A fundamental breakdown of Cardano
Cardano is a 3rd generation, open source, multi-tier, decentralized PoS-based blockchain platform for creating smart contracts.
The network operates on the basis of the Ouroboros PoS algorithm (proof of ownership), that is, without miners.
It provides mathematically verifiable protection against intruders.
Founder – Charles Hoskinson.
In 2013, he co-founded ETH with Buterin, but in 2014 they parted ways.
Later, Charles took up the development of Cardano and conducted several ICOs during 2015 and 2016.
The company’s team consists of a large number of researchers, including five professors from Oxford, Edinburgh, Wyoming and Massachusetts.
How it works?
In simple terms, the protocol distributes control between staking pools – operators of nodes with infrastructure for reliable connectivity.
The blockchain is divided into slots (20 seconds each) Slots are combined into eras (5 days).
For each slot, a leader from the staking pools is assigned, who is rewarded for adding a block to the chain. ADA holders can delegate their stake to a specific pool, which increases its chances of becoming a leader.
The main characteristics of the platform:
– scalability (via sidechains)
– compatibility with other blockchains and fin. structures
– sustainability (through community control)
The development of the project takes place according to 5 eras:
1. The era of Byron – the introduction of buying / selling coins, the creation of Daedalus and Yoroi wallets. The network is centralized.
2. The Shelley era is a period of growth, expansion and decentralization. Formation of the staking pool system (completed in Apr 2021)
3. The era of Gauguin – the creation of dApps and smart contracts.
4. The era of Basho – optimization and scaling: implementation of sidechains.
5. The era of Voltaire – complete self-sufficiency of the system and direct democracy of management: the participants will be able to regulate the project themselves.
At the moment, the project is in the third stage of development (the era of Gauguin).
Benefits of Cardano:
– scientific approach to development
– the strongest team of scientists from the best universities in the world
– carefully thought out development plan
– technological innovation
– large community
– demand for ADA cryptocurrency
– fast and cheap transactions
– potential scalability and resilience
The obvious disadvantage is that the project is under development, so it is difficult to predict the final outcome.
As a result, we can say that Cardano is a serious project with global perspectives.
The project’s competitor (ETH 2.0) is strong, but the markets are different, and the community is positively disposed towards coins on the PoS blockchain for their environmental friendliness.
ADA reliably holds a high position in the top ten cryptocurrencies, behind only BTC, ETH, BNB, USDT and SOL.
