What is #Cardano / #ADA and what has it to do with #blockchain?

Cardano is a blockchain that has been living in the shadows of #Ethereum for quite some time. Interestingly, the two blockchains are somewhat similar. A bit of context would make it all easier to understand.

?It is believed that crypto has 3 generations so far (kind of like the web)

?Crypto 1.0 – Bitcoin, store of value

?Crypto 2.0 – Ethereum, smart contracts revolving around proof of work

?Crypto 3.0 – Cardano, smart contracts revolving around proof of stake

Cardano as a project is aiming to solve 3 main challenges: Scalability, Interoperability and Sustainability

?#Scalability

Cardano relies on the proof of stake model which allows for more transactions per second and lower fees when transacting. Both of these points are limitations of Ethereum and its proof of work model

?#Interoperability

In the current crypto space, there are many crypto currencies which unfortunately cannot “communicate” between each other. The limits the flow of information between blockchains. Cardano is looking to solve that problem and want to become the “Internet of blockchains” as they call it. An example of this is Cardano’s idea to add metadata to transactions which would help banks have more trust in crypto and transactions on the blockchain.

?#Sustainability

A lot of crypto projects raise money through an ICO (initial coin offering). However, there is a chance that these funds run out at some point in time. To make sure the project can be continually funded, the Cardano project has made a “treasury” which collects small fees and distributes them to those who make contributions to the network. It is important to note that the treasury is not controlled by any one person but rather the community which then decides which proposals to go through with and support.

Two interesting use cases for Cardano are related to 1) Reducing counterfeit goods and 2) Cardano in Africa.

?1) Reducing counterfeit goods

Previously, Cardano has partnered with the shoe company New Balance. The idea behind that was that New Balance could provide customers with “Tangem cards” which resembled a credit card. The cards could then be scanned with a smartphone to obtain a certificate of authenticity.

2) Decentralised identities on the Cardano blockchain

Atala PRISM is a decentralized identity solution that enables people to own their personal data. It allows individuals to interact with organizations in a private and secure manner. All the information is stored on the Cardano blockchain which means credentials can be verified from anywhere without the need for third-party verification services and fees for such intermediaries. With Atala PRISM, individuals have complete control over their own data.

?Cardano also has a popular presence in Africa where the blockchain can bring solutions to problems like voting systems, land registration, tax payments, and school certification. The potential of smart contracts is unlimited and the Cardano community is always looking to come up with new ways of making the world a better place.

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