Charles Hoskinson, one of the co-founders of Ethereum started the Cardano project in 2017. Cardano is one of the exciting projects in the cryptocurrency ecosystem. It sits at #4 on CoinMarketCap with a market capitalization of more than $50 billion. The Cardano project was conceptualized to improve the shortcomings of cryptocurrencies launched earlier like Bitcoin and Ethereum.
Interesting facts about Cardano
- The project started without a whitepaper, unlike most cryptocurrencies. It was the pioneer blockchain project that was peer-reviewed by academic professionals and blockchain technology experts.
- The code used to develop Cardano is open-source and can be easily accessed by the public.
- Cardano native token, ADA, is derived from Ada Lovelace, a famous English mathematician, and programmer. She was one of the first computer programmers in the world.
- Cardano is a third-generation blockchain project, the first and second generations are Bitcoin and Ethereum.
- Cardano is an altcoin that has unique use cases. Third-generation blockchain projects like Cardano helps to improve the usage of blockchain by utilizing Smart contracts. It promotes openness, transparency, integrity, performance orientation, and open collaboration.
- The three elements of Cardano in the blockchain ecosystem are scalability, sustainability, and interoperability.
The three organizations that came together to make Cardano stand from inception are:
- Cardano Foundation: It is a non-profit organization whose function is to standardize, protect, and promote the Cardano Protocol technology.
- Emurgo: It is a company that develops, supports, and incubates commercial ventures to impact their industries with blockchain technology.
- IOHK: Contracted to design and maintain Cardano till 2020.
Cardano code was built from scratch and not copied. It makes it more secure and reduces errors in the Cardano system.
Proof of Stake: Cardano vs. Other Cryptocurrencies
Cardano utilizes proof of stake on the Ouroboros network, which is the Cardano consensus algorithm.
What Is Proof Of Stake?
According to Coindesk, proof-of-stake is a method of maintaining the integrity of cryptocurrency, preventing users from printing extra coins.
Cardano uses the proof-of-stake method, while the first and second-generation Blockchain projects like Ethereum use the proof-of-work.
The idea behind the usage of the proof-of-stake and proof-of-work in Cryptocurrency is to ensure that the integrity of the whole cryptocurrency ecosystem is not compromised.
Proof of Stake vs. Proof of Work
Cryptocurrencies like Bitcoin and Ethereum consume a large amount of electricity when mining, this is because mining new coins take a lot of energy due to the proof of work algorithm.
Proof-of-work originated in 1993, the idea is to combat spam emails. The invention of Bitcoin in 2009 by the anonymous Satoshi Nakamoto led to the usage of proof-of-work in the cryptocurrency industry.
Satoshi observed that it is possible to use the Proof-of-Work to reach a consensus between many nodes on the Blockchain network. Satoshi used proof-of-work to ensure that the Bitcoin network is secured.
Proof-of-work generates a lot of energy. To solve the issue of energy usage, proof-of-stake was developed.
- Proof-of-stake was developed to ensure the anomalies observed in the proof-of-work algorithm are solved.
- Proof-of-work ensures that only one node is choosing to validate the next block.
- Proof-of-stake uses a lower amount of energy compared to proof-of-work.
Price Prediction and Future Growth
The price of ADA has risen about 700% since the beginning of 2021. It makes it one of the fastest-growing assets of 2021. At a 700% increase, its growth rate has surpassed that of Ethereum and Bitcoin in 2021.
In a way, it can be linked to Ethereum because they have very similar projects and use cases. So, investors are choosing to invest in a similar project with a lower price and future potential. The eco-friendly nature of Cardano is likely to attract investors.
You can use Cardano technology in the pharmaceutical industry to help detect fake drugs. So, it will be of good use to achieve one of the goals of the WHO. The education sector will benefit from Cardano, as seen with the government of Ethiopia partnering with Cardano technology to help improve student’s academic performance.
The role of Cardano is multi-dynamic in every sector. It also allows farmers to track supplies from farms to the retailer. The more the use case of Cardano, the more adoption it gets.
Impact of the Ethiopian Government Deal on Cardano
The impact of Cardano in Ethiopia is a milestone in Africa. In 2018, the team signed an MoU with the Ethiopian government to create a universal credentialing system for students. With about 1 million people onboard the program, IOHK is planning the first launch of the identity system in September or October. According to Charles Hoskinson, the founder of Cardano, and IOHK CEO, the company seeks to improve the world system for everyone using blockchain solutions.
Blockchain technology can help improve almost every sector of the economy. The more the use case of Cardano, the more attractive it is to investors. If the Cardano-Ethiopia project becomes a success, adoption will rise. It will influence the ecosystem positively.
Written By Adeyemi Boboye