Cardano is one of the popular blockchain platforms that has implemented the Proof of Stake(PoS) concept. Bitcoin and its blockchain platform are based upon the Proof of Work(PoW) concept resulting in huge consumption of energy for the mining process.
Like every other blockchain platform, it is open-source and of course decentralized. The participant nodes in PoS are incentivized based upon the amount of stake they hold and are randomly selected on who can validate the next block.
However, there exist some known problems in PoS protocol like ” nothing at stake problem” where the validating party can validate multiple nodes at the same time, in both correct chain and forged chain. This is planned to be mitigated by penalizing the validator in case of any wrongdoing.
I will include more details on the Proof of Stake concept in my next blog. Stay tuned.
Cardano Protocol Parameters:
For the sustainable existence of any crypto currency following parameters need to be consider that Cardano is expected to suffice.
In order to enable scalability, Cardano allows faster transactions per second where verification of a transaction is done by slot leaders in each slot of an epoch. Bandwidth utilization is managed by creating multiple sub-networks.
Since it is sure that we will be having multiple cryptos coexisting, so, Cardano allows the operability of different cryptos in its network. Some even define it as an “Internet of blockchain” allowing seamless transactions between different cryptos.
In order to enable the sustainable existence of the Cardona network, it has a treasury model to fund its developers by selecting the best improvement proposal.
Cardano Use Cases
Since Cardano uses the smart contract, it is really useful for implementing numerous financial instruments like loan processing, lending, and borrowing, swapping of liquidity, insurance, margin lending, etc. Let me clear you about the concept of smart contracts in short.
Smart contracts are simply an if/else …then ..statement written code that fulfills or completes the contract once a certain condition is met. Once the condition is satisfied, the transaction proceeds, and finally completed that gets updated in the blockchain.
These smart contracts are immutable(cannot be changed ) and decentralized thus replacing the existing escrow method that required a trusted third party. Will it replace the lawyers?… Well, maybe, yes.
Other features of smart contracts are the ability to hold the funds, include a concession clause if the contract needs to be terminated or for fund refund, and even can trigger another contract. This will hugely reduce the intermediatory charges and speed of execution and implementation of a contract.
Crowdfunding will be the major beneficiary of the smart contract, by the implementation of proper protection of deposits and smart contract failures.
Another use case may be in the insurance sector. However, there seems some issue relating to it yet to be fully resolved. Like, relating or acting to data from the real world. How to determine, if an accident of the insurer has occurred and need to refund him/her? How to make real-world events visible in smart contracts without human intervention?
Cardano Price Prediction
Based upon the Cardano blockchain, there exists crypto named ADA coin based upon the name of Ada Lovelace, the world’s first programmer. As of June, 6th 2021, the price of a single ADA is 1.66 US$. Some have made a huge bet on ADA expecting the price to reach even $10 in the near future.
ERA in Cardano
The Cardano era is the phase in the development of the Cardano blockchain network. Namely, it consists of five eras: Byron, Shelley, Goguen, Basho, and Voltaire. It is obvious that in each era there will be changes in the functionality of the Cardano network.
Each era appears as subsequent phases but the discussion on research & development of each era can happen parallelly. More details on eras can be found here.
- Byron era: Foundation era
- Shelley era: Decentralization era
- Goguen era: Smart Contracts era
- Basho era: Scaling era
- Voltaire era: Governance era
The future of Cardano
Some consider it an underdog coin because of its huge future development plans. Some expect the price to reach 10 $ by 2022. As of today, 7th Jun 2021, the price of 1 ADA is 1.6758 USD.
Since Cardano is not based upon the ERC20 token like ETH, the Cardano developers have come up with a completely different wallet for its blockchain. One of the most popular wallets is Daedalus that is available in the Desktop version for Mac and PC. Other popular wallets are Yoroi and Infinito wallet that are available as a mobile app.
Elliot wave analysis of Cardano (ADA)
After the huge crypto crash in May 2021, ADA is trying to recover some of that in recent times. Cardano seems to have formed ascending triangle where wave A to D is complete and on the way to E wave pattern before facing the next pullback. At the pullback, the setup for the main wave C can be anticipated.
FAQs on Cardano
Below are the couple of frequently asked queries with quick answers.
Who is the founder of Cradano?
Cardano network was developed by a Hong Kong-based company named IOHK. The CEO of Cardano is Charles Hoskinson who is its founder and also the co-founder of Ethereum.
How and where to buy Cardano ADA ?
ADA can be easily brought from the popular crypto trading apps like Binance, Huobi, and Bittrex with fiat currencies.
Learn more on crypto…