In this article we will analyse and explain what is Cardano, why it was created, and how it differentiates with other cryptocurrencies. At the moment, Cardano is one of the most important virtual currencies in the market and calls the attention of several investors.
What is Cardano?
Cardano is one of the top platforms in the virtual currency market. The Cardano blockchain platform is the home to the ADA cryptocurrency that can be used to send and receive digital funds.
But Cardano is not just a cryptocurrency. It is a technological platform capable of running financial applications. At the moment, several individuals and governments all over the world are using Cardano’s platform. That shows how useful the platform can be.
This blockchain has been constructed in different layers that gives flexibility to the system. In this way, it can be easily maintained and allow soft forks and other upgrades. Cardano will also be able to run decentralized applications.
An interesting fact about Cardano is that it is the first blockchain project to be developed from a scientific approach. As Cardano’s website explains, it is the only one to be designed and built by a global team of leading academics and engineers.
Cardano and IOHK Partnership
Cardano is related to IOHK, a blockchain start-up founded in 2015 by Charles Hoskinson and Jeremy Wood. The company is committed to using peer-to-peer innovations to provide financial services to the three billion people who don’t have them.
IOHK expresses about itself in the following way:
“We are an engineering company that builds cryptocurrencies and blockchains for academic institutions, governments, entities and corporations. We are a decentralized company that loves small, innovative teams forming and executing ideas that cause cascading disruption.”
Cardano uses a proof of stake algorithm known as Ouroboros. The company explains that it determines how individual nodes reach consensus about the network. This is a crucial part of the infrastructure supporting the ADA virtual currency and it is a major innovation in blockchain technology.
This technology eliminates the need for an energy-hungry proof of work protocol, which stands as a barrier to blockchain scaling up for so much. The algorithm has been designed by a team led by IOHK Chief Scientist, Professor Aggelos Kiayias. Moreover, this is the first proof of stake protocol that has mathematically been shown to be provably secure.
There are three main organizations that contribute to the development of Cardano.
The first is the Cardano foundation which is based in Switzerland. Its main responsibilities are to support the community of Cardano users and to work with authorities on regulatory and commercial matters.
The second entity working on Cardano is IOHK. IOHK is currently the holder of the contract to develop the Cardano platform until 2020.
Emurgo is a company that invests in start-ups and assists commercial ventures to build on the Cardano blockchain. The intention is to develop, support and incubate ventures and help integrate these businesses into Cardano’s decentralized blockchain ecosystem.
Charles Hoskinson, one of the co-founders of Ethereum was the main ideologist of the Cardano’s network.
Cardano in the Crypto Market
ADA is currently the 6th most important cryptocurrency in the market. It has a $9.4 billion dollars’ market capitalization and each ADA coin is traded around $0.36 dollars. Back in January, the currency was traded over $1.2 dollars and surpassed important established coins like Monero, NEO, Litecoin or Dash.
Cardano is a third generation platform that solves Scalability Interoperability and Sustainability. The scientific approach behind Cardano would prevent it to split like happened with ETH and ETC or Bitcoin and Bitcoin Cash.
With an incredible team of experts and scientist, Cardano has an incredible potential and has proved that it is here to stay (at least for some more time).
If you want to know more about other cryptocurrencies check our guides here:
Image Provided by Cardano.org
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