Cardano Review: Beginners guide
Cardano (ADA): 3rd generation decentralised applications platform
Industry type: Decentralised applications (dApps).
What is Cardano?:
Cardano is a 3rd generation smart-contract and decentralised applications platform that is in development and spearheaded by a worldwide team of respected experts who approach the project with a peer-reviewed scientific ethos. Although the Cardano platform is still in development, it is built in layers at a time and one of its layers is currently in operation supporting Cardano’s native cryptocurrency, ADA.
What gives it value?:
- 3rd Generation technology.
- Enhanced scalability and security.
- Developed by a global collective of experts.
- Developed to work with regulatory authorities.
- Based on scientific principles.
- The Ouroboros Proof of Stake algorithm is used on the Cardano network to process transactions. The Proof of Stake algorithm is considered to be much more efficient and environmentally friendly than the traditional Proof of Work.
- The Cardano network is made with multi-layered architecture. This approach allows for the network to be optimised in sections with each layer connected to each other through a side-chain.
- The Cardano settlement layer (CSL) is an accounting layer from where the native ADA cryptocurrency functions from its own blockchain.
- The Cardano computation later (CCL) is a smart contract layer that will support decentralised applications on its own blockchain.
- The CSL and the CCL both function on their own individual blockchains that are connected to each other through a side-chain.
- Michael Parsons is a seasoned executive and consultant in the banking industry who is one of UK’s thought leaders on blockchain technologies. Parsons is now the CEO of the Cardano foundation.
- Ken Kodama is a financial planner and the CEO of Cadano partner Emurgo. Kodamo founded Emurgo in 2017 and works on promoting Cardano worldwide.
- Charles Hoskinson is a technological entrepreneur who co-foundered Cardano partner IOHK. Charles Hoskinson was also the co-founder of Ethereum with Vitalik Buterin but left Ethereum to start IOHK in 2015.
- The Cardano foundation acts a regulatory body for Cardano that seeks to study and propose blockchain and cryptocurrency regulation, whilst acting as an objective organisation for enterprises to join the Cardano network.
- Emurgo is a Japanese company that works to invest in, develop and support decentralised application projects specifically for the Cardano network.
- IOHK is a research and engineering company that builds cryptocurrencies for academic institutions, government entities, corporations. IOHK is contracted to design, build, and maintain the Cardano network until 2020.
Cardano Review: The Good
- Multi-layered development will help the maintenance and evolution of the Cardano network in the long run.
- Technology and academia is peer-reviewed.
- The team is very transparent about the progress of the network and actively converse with their investors and the public.
- The platform development team are taking their time to release the best technology possible, rather than releasing the project prematurely.
- Improving problems that are inherent to current blockchain and crypto technology rather than fixing one particular problem.
Cardano Review: The Bad
- The platform won’t be finished until 2020.
- The democratic voting of token holders for changes in the network to take place may not work.
- It is speculated that currently a majority of ADA is owned by a minority of token holders which potentially centralises the power of voting.
- Ledger Nano S support of ADA is in development.
- The Cardano foundation is securing partnerships to develop a debit card that can use ADA for spending transactions.
- A blockchain research facility that focuses on Cardano will be opened in Vietnam.
- Emurgo is securing a partnership with Metaps Plus for over 33,000 stores in South Korea to accept ADA as payment.
In my opinion, if indeed the Cardano platform succeeds in launching with next-generation technology that works more efficiently than its competitors at the time, then it is likely that it may become one of the strongest platforms with a highly valued native cryptocurrency. However, in order for Cardano to achieve it will need dApp developers to build their projects on its network, and with other strong dApp platforms to compete with, only time will tell if Cardano lives up to its expert team and peer-reviewed approach.
The current Cardano price, market cap and charts.
Where to store this crypto:
Hardware wallet: www.bitgear.com.au
Desktop wallet: https://www.cardano.org/en/the-daedalus-wallet/
Ethereum (ETH) – The original decentralised applications platform.
NEO (NEO) – A Chinese decentralised applications platform.
EOS (EOS) – 2nd generation decentralised applications platform.
Ethereum Classic (ETC) -The hard fork of Ethereum.
Academic Papers: https://www.cardano.org/en/academic-papers/