Cardano is a third-generation cryptocurrency, bringing new concepts and technologies to the cryptospace for better scalability, interoperability, and sustainability.
Home to the Ada cryptocurrency, Cardano is the first blockchain project to be developed from a scientific philosophy. It’s also the only one to be designed and built by a team of leading academics and engineers.
Cardrano is being constructed in layers for greater flexibility, easier maintenance, and to facilitate updates through soft forks. It will also run decentralised applications, or ‘dapps’ – services not controlled by any single party but instead operate on a blockchain.
The BitMex, Bittrex, Upbit, Binance and Coinnest currency exchanges list Cardano ADA futures. Daedalus is the official cryptocurrency wallet that supports Cardano.
Cardano strengths and attributes
Cardano remains a work in progress, which is outlined on its website. The three core principles of this roadmap are:
- The growth of the community and its needs
- A disrupted and resilient network true to the original vision of Satoshi Nakamoto (founder of Bitcoin)
- Balancing the pace of research and development so commercial advantage does not win out over the application of scientific rigour
At this moment in time, Cardano can be characterised by these attributes:
- Layered Technology – The Cardano Settlement Layer (CSL) is responsible for the token economics and the balances of all user accounts, whereas all the smart contract functions exist on The Cardano Control Layer (CCL). This allows for easier upgrades and enhanced flexibility.
- Proof of Stake Protocol – Cardano uses a Proof of Stake system called Ouroboros. The network randomly elects a node to confirm the next block and the rewards are given to that node. The more tokens you have, the more likely you are to be elected.
- Coding Language – Cardano uses Haskell, a dynamic coding language that utilises mathematical verification methods in order to limit human error and improve accuracy.
- Wallet – Cardano’s dedicated wallet is called Daedalus, which supports the network token Ada. From the wallet, users are able to “stake” their tokens and potentially be elected to confirm blocks.
- Governance – Cardano wants to implement on-chain governance, meaning token holders can vote on community proposed updates to the blockchain. These updates are then encoded into the blockchain.
- Treasury – Cardano intends to have a treasury system, funded through 25 per cent of block rewards. ADA token holders can vote on how to spend that money.
Cardano price and volatility
Cardano is sometimes called the ‘Ethereum of Japan’ because 95 per cent of participants in the ADA Initial Coin Offering (ICO) were Japanese.
In December 2017, the price of ADA leapt 117 per cent in just 22 hours. This meant it surged past IOTA to become the sixth largest cryptocurrency in the world with a new market cap of US$10.4 billion.
In January 2018, soon after Cardano rallied alongside other cryptocurrencies, co-founder Charles Hoskinson predicted that the market would strengthen after weaker alternatives fail.
“What’s going to occur is a lot of these ventures that don’t have strong fundamentals, don’t have good tech, or just unrealistic projects, they will eventually run into some major wall they can’t quite overcome,” he told CNBC.