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.

1. Scalability

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.

2. Interoperability

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.

3. Sustainability

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 project teams are also involved in visionary projects like this, this and this.

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.

ADA price chart

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.

  1. Byron era: Foundation era
  2. Shelley era: Decentralization era
  3. Goguen era: Smart Contracts era
  4. Basho era: Scaling era
  5. 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.

Cardano wallet

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.

Cardano price and Elliot wave pattern

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…

What Is The Double Spending Problem? How Does Bitcoin Solve The Double Spending Problem?

Is It A Good Idea To Invest In Dogecoin?

Double spending simply means spending the same money twice. For example, you enter a coffee shop, took some sips of Espresso. Now, you take a 10 $ bill and pay for it. That 10$ bill cannot be simply be paid twice, as the ‘real’ 10$ bill has been handover from you to the waiter. You paid it and it’s gone from you unless you steal from him/her(which have a minimum change of happening and of course other severe consequences !).

By all means, that 10 $ note is gone from you and you have been given a cup of coffee in exchange(a true barter system, right !). Once you give that bill, the payment was instantly made and verified by the waiter.

But, unlike our traditional transaction method, the cryptocurrencies like bitcoin, there is no human involved for the confirmation and verification of the payment you just made. So, it can lead to a double spending problem. Since the digital information can be easily reproduced, the same currency can be copied resulting in double spending problem as there is no actual being to confirm the payment.

The main feature of the Satoshi’s paper(Satoshi Nakamoto: An anonymous individual who pioneered the Bitcoin through his bitcoin white paper) was its unique solution to prevent the double spending problem by introducing a universal ledger system known as the blockchain.

Every single transaction made in bitcoin is included in the shared ledger or blockchain. These transactional blocks are stored in this ledger in an orderly fashion with time-stamp attached to each of these little transactions. That’s why it is known as the blockchain.

The blockchain gets longer and longer over time where more and more transaction records are added. The blockchain is maintained by the network of nodes that use the bitcoin software. Since the process of adding the transaction records to the blockchain required intense computation and algorithms, it takes a certain amount of time to verify it. When a transaction block is added to this public ledger known as the blockchain, all the nodes on the blockchain network keep the copy of the global ledger or blockchain. This entire process requires an intense amount of computational power. It’s really difficult to hack into the system as its complexity increases each seconds.No one can manage such expense of hardware and electricity cost single-handedly just to hack a single bitcoin from the blockchain unless you have control over more than 50% of the hash power of the blockchain network.