If you are live in the cryptocurrency space, then Cardona (ADA) is one coin that must have surely caught your attention. This coin came from nowhere to be among the top 10 cryptos in the coin market cap. Released in Oct. 2017 this coin beat litecoin’s 5th position within a few weeks and finally settled at 8th position as at the time of this article. ADA barely a year old is robbing shoulders with cryptos that have been there for ages. This is one reason we decided to review this crypto to find out what makes it this spectacular. I assure you, this is also spectacularly presented. Enjoy…
The process of analysing any given coin in the crypto ecosystem will be better understood when initiated from the coin’s background, how it came about, what it stands for and the team behind it; as this will give us a better understanding of what we have on the table.
It is in this vein that we start our Cardano review with a quick overview of its founder’s background and affiliation with Cryptocurrencies.
Cardano’s Founder — Charles Hoskinson (Who Is He?)
Cardano was founded by Charles Hoskinson who is widely referred to as one of the earliest experts in the world of Cryptocurrencies. His public image has however been subject to debates with some backing his conducts as ethical and others deeming them unethical.
All things being equal, there is no taking away the fact that he has contributed immensely to the growth of Blockchain technology, and has been involved in several groundbreaking crypto projects – some of which are still operational.
His biography is easily accessible online. Below is a quick one for your perusal:
Hoskinson broke into the spotlight with his contribution to the Ethereum project back in 2013/2014. Remember Hoskinson and Vitalik Buterin?
Unfortunately, Hoskinson and Vitalik got caught up in a squabble for whether Ethereum should be monetized or just an open source software like Bitcoin. Hoskinson was of the opinion that Ethereum should be monetized while Vitalik wanted a non-profit open source software.
Hoskinson eventually pulled out of the Ethereum project completely in 2014 to pursue other endeavours. And like is customary with us humans, Hoskinson is poised at creating a crypto that will someday rival and dethrone Ethereum.
Furthermore, in a bid to actualise his dream of creating a crypto that will dethrone Ethereum, Hoskinson teamed up with a certain guy named Jeremy Wood to create IOHK.
What Exactly is IOHK?
The following can be found on IOHK’s official website (iohk.io)
“Founded in 2015 by Charles Hoskinson and Jeremy Wood, IOHK is a technology company committed to using peer-to-peer innovations to provide financial services to the three billion people who don’t have them”
“We are an engineering company that builds Cryptocurrencies and Blockchains for academic institutions, government entities and corporations. We are a decentralized company that loves small, innovative teams forming and executing ideas that cause cascading disruption.”
Having read what IOHK stands for, it is important to note that, Current findings suggest that Hoskinson is linked to Ethereum classic (ETN) as well.
Our business today is with Cardano ($ADA), which is currently ranked 8 among all coins by coinmarketcap in terms of its market-capitalisation seating at $5.2 Billion.
Ethereum classic, on the other hand, is currently seated at 17th position with a market cap of $1.5 Billion
Having talked about its background and treated a few nitty-gritty, let’s focus on Cardano proper.
Just like NEO, Cardano was basically designed to put Ethereum out of business. It is a blockchain that is primarily used as a method of payment and like Ethereum, it is being designed to enable smart contract-based projects and activities to be hoisted on top of its main settlement layer for $ADA.
Extra layers will be built to facilitate the process mentioned above and unlike Ethereum that needs ‘gas’ to power transactions such as this, Cardano does not.
Furthermore, some observers think this gives Cardano an advantage over Ethereum while others do not. Although we chose not to be involved in the debate, that doesn’t take away the fact that, such a feature is worth putting into consideration. Let us know what you think in the comment section below.
It is, however, important to note that, this feature is also available In the Ethereum classic protocol which signals the fact that such Cryptocurrencies are built with the IOHK ideology.
From the foregoing, we can clearly see that Cardano’s principles are pretty similar to Ethereum’s. The following quote further affirms that fact:
“After the settlement layer that will run ADA is complete, a separate computing layer will be built to handle smart contracts, the digital legal agreements that will underpin future commerce and business. Cardano will also run decentralized applications, or dapps, services not controlled by any single party but instead operate on a blockchain”
Cardano was designed with similar technology as Ethereum but enhanced to be superior to the Ethereum project. To actualise this motive, a framework was integrated to make Cardano sustainable, scalable and interoperable.
It is sustainable in the sense that it operates with a governmental system which is better when compared to other Cryptocurrencies and has a better chance of surviving in the industry for long.
It is interoperable in the sense that it has a feature that enables it to communicate and interact with other Blockchains. Such features are aims at leveraging multiple technologies such as atomic swaps and sidechains, this will enable users to transact between different digital currencies.
Scalability is important for all sorts of businesses, it determines a business success. Cardano is scalable.
The Team Behind Cardano
Three different entities are responsible for the sustenance of Cardano’s project, they are: The Cardano foundation, Emurgo and Input-Output HK.
- The Cardano Foundation: This is a company saddled with the responsibility of promoting, developing and improving Cardano.
- Emurgo: Responsible for inviting new organizations to utilize Cardano’s Blockchain.
- The Input-Output HK Team: This is an experienced private technology firm currently under contract to work for the Cardano project until 2020. Remember Jeremy Wood and Charles Hoskinson previously worked for Ethereum and managed the Ethereum classic project; their wealth of experience is almost unrivalled.
With such an experienced team working on this project, it won’t be long before it becomes a major Bitcoin rival.
How Does Cardano Stand Out From Other Cryptocurrencies?
Cardano stands out from other coins in the fact that it has its own unique algorithm, called the consensus algorithm. This part is quite technical; we will, however, provide an overview of its meaning and a link to its complete technical breakdown for advanced users.
- Firstly, what is a consensus in the context of Blockchain technology?
Consensus (in the context of Blockchain technology) simply refers to “the process by which all nodes come to an agreement.”
- What advantage does this bring to Cardano?
All nodes in the Cardano Blockchain come to a “consensus on who has the privilege to produce the next Block for the Blockchain”. Bitcoin, for example, has a “proof of work” consensus, “this ensures that the miner who does the necessary calculations and arrives at an answer before other miners become a ‘winner’”
Cardano (ADA) uses a consensus algorithm called ‘Ouroboros Praos’.
Did you just try pronouncing it? Guess what, me too. But let’s focus on the bright side; it is not an English word and so not really necessary that you know its pronunciation. Take a break; it is not even Hausa, Igbo or Yoruba.
Moving ahead, how exactly does this method work?
Here is a quote from IOHK’s website:
Let me guess: you don’t understand where they are driving at – if yes, permit me to break it down a bit in the following paragraph.
What they are trying to say is, the consensus algorithm ensures the Blockchain remains safe as long as 50% of the total nodes running in the network remain uncompromised. It doesn’t matter if 20, 30 or even 40% are corrupted by a dishonest party (hacker).
This makes the Cardano network a lot more secure than others.
Furthermore, Cardano has a block explorer which allows users to check their transaction histories.
Its transactions are recorded publicly and easily retrievable. Users can check their transaction details such as date, time and amount transferred thanks to Cardano’s proprietary Blockchain technology.
Cardano’s blockchain is completely dependable; giving that it was created with a unique, scientific and methodical approach. Users have been left with excitement and high expectations.
The Cardano project focuses on:
- Cross-chain integration
- Compliance and regulatory focus
A Synopsis into ADA’s Ouroboros
Cardano describes the ouroboros as a ‘proof of stake mining’ algorithm. However, it can be said to combine the consensus algorithms of ‘proof of stake’ and ‘proof of work’
We earlier promised a link to details on the ouroboros algorithm, here it is.
Below is an 8-minute summary video explaining Cardano. I advise you watch:
Anyone who understands the Cardano project will be aware of the fact that it has all it takes to provide tough competition to the Bitcoin markets.
Where to Buy, Sell and Exchange Cardano
ADA can be bought, sold and traded like every other Cryptocurrency, it is currently ranked as the 8th best Cryptocurrency based on its market capitalization and trade volume.
ADA’s creators are quite ambitious, currently planning on making it available in Japanese crypto ATM machines. When this happens, ADA’s popularity will definitely soar and so will its value.
Cardano can be purchased in the following exchanges:
Why Choose ADA Over Other Cryptocurrencies?
ADA is considered by many to be the future of Blockchain technology; many experts describe it as an altcoin with great potentials and should be watched.
When Cardano hit Bittrex, its trade volume grew significantly, hitting over 10,000BTC daily across different locations. As if that was just a mere coincidence, it ranked among the top 15 coins upon its launch which didn’t come as a surprise anyway, as its innovations were found to be better than Ethereum’s.
Ada vs Ethereum
Ethereum no doubt has played a pivotal role in the development of blockchain technology. However, it seems to have run into some pretty powerful opposition. Cardano as we know it has started on the front foot, its ICO raised over $62million, a feat made possible through the sale of over 30billion ADA tokens.
Its next circulation is rumoured to consist of 45 Billion ADA coins, which will greatly serve to increase the coins worth. The project has a roadmap which when actualised will further improve its value and seeing that Cardano is already a major player in the Cryptocurrency ecosystem, – ranked in the top 10, the coin’s future is surely built on solid grounds.
Unlike Ethereum, Cardano leverages a new innovative technology – Ouroboros to stay competitive with new powerhouses like Ripple. Following its launch, ADA appreciated 30%, beating Litecoin into 5th position. It gradually dropped to the 8th position partly because of its potential update reports.
This is a coin backed by many excited investors.
Ada vs Bitcoin
|Coin Limit||45 billion||21 million|
|Transaction Time||20 seconds||10 minutes|
|Creator||Charles Hoskinson||Satoshi Nakamoto (Unknown)|
|Creation Date||October 1st, 2017||January 3rd, 2009|
|Market Cap 29/5/2018||~$5 billion||~$127 billion|
|Mining||Memory intensive||Processor Intensive|
Cardano’s transactions are a lot faster than Bitcoin, which is a key advantage. In addition to speed, Cardano handles more transactions than Bitcoin at cheaper rates.
This is truly a coin for the future.
That is all on our Cardano Review, do check back for more crypto-related informations and reviews.
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