ADA Cardano In-Depth Guide
A Look Into The Future of Cryptocurrency with ADA Cardano
Cardano Background, History & Development
Meet Cardano, ADA & Daedalus
Cardano, presumably named after Gerolamo Cardano, (the Renaissance era Italian mathematician, physicist, biologist, physician, chemist, astrologer and personal friend of Leonardo da Vinci), is a decentralized public blockchain that is developing a smart contract platform which seeks to deliver more advanced features than any protocol previously developed. Is fully open source and provides complete transparency. What makes Cardano special among the myriad of other new blockchain technology companies is that they are the 1st blockchain platform that takes scientific philosophy and uses a “Research First” driven approach and used it to develop the blockchain and platform. The team that develops Cardano is made up of a large global network of experts in engineering and research. And I was basically a scientifically proven watching technology and cryptocurrency.
As with all as with all Blockchain’s, Cardano also has a cryptocurrency or token of value. Ada is the cryptocurrency token of Cardano. With ADA, users of the Cardano Blockchain contrast or value between each other, pay for services or goods, utilize the money and exchanges for trading, or enter an application. In order to interact with the Cardano Blockchain you must be able to perform a settlement on the transfer where which will require that you own ADA. ADA will also be the needed token that will be used in all our patients that are built on the computation layer.
You have a Blockchain and you have a digital token, now all we need somewhere to store that digital token. Enter Daedalus. Not the mythological Greek Artisan, but rather, Cardano’s highly engineered wallet with the best security features, developed by IOHK specifically for implementation with the Cardano Blockchain and ADA. Using only the most advanced photography, the Dallas not only supports ADA but other crypto currencies such as Bitcoin, Ethereum classic, and many more.
Input Output Hong Kong (IOHK)
IOHK: The Company Behind ADA Cardano
IOHK was founded in 2015 by Charles Hoskinson and Jeremy Wood. Charles Hoskinson is one of the original Founders of Ethereum. Is a technology company that is dedicated and committed to provide financial services to over 3 billion people around the globe who have no access to them currently. While they are in engineering company at their core, mainly building life-changing Cryptocurrencies for academic institutions as well as governments and corporations, they say there are a decentralized company that prefers the small, innovative and imaginative teams who come up with the ideas because cascading disruption.
IOHK is also the lead development team behind the Ethereum classic, so while the company name may be new to you, their work should not be. In all, I owe HK has 6 core projects that are currently in development. Those projects consist of Cardano, Ethereum Classic, Daedalus, Qeditas (a library of formalized mathematics), Scorex (a platform to combine consensus protocols, transactional structures, and networking infrastructure), and RS coin (a proposed framework to implement centrally bank monetary systems based on cryptographic methods).
Diversity Behind ADA Cardano
IOHK is comprised of a large team that is distributed around the globe. The team consists of engineers, scientists, business professionals, technology specialists, developers and software engineers among others. Full bios and information on each team member can be found on the IOHK website’s team page.
Disrupting the current system that is in place around the world for handling money, and turning it into a more decentralized arena is the point. What you then have is not something that anyone, other than the banks that stand to lose millions, would really have a problem with. The fact that IOHK is comprised of more than just your standard cryptography developer and crypto enthusiast make it a company worth following. Almost as if it lends legitimacy to cryptocurrency as a whole. Before now, not many people would associate the terms PhD or scientist with cryptocurrency. With IOHK, all of that changes.
What Is Cascading Disruption?
Besides being the basic principle of IOHK, cascading disruption is the idea that most of the structures that make up the world financial, governance and social systems are inherently unstable and thus minor changes can cause a sort of ripple effect, that, at it’s very core, reconfigures everything within the entire system. So, in order to push forward on more fair and transparent order of things, IOHK’s purpose is to identify and develop the technology to force these changes through cascading disruption.
An Example of Cascading Disruption
If an example of cascading disruption can be found just by looking at the last couple of days on the cryptocurrency markets. Rumors had surfaced, saying that Coinbase would be adding Ripple (XRP) to their exchange. Coinbase, being the largest cryptocurrency exchange in the United States, adding XRP to its list of options was huge news for the cryptocurrency world, particularly Ripple (XRP), whose prices skyrocketed to over $3.50 per coin. 2 days after a lot of people became rich with XRP, Coinbase released a statement on their website that they had no such intentions of adding any coins at this time. The result, no pun intended, was a ripple effect because the price of XRP plummet down to under $2 per coin, making all of those rich people, well, poor once again. It also caused many people to lose money because they jumped on the XRP bandwagon and did not jump off in time before losing a lot of money.
During the whole ordeal, XRP actually overtook Ethereum is the second largest cryptocurrency by market capitalization, and then once again fell to the third-place position according to Coin Market Cap. Due to these changes in market capitalization, prices of Ethereum, Bitcoin, Litecoin and just about every other major cryptocurrency was affected in some way. Cascading disruption. One small event in the financial world cause all kinds of consequences for all other crypto currencies.
Cascading Disruption: A Benefit or Hindrance?
While at first it may cross your mind that maybe we don’t want cascading disruption because it causes all kinds of turmoil and chaos in the crypto currency markets, a second look may just show you why this can be a good thing.
Cardano was born from the scientific philosophy of IOHK, which is also their mission statement according to their website;
“We view the world as a series of giant and mostly interconnected social graphs with hundreds of complex systems embedded. Our mission is to perturb the grass to a more connected, transparent and fair configuration for both the flow of ideas and value.”
Just by looking at some of the projects they’re working on, it is easy to figure out exactly what all of that means. They’re mainly working on cryptographic research in regards to the architecture of Cryptocurrencies themselves. This includes developing an open source library for universal composability and what they call the Scorex Project. They also do work for profit as well, developing solutions and products to meet the customer’s needs.
Cardano is Developed by Very Smart People
Cardano is by far the most advanced blockchain platform protocol that is ever been developed. It is also the very first and only blockchain platform that has evolved out of a scientific philosophy. Another project that IOHK actively works on currently, and one that is much more easily recognizable to the general public, is the Ethereum Classic.
One look at the IOHK team page on their website will show you just how smart they really are. Out of the 88 team members listed on the website, at least a dozen of them had either PhD or Scientist attached to the end of their name.
The Goal of Cardano
According to the Cardano website, Cardano is not only home to the ADA cryptocurrency, but it is also technological platform that will be capable of running financial applications that are currently in everyday use by individuals, banks, organizations and governments all over the globe. The entire platform is built in layers, allowing the system to have the flexibility to do more, is easily maintained and provides an avenue for upgrades by way of soft forks.
On the very first and base layer, you will find ADA. The next layer will be built as a separate computing layer and will be for handling smart contracts or the digital legal agreements that will underpin the future dealings of commerce or business. Furthermore, Cardano will also have the ability to run decentralized applications, better known as “Dapps”. Dapps are basically services that are not controlled by any single entity, but rather they operate on the Blockchain itself, controlled solely by the smart contract associated with the application.
For a more detailed explanation of Cardano and ADA, you can check out the Cardano overview with Charles Hoskinson at this link.
The Cardano Blockchain and Proof of Stake
Why Cardano Is So Unique
Cardano is the 1st and only blockchain project in the entire world that has been developed solely from a scientific philosophy and it is also the only one that has been designed and built by a global team comprised of leading academics and engineers in both the academic and technological worlds. To ensure that the technology is secure, flexible and scalable, considerable thought and research from these leading experts in their fields has been used in the design decisions. Using strict scientific guidelines that are also used in aerospace and banking have been brought to the field of Cryptocurrencies through Cardano. As far as it is known that is the first time it is ever been done for Cryptocurrencies.
One of the most major innovations of the Cardano platform is the way that it balances the needs of both its users with those of the people who wish to regulate Cryptocurrencies and financial assets in general. IOHK, through Cardano, has found a way to combine privacy with regulation and came up with a balanced platform. That being said, the ultimate vision for Cardano is a brand-new style of regulated computing that will deliver greater financial inclusion by providing easier and open access for everyone to fair financial services.
Quantitive & Qualitative Research
As with the development of any new project, whether it be Cryptocurrencies are not, the team responsible for the project must do a little bit of research. In order for anything to be successful you have to know HOW it is going to be successful. In most cases, the team behind the project has some kind of experience or knowledge at the very least, in the field in which they are trying to launch their project. Research usually consists of seeing what the competition does and what works for them and what doesn’t work.
IOHK takes this type of research to the next level, applying strict scientific guidelines to their research. By applying these strict scientific guidelines to the research that is to be performed in the development of Cardano, the team has successfully implemented the same type of protocols and procedures that you will find that NASA, MIT and other global leading technology in aerospace companies. After these stringent guidelines for research were applied, every single idea was peer-reviewed before even being implemented as a test.
Each and every step in the process of creating the Cardano platform was research, testing, review, modification and then peer-reviewed again. This rigorous and strict procedure is what enabled Cardano to become the platform that it is today.
It has resulted, not only in the uniqueness that Cardano brings to the cryptocurrency world, but it also brings a brand-new algorithm named “Ourobos”.
Proof of Stake
Proof of stake or PoS, is a type of algorithm used in the cryptocurrency world, specifically on a Blockchain network with the goal of achieving distributed consensus. In proof of stake, the creator of the next block is chosen by various combinations of seemingly random selection along with other factors such as worth and age. This differs from Bitcoin’s algorithm, proof of work, which uses the method of solving computationally difficult puzzles in order to validate all the transactions and create the new blocks.
Ouroboros, referencing the agent Egyptian icon that represents introspection or the sense of something constantly re-creating itself, is a major innovation within Blockchain technology. It eliminates the need for the ever-increasing and harder to obtain energy that proof of work protocols need, as well as answers the security issues that previous proof of stake algorithms have continued to face. The design team is led by IOHK chief scientist, Prof. Aggelos Kiayias. It is the 1st proof of stake algorithm that has been mathematically shown to be provably secure. It has undergone a thorough peer review and was accepted as secure at Crypto 2017, the leading cryptography conference. The level of security that has been demonstrated by Ouroboros compares to the Bitcoin Blockchain, which is, notably the only Blockchain which has never been compromised.
With this new, highly advanced technological breakthrough, the team behind Cardano may have finally solved the eternal problem that most Cryptocurrencies have faced. Cardano does not take a lot of energy consumption, yet it is as secure as the Bitcoin Blockchain. Revolutionary to say the least.
Cardano’s Cryptocurrency Token: ADA
ADA is a digital token that serves as the currency for the Cardano platform. The purpose of ADA and where the token gets its value from lies with the ability to transfer value directly between 2 individuals. In this one sense, it is no different than any other digital currency that has been released lately. However, with ADA and the underlying technology that is built on, it seeks to provide a way for everyone on the globe to have access to his financial services while at the same time providing governments and other regulatory bodies with the features that meet their needs as well. ADA is essentially trying to bridge the gap between the consumer and the regulator in a way that is acceptable to both. This is where the true value and uniqueness of ADA is found.
In order to use ADA, you will 1st have to download the wallet for the cryptocurrency. Daedalus is the name of the wallet, and it can be found at the Cardano website here. Daedalus is a secure, multi-platform, HD (hierarchal deterministic) wallet specifically for the ADA cryptocurrency. You simply install Daedalus on your computer and then open the application as you would any other piece of software that you download. There is a video tutorial on the Cardano website at the link above if you need any help in setting up your Daedalus wallet.
The wallet allows you to send and receive ADA, as well as shows you the history of the transactions that you have made. You will also be able to see information about the state of the Blockchain and beyond using it to send and receive money and view transaction histories, the Daedalus wallet has other special features which make it easy to use and will make you feel confident about it’s security.
These features include encrypted private keys and spending passwords, the ability to export the wallet to a paper certificate (which provides maximum security), ADA redemption that is built directly into Daedalus, and configurable transaction assurance level monitoring; which will allow users to be sure when transactions become irreversible.
Other features, such as Ethereum Classic and Bitcoin support, a mobile version for both Android and iOS, the ability to stake (which will enable ADA holders to participate in block generation and earn more of the cryptocurrency), as well as the ability to add in community built applications via an application store; are all under current development by Cardano.
At the time of this writing the Daedalus wallet is currently in version 0.5.1. You can download the Daedalus wallet directly by visiting www.Daedaluswallet.io.
ADA can be obtained on the following exchanges: Bittrex, Binance, BitMEX, UPbit, and Coinnest currently. Soon, ADA will be added to Bitt and Cryptopia, as well. Cardano’s ADA token has become the 5th largest cryptocurrency by market capitalization according to Coin Market Cap. Given the fact that Cardano launched ADA only 4 months ago, it shows just how beneficial both the platform itself actually are. As of the date of this writing Cardano commanded a $19.7 billion market capitalization.
It really picked up steam just before Christmas and then again right around the new year, climbing from around $.12 USD and peaking at a $1.25 USD recently. As of January 10, 2017, it is currently trading at $.79 USD.
If you live in Japan, or are visiting Japan, ADA is also available in a network of ATM machines throughout the country. There are 5 locations in total to begin and it is planned to grow to about 25 ATM machines within the 1st year of ADA’s launch.
The total amount of ADA that will be mined is 45 billion. There is currently a total supply of 31.1 billion ADA and a circulating supply of 25.9 billion. The average trading volume in a 24-hour period is the 237.9 million USD. You can find out more about ADA by visiting the Cardano website and viewing the Cardano settlement layer documentation page, which can be found HERE.
Spending the Cardano ADA Token
Although not yet currently available, Cardano is issuing a debit card that will allow you to spend your ADA just as you would your local currency. The funds are automatically converted into the local currency of your choice. You will be able to use the debit card to pay merchants as you normally would; both online and at brick-and-mortar locations. The card will feature a security check and will be linked to a mobile app which you will use to keep track of your transactions, balance, as well as manage how much ADA to move from the Daedalus wallet to the card. No specific date is given for the release of the card and it is recommended to keep checking on the Cardano website for further information and updates.
Cardano ADA Conclusion
Without a doubt we have come a long way since Satoshi Nakamoto first introduced us to Bitcoin in 2009. It seems that every other month a new cryptocurrency is released that seems to solve a problem of a previous Cryptocurrency. Cardano is no exception. The difference is that Cardano has seemed to have solved all of the previous problems combined. The fact that they use scientifically monitored and governed guidelines for the research, as well as making it mandatory that every implementation of any idea is peer-reviewed prior to implementation, is a tribute to the fact of just how serious cryptocurrency has become. Cardano may not be the end-all, be-all of cryptocurrency, but it is definitely a step up on the staircase to perfection. Either way, ADA has proven to be a serious digital asset whose value can only be expected to increase from here on out.
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