Cardano (ADA) was founded in 2015 by the co-creator of Ethereum (ETH), Charles Hoskinson. As the member of Ethereum he improved ETH network alongside his team. ETH is a second generation digital currency, and the biggest producer of Dapp network.
Currently it is the second largest currency in the market. Charles aim to invent cardano was to bring science in to the crytpo network. Cardano is built by a global team of leading academics and engineers. It is based on three fundamental team members which includes, Cardano Foundation, IOHK and Emurgo.
Cardano Foundation main aim is to drive adoption of ADA, shape legislation and commercial standards, growing the global Cardano community, ensuring stakeholder accountability and facilitating partnerships with different companies. Cardano Foundation is core body of ADA based in Switerland.
Input Output HK (IOHK) are contracted to design and build Cardano through the proof-of-stake (PoS) paradigm which are dependent on the active participation of the owners of the assets maintained in the ledger.
Emurgo, also is a main part of cardano’s team which advertises ADA through commercial ventures. They are aiming to create an efficient and transparent world with global stakeholders.
Problems of Bitcoin and Ethereum
Charles said that the creator of Bitcoin, Nakamoto created a decentralized database and a ledger which was insufficient. The investors at first didn’t understand that and they started to value bitcoin as real money and it took years to realize that it actually is a digital currency based on the concept of blockchain.
Charles added that in 2013, BTC saw enough capital investment of billion dollars and was globally recognized even though it was launched in 2009. People started to notice the defects of bitcoin when it was taken seriously, it’s obvious after using a new brand, the customer recognizes it’s advantages and disadvantages and that’s what happen for the users of bitcoin.
Ethereum (ETH) is the second generation digital currency. Stating about Ethereum (ETH), the CEO of cardano said that the basic issue of ethereum is that it is victim of its own success.
ETH is amazing in many aspects but still it has a scalability issue. But what cardano will bring is scalability, interoperability, and sustainability becoming the third generation cryptocurrency.
Cardano (ADA) Aims to become 3rd Generation Cryptocurrency!
At first when digital currency started to work, the main effort was to improve Bitcoin which was the original blockchain technology on which digital currency was based.
Nevertheless, today many cryptocurrencies have appeared to challenge Bitcoin and Ethereum. Each digital currency has it’s own blockchain and each blockchain has different aims.
In the midst of other digital currencies that are developed alongside bitcoin is cardano (ADA). Cardano was invented with an aim to identify and fix those problems linked with the orthodox cyptos such as BTC and ETH.
The investors and market share holders need to understand the the mission of cardano. Cardano is working hard to change the whole look of cryto community. The investors needs to study the concept of cardano because it is the one for future.
The team of cardano under the leadership of Hoskinson is working tirelessly and is aiming to make ADA the best network for holding smart contracts, dApps, and ICOs, but also, the solution for some of the most outstanding issues of the second generation of cryptos.
At the moment proof-of-work (PoW) is among the renowned methods applied in the cryptocurrency world for verification.
This verification is necessary for blockchain to function properly. But Hoskinson thinks that PoW is quite clumsy and problematic and many other joined their voices with him on this issue claiming that it takes a lot of energy.
The invention of proof-of-stake (PoS) has already become an alternative of PoW. PoS makes sure that least amount of energy is consumed.
Apart from that it is more secure and effective in producing consensus and verifying transactions. Proof-of-Stake offer users the opportunity to exchange or should we say “stake” cryptocurrencies for some powers used for the mining and verification process.
Cardano aims to bring a new invention to 3rd generation with Innovative Smart Contracts, beside replacing Proof-of-Work with Proof-of-Stake, ADA has made a new domain-specific language (DSL) that is fixed to ADA domain alone. This language is invented merely for the financial contracts execution, this is a main process in blockchain technological area today.
Cardano sights smart contracts as one of the most important part of blockchain because it allows transaction without third party verification. So ADA came up with their own distinctive verification system for smart contracts.
Cardano is a competitor and for sure they are working very hard in the seek of the best solutions for all of the issues that the crypto world faces. In coming time cardano is going to become the new face of cryptocurrency, fixing the problems of 1st and 2nd generation cryptos. ADA will be skyrocketing in next ten year span.