded by the former CEO of Ethereum, with the popular nickname “Ethereum killer”, naturally enters the crypto radar. The link with Ethereum does not come out of the blue, as Cardano’s blockchain also uses smart contracts and decentralized apps (dApps).
However, Ethereum is a second-generation blockchain, with Cardano already part of the third-generation blockchain technology. First-generation blockchain focused on sending decentralized money. The second generation added digital contracts to add more conditions to a transaction for more control. The third generation, to which Cardano belongs, focuses on scalability, interoperability and sustainability.
Cardano is the first blockchain platform to use a source code tested for bugs and vulnerabilities by a large scientific network. Cardano uses the Proof-of-Stake (PoS) model to verify blocks; this contrasts Bitcoin, which works on a blockchain according to the Proof-of-Work principle. Both models aim to solve a block and create a new block in the blockchain. Where Proof-of-Work (PoW) assigns responsibility based on brute, energy-guzzling computing power, PoS assigns the creation of a block found on power (how much ADA someone has). What also makes this project special is that there is a plan for a democratic voting system in which users can vote to have a finger in the pie regarding the development and, therefore, future of Cardano.
|Proof of stake
Features of Cardano and the technology behind it
Unlike the descriptions with other cryptocurrencies, the features of Cardano and the technology behind Cardano have been merged. This is because the most interesting parts of ADA are technological.
Yes, it is quite a mouthful, but in short, it means that a network of scientists and researchers ensures that new protocols for ADA are first extensively tested, utilizing a scientific research method, before actual implementation is considered.
Cardano chooses to make the reward depend on how many ADA tokens you already have. Cardano’s PoS model would also be the only model with mathematically proven safety and, like the development of the technology, relies on the peer-review principle described earlier. Safe much?
Democratic voting system
Looking to the future, Cardano offers a democratic voting system to determine the direction of development. Users may vote for upgrades, updates, and modifications maintained in a library of suggested technology features.
DApps and Smart Contracts
Cardano, like NEO, also works with dApps and smart contracts. dApps are not owned, cannot be closed and have no ‘downtime’. They run decentralized on Cardano’s blockchain. Third parties may also develop these dApps. The aforementioned smart contracts are a specific form of dApp. These smart contracts keep the so-called metadata of a transaction. Unlike sender, recipient, quantity and time, this data is not crucial for simple marketing. Data in the Smart Contract may contain additional conditions, such as coordinates for tracking and tracing a physical shipment.