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What is the Cardano (ADA) cryptocurrency and what is it for?

Often referred to as the Japanese Ethereum, in the same way that Neo is known as the Ethereum of China and this is because all these platforms seek to extend the uses that can be given to blockchain technology. 

Among the uses that can be given to these platforms is the execution of decentralized smart contracts, which means that Cardano is a direct competitor of Ethereum.

Cardano entities 





Behind Cardano are 3 entities that are more or less independent:

  • The Cardano Foundation with headquarters in Switzerland.
  • IOHK is a technology company primarily responsible for the technical part of the protocol.
  • I emulate the financial muscle of Cardano, based in Japan.

 

History of Cardano 

Cardano’s best-known face is that of Charles Hoskinson, Hoskinson was one of the co-founders of Ethereum, but his plans were very different from those of most other members. Hoskinson wanted the Ethereum Foundation to be a for-profit company of which he would be the CEO.

Due to a group of difficulties between members, legal problems and a struggle of egos, Hoskinson ended up leaving Ethereum, to create his own platform and that’s how Cardano was born. 

The name cardano refers to the Italian mathematician Girolamo cardano, one of the most important scientists of the Renaissance, responsible for many fundamental discoveries in probability and combinatorics.



Cardano’s internal currency is called ADA, in homage to one of the first female programmers in history, Ada Lovelace.

It is important to note and avoid confusion, in that cardano is a platform for smart contracts and Ada is your cryptocurrency.

Cardano’s goal 

According to Charles Hoskinson cardano’s goal is to be much better than any existing blockchain project, he describes cardano as a third-generation blockchain. 

For some the first generation of blockchain is bitcoin, because it allows the direct transfer of value between counterparties without the need for intermediaries, it also works as a value deposit and as a unit of account.

However, the financial system does not consist only of money, there are other fundamental processes, such as financial services and all kinds of contracts, in that sense Ethereum represents a second generation of blockchain, by introducing smart contracts.

The third generation would be much broader, a kind of internet for the blockchain, among its objectives and problems that seeks to solve we have:

Cardano focuses on three fundamental pillars:

  • Scalability, cardano criticizes the echo that bitcoin or Ethereum operations are not scalable, because the number of operations that can be performed per minute is verylow, i.e., the speed of the network should grow with form to demand. That is why Cardano does not use the proof-of-work system, but a proof-of-stake protocol.
  • Interoperability, cardano wants to build a universal platform, in which other currencies can be integrated, since currently there is no way to perform cross-chain transactions between the different cryptocurrencies, cardano plans to build a kind of internet where these direct operations are possible.

Sustainability, cardano is the first blockchain in the world that operates with peer review, that is to say whose changes in protocol are subject to a review.

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