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Understanding Cardano & Ouroboros

With the current upcoming trend in the world of cryptocurrency, every developer is always trying to make a difference. That has led to the development of new cryptocurrencies. Cardano is one of them. This cryptocurrency has gained fame due to it being listed among the top 10 by market capitalization. Only a few new cryptocurrencies have been able to make it to this big leagues.

However, the white papers of this cryptocurrency are quite difficult to understand. I’ll try break it down for you in the best way possible. In this article therefore, we are going to discuss the history of the Caradano and try to breakdown a few of its elements. This will help in the overall understanding of how it functions.

History of Cardano ADA

Cardano (ADA) is a cryptocurrency that is decentralized in terms of its organization and has the ability to deliver more advance features. The cryptocurrency still maintains a smart protocol as compared to the other cryptocurrencies.

The idea of this cryptocurrency was founded by the CEO of Ethereum, Charles Hakinson who envisioned it to be the next generation in the cryptocurrency world. The concept was first documented in 2015. The founder saw glitches in the current cryptocurrencies and resulted in to making a different and better cryptocurrency that would change the future. This was especially after his study on the bitcoin and Ethereum.

The sole foundation of this currency is based on;

  • Intensive peer to peer research accompanied with academic input
  • It honors its predecessors and builds up on their failures as well as successes.
  • It is capable of handling the future world of cryptocurrency

The pillars of this cryptocurrency position it in a better place to learn from the mistakes of the different cryptocurrencies and build up on its future. You can actually see the brilliance and dedication of the developers of this cryptocurrency out of its foundation.

Why focus on the past and other cryptocurrencies that are obviously based on past technology? Well, this is not the first crypto to do so. Almost all cryptocurrencies have an inspiration from a different one for example Litecoin which improved on the bitcoin and actually is among the top dogs in cryptocurrency world. Cardano focuses on not just one coin but all the previous cryptocurrencies with the aim of improving on them in just one crypto.

The organization has different systems which include;

IOHK – this is the academic department of the cryptocurrency that seeks to provide information to the users while also studying the various blockchain patterns for maximum efficiency.

The Cardano Foundation – this is the section where members are dedicated to improving the different protocols in the cryptocurrency and any further improvements in its system.

Emurgo – In this section, the member is dedicated in the commercial section of the organization. They are considered as the money makers of this cryptocurrency. They nurture new block chains and seek for credible partnerships aimed at making the cryptocurrency to flourish.

The Cardano wallet ADA

When you consider purchasing this cryptocurrency, you will obviously need an online wallet to store and transact with it. Each cryptocurrency requires a specific wallet. In this cryptocurrency, you will require a wallet known as Deadulus. Typically, Deadulus is a software that is well engineered with state of the art security system. The software is developed by the IOHK department to protect the transaction and cryptocurrency put in them. The technicians behind this wallet are making improvements for the wallet to support not only Cardano but also other cryptocurrencies including Ethereum and bitcoins.

Ouroboros

This is a new algorithm that is used in the basic protocols of Cardano. The developers made a new algorithm that may be the future of cryptocurrency. This is because the algorithm has been proven mathematically that it is very secure and has no chance of compromise.

This was after the developers saw that the Proof of work (a method that relies on miners) routine in major cryptocurrency was too much labor intensive hence sorted out to a new method Proof of Stake ( a routine where only the people who own the currency validate the transactions through voting according to the size of their shares).

Unlike the previous attempts to make this new concept of POS come to live, the Ouroboros utilizes randomness and delegation as its core feature to ensure security and utility. As more and more investors get attracted to this new cryptocurrency, the Ouroboros scalability will be improved with time. The scalability of this cryptocurrency has been made in such a way that it is able to take up the numbers in future so we expect very little improvements made on the Ouroboros.

As you can see, Cardano is attempting to be an all in one cryptocurrency with secure, a platform for its predecessors and the future coins among other key features. Most of the previous coins have tried to achieve just one of these concepts. All in all, the promise of this coin to make this dream a reality is still yet to be proven. As much as the cryptocurrency is an amazing concept with new advances, every new improvement made on the currency will make the idea behinds its invention an impossible task to achieve.

It is important to note that there is a major difference between what Cardano will be and what it is to date. Right now it is just a cryptocurrency that is stored, distributed and pre-mined. In the near future it will be a combination of Ethereum, bitcoin, litecoin and Ripple (XRP) but this all depends on the successful integration of the Ouroboros, side chains, multi-signature wallets, effective partnership with other contractors and atomic swaps

In conclusion, Cardano has the base and structure of becoming the next big thing but faces a number of challenges. The biggest problem will be its intent to serve every function and the ability to make this concept a reality. Given the history of its founder and executive team, I have a feeling this cryptocurrency might actually work and will obviously change the future.

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Collins Valentin

Collins is a blockchain enthusiast, who spends his time between documenting the blockchain revolution in Africa, and writing the latest on the cryptocurrency space. Email: editor.news@blockpublisher.com

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