The Philosophy Behind Cardano
Cardano was developed by one of the earlier developers of Ethereum and seeks to improve on some of the faults of the prior. There are certain philosophies that have always been important in the Cardano ecosystem and some of these are the emphasis on expert advice and opinion which is why the development team of Cardano is made up of experts in various fields, the swift implementation of ideas from its inception to the final product and also the use of peer-reviewed material.
There has also been great emphasis on the improvement of the ADA cryptocurrency as suggestions and changes are voted on by stakeholders in the ecosystem. This means that stakeholders are very close to and have a hand in the development of the token that they spend.
Practical Applications of Cardano and Ada
Naturally, the first and most prominent use of the ADA token is simply as any other cryptocurrency which can be spent, sold or kept as an investment tool. However, the ADA has also served in certain situations as a voting tool of sorts.
Because the Cardano ecosystem is very focused on the community, they make use of the proof-of-stake system. This means that token holders have a say within the ecosystem in terms of changes and developments. Changes are proposed by the developers and those within the ecosystem take votes on it. This has been in a bid to avoid issues such as hard forks and developer disputes which have been seeing in tokens such as Bitcoin and Ethereum.
Cardano is considered one of the most advanced blockchains in the industry and has multiple uses. It makes use of a double-layered system with one layer being dedicated to the running of decentralized apps or D’apps as they are called and another one being dedicated to the ADA cryptocurrency.
Cardano can be used for the execution of smart contracts and the management of Cardano has stated that they are working on a specific smart contract language called Plutus which does not allow the altering of any contracts without the consent of the parties involved. Because Cardano is a double-layered system, their smart contracts are much more secure and once information has been stored on the blockchain ecosystem, is it practically impossible to alter. If a smart contract or decentralized application is created on the Cardano platform, it uses the ADA cryptocurrency as its native currency by default.
The management of Cardano has maintained strict control over the circulation of the ADA cryptocurrency as it is not very widely circulated but when bought, can be stored in their native wallet called Daedalus. The Cardano blockchain is used for the sending and receiving of the ADA tokens in a secure manner and those who wish to acquire ADA tokens must stake in order to acquire cryptocurrency. This is another one of the things that set Cardano apart from other blockchain ecosystems in that coins are not necessarily mined because it works with a proof-of-stake system. This ensures a layer of accessibility for those who wish to enter the ecosystem but still protects it against issues such as hard forks and developer disputes due to the fact that it runs on peer-reviewed scientific evidence only.
While many other cryptocurrencies seem to be aiming for dominance in terms of widespread use and mainstream adoption, ADA’s function seems to be primarily catered to the Cardano platform and its users.
Future Use Cases of Cardano
The Cardano project is a third-generation blockchain and along with its ADA cryptocurrency, is still in some of the early stages of growth and as such, its future is not set in stone. The ADA cryptocurrency is within the top 20 in terms of market capitalization and as the crypto industry matures, it is likely that the cryptocurrency will see more use overall. As for the blockchain, Cardano has many ambitious goals in terms of scalability and these are likely to unravel as time goes on. Scalability is perhaps one of the aspects in which Cardano is superior to other blockchains.
The management of Cardano has stated that in the future, the intent is for the blockchain to be able to process millions of transactions per second which is a level of scalability that is unprecedented. Cardano is also expanding its efforts as management has signed a memorandum of understanding with the US government in 2018 which will see the Cardano platform be used in the Agri-tech sector. This means that Cardano’s platform will likely be used on both a private and public scale. In terms of private use, Cardano would likely see a lot of use by private companies since their use of digital signatures and the ease of building smart contracts will likely endear them to private investors. Also, as decentralized apps are becoming more and more common around the globe, platforms such as Cardano will likely see an increase in use and maybe even compete with bigger decentralized app platforms such as Ethereum and EOS.
