Cardano is a project based on a public, decentralized blockchain with an open-source code that allows people to see and contribute to the development of this project. It is said about Cardano being Blockchain 3.0, an improvement of the model that Bitcoin and Ethereum presents. Cardano is widely regarded as version 3.0 of the Blockchain technology, an improvement of the model that Bitcoin and Ethereum proposes.
The project relies on a scientific philosophy, where every part of the platform is built from scratch.
People from IOHK (Input-Output Hong Kong) are implementing a new way of using the technology, trying to build the most powerful and versatile version of Blockchain.
What is Cardano trying to solve?
The technology behind Cardano is trying to solve three major problems that we.re facing right now in the cryptoworld – scalability, inteorperability and sustainability. It is trying to achieve these things without comprimising the security of the blockchain and the platform.
Scalability describes the number of transactions per second, network resources or bandwith and data storage. Cardano is addressing this issue with the help of a new proof-of-stake protocol called Ouroborous.
Interoperability tries to reduce the friction between the three big aspects of the cryptoworld – exchange platforms, Blockchain technology and existing financial institutions such as banks.
Sustainability is a way of stabilising the governance of the Cardano community in order to prevent different forks in the technology. Another use of sustainbility is maintaining financial stability for the upcoming features.
Ouroborous is a new proof-of-stake algorithm that is under development by IOHK. Ouroboros might be the best solution for blockchain scalability problem as it removes the computational power required for proof-of-work algorithms. Additionally, the security of this new protocol has been mathematically proven and calculations show it cannot be compromised.
One of most important members involved in this project is Charles Hoskinson, ex-CEO of Ethereum until 2014. He is currently the CEO of IOHK, which is responsible for the technological development of Cardano as mentioned before.
Right now, Charles is the CEO of IOHK, the company that’s responsible for the technological development of Cardano.
The structure of the team relies on three different organisations, every one of them having very specific objectives.
The first pillar is Cardano Foundation, based in Switzerland and responsible with the community support around the project. This team will be in charge of liaising with the authorities in order to regulate and merchandise the platform.
IOHK is the second key component, with Hoskinson as its leader. Their duties within the Cardano project are the research and development of intelligent cryptographic algorithms and the integration of these algorithms within the platform. IOHK signed a contract that stipulates a termen due for platform development until 2020. IOHK is legally bound to finish the development of the platform by 2020.
The last but not least is Emurgo, an investment company which financially supports start-ups and has also been involved in this project since the beginning.
Cardano doesn’t have their roadmap designed into quarterly reports, but rather uses percentage-based progress reporting. This essentially means that the goals are independent of each other and every part of the team can achieve their goals without having to rely on other important players of this project. Right now, Ouroboros is 75% developed and is in a reviewing status, due for release in February 2018 with the team trying to release it February 2018.
A 50% progress has been reported when it comes to multi-signature transactions. Once this feature is released, two different people can have access to the same e-wallet. However, in order to make any sort of transaction from that wallet, the signature of both of those people will be required.
Other features of the roadmap that are currently under development include Wallet Backend redesign, Consensus Incentives and Fees, Quantum Resistant Signatures. You can see more features here.
In order to evaluate the real potential of this project, we need to understand the following – cryptocurrencies protocols are simple and efficient. Platform protocols are robust and flexible. Bitcoin and Litecoin are cryptocurrencies. However, this is not the case for Ethereum and NEO, which are first of all platforms and then currencies. Importantly, Cardano is trying to achieve both of these things – to become both a platform and a currency, equally so. Given that they will stick to the roadmap and the objectives set, Cardano is shaping up to be a huge player in the cryptocurrency market.