Cardano - The 3rd Generation Blockchain

Posted by Deb Williams - Editor on October 10, 2019 - 4:52pm Edited 2/15 at 4:11am

Cardano - The 3rd Generation Blockchain

- Where Philosophy Meets Science And Technology

What is Cardano?

Cardano is not just another altcoin. It is an actual blockchain similar to Ethereum as it is a smart contract platform, however, Cardano offers scalability through a layered architecture. Cardano’s approach is unique in this space itself as it is built on scientific philosophy and peer-reviewed academic research. It was conceptualized by Charles Hoskinson who is a co-founder of the Ethereum Blockchain and a number of other projects.

While Ethereum does an admirable job as a smart contract platform, according to Hoskinson it is a second-generation blockchain and needed evolution. What makes Cardano extremely remarkable is the absolute amount of care that goes into its preservation. There are three organizations that work fulltime to develop and take care of Cardano. They are, 

The Cardano Foundation  
IOHK (Input Output Hong Kong)
Emurgo

These three organizations work in synergy to ensure the development of Cardano is tracking at a good pace. 

 

The Origin Of Cardano

Cardano started as a project in 2015 with real high aspirations. The model they chose to follow was a darker program that was a very risky, big, sexy, juicy, huge problem according to Charles Hoskinson when he spoke at the Cardano 2nd Anniversary meetup in Bulgaria on September 28th, 2019. The project focussed on lots of high-risk high return science with a view to see where it took Cardano and somewhere along this journey try to trim it down to a point where the company could build a product and commercialize it. 

After untold hours of research, enormous testing of protocols, 40 white papers and attending many rigorous academic conferences and highly scrutinized. Cardano found its niche and is positioned to be a force as its addressing the ongoing issues other cryptos and blockchains are inherently having.

Cardano was launched in Sept of 2017 Cardano and now on its 2nd anniversary is leading the charge doing great things in terms of development, communication and building a better crypto project.


The Three Generations Of Blockchain

Ist Generation Blockchain. Bitcoin and Money Transfer  - People were asking the questions, Is it possible to create a form of money that can be transferred between two people without an intermediary? Also is it possible to create a decentralized currency on a distributed ledger like a blockchain? Satoshi Nakamoto answered these questions by creating Bitcoin. However, there was a problem with Bitcoin and for all first-generation blockchains in that, they only allowed for monetary transactions and there was no way to add conditions to those transactions. 

For example, Tom can send Jerry 2 Bitcoin for a service he provides, but he couldn’t tell Jerry that he will get the payment only when he provides the service. These conditions would need extremely complicated scripts. “Something” was needed to make this process more coherent. 

  
2nd Generation Blockchain Ethereum and Smart Contracts - The “something” that was needed was a smart contract. Smart contracts assist you in exchanging money, property, shares or anything of value in a transparent, conflict-free fashion without the services of a middleman. Ethereum demonstrated to the world how the blockchain can evolve from a simple payment system to something a lot more powerful and significant. 

However, this generation had some issues too. As many more interesting use cases were being created they were obtaining much more recognition. The issue was the fact that this generation of blockchain ultimately didn’t have a good foundation for scalability. Also, the governance system was not particularly that well thought through. According to Hoskinson, the Ethereum and Ethereum Classic split is a prime example of bad governance.  


3rd Generation Blockchain - Cardano - Through years of experience along with trial and error, Charles Hoskinson knew that the blockchain needed to evolve even more. He took the positive elements from the first two generations of blockchain and added some elements of his own. Hence Cardano was born. The three elements Cardano needed and wanted to solve where,

  • Scalability
  • Interoperability
  • Sustainability  

I will get to the nuts and bolts of how Cardano will approach these three elements in the next article. It’s mind-blowing! It has to be said that Cardano is unique because it is essentially built on scientific philosophy and peer-reviewed academic research. It has the ultimate goal of being “High Assurance Code” and all the engineering that goes into it will ensure that there is a much higher belief in the quality of code used. This will prevent future cases like the ETH-ETC split from occurring, according to Hoskinson. At the end of the day, the project will be 250 times more decentralized than Bitcoin with much less power needed to run it, approximately 10 kilowatts to run a global system. This is classed as a miracle of science and the miracle of good engineering. 


The Philosophy Of Cardano

Cardano is a project in an effort to change the way cryptocurrencies are designed and developed. The overall focus beyond a particular set of innovations is to provide a more balanced and sustainable ecosystem that better accounts for the needs of its users as well as other systems seeking integration.

In the spirit of many open source projects, Cardano did not begin with a comprehensive roadmap or even an authoritative white paper. Rather it embraced a collection of design principles, engineering best practices, and avenues for exploration. These are taken directly from the Cardano website and they include the following, 

  • Separation of accounting and computation into different layers
  • Implementation of core components in highly modular functional code
  • Small groups of academics and developers competing with peer-reviewed research
  • Heavy use of interdisciplinary teams including the early use of InfoSec experts
  • Fast iteration between white papers, implementation and new research required to correct issues discovered during review
  • Building in the ability to upgrade post-deployed systems without destroying the network
  • Development of a decentralized funding mechanism for future work
  • A long-term view on improving the design of cryptocurrencies so they can work on mobile devices with a reasonable and secure user experience
  • Bringing stakeholders closer to the operations and maintenance of their cryptocurrency
  • Acknowledging the need to account for multiple assets in the same ledger
  • Abstracting transactions to include optional metadata in order to better conform to the needs of legacy systems
  • Learning from the nearly 1,000 altcoins by embracing features that make sense
  • Adopt a standards-driven process inspired by the Internet Engineering Task Force using a dedicated foundation to lock down the final protocol design
  • Explore the social elements of commerce
  • Find a healthy middle-ground for regulators to interact with commerce without compromising some core principles inherited from Bitcoin


 

Why Are We Here?

Below are excerpts from a Keynote Speech made by Charles Hoskinson, heading the Cardano Project. Passionate reasoning as to why we are in need of major change for the betterment of all on a global scale and its coming.

“The reason why we’re here and why this industry exists is because the world is changing. The philosophy of the world is changing, the way the governments work is changing due to the pressures of instantaneous, instant availability of information and value from the internet and also from globalization. We no longer live in our little silos or hierarchies with standard narrative fictions that have existed for centuries. The people in 3rd world countries can have just as much impact on the world as the people in the United States now. They have the same access to information as the rest of the world. This is changing everything, it’s creating friction and is why we have upheaval and unrest, financial collapses, etc. 

The point of our blockchain and crypto industry is we are providing a toolbox, a collection of visions of where we can take the world. Where we can collectively decide on how to solve problems whether it's environmental, governance, wars or resource allocations, without there being some central country in charge. Or without building some giant meta government that gets rid of a nation-state. 

The magic of the blockchain industry is that we in a completely decentralized, libertarian private way are having conversations about re-inventing money, consent, and property rights, in fact, the very structure of the world. The point of Cardano has been to be a model of how to do this.” 

As a whole, the protocol’s design is geared towards protecting the privacy rights of users, while also taking into account the needs of regulators. In doing so, Cardano is the first protocol to balance these requirements in a nuanced and effective way, pioneering a new approach for cryptocurrencies. 

Charles Hoskinson also pointed out that by definition, decentralized meant that no one was in charge and no one unilaterally could decide. However, for it to take the shape of a sustainable system, there should be clarity in terms of “who pays and who decides the future”. 

“...so basically if you're going to decentralize the system and hand it over to the people you need to build up a critical mass of people who are capable of running the system. There are two ways of doing this, you can just fork and say good luck, everybody, bye-bye, or you can go ahead and build a safe sandbox, and pay people in that sandbox, allow businesses and knowledge and domain expertise that build up within in it and at some point when you bubble over and get a critical threshold you can pull it into the main system.”  

In addition, while the platform has been solidly composed, Cardano also recognizes the need for it to evolve and adapt to changing needs. Consequently, they have designed a system that can be upgraded by way of soft forks, and are installing a treasury system that will ensure the sustainability of the protocol.



What’s In It For Markethive?

With Cardano’s latest technology resolving present-day blockchain issues, it makes sense to switch to the Cardano blockchain which will be ready in 2020. Markethive will still have its own blockchain but with the support and protocols of an exceptional 3rd generation project. Let’s face it, technology doesn’t standstill. It’s always progressing finding new and better ways to improve systems and this is a good thing. 

This negates any problems with scalability as Markethive and its coin grows, unlike Bitcoin and Ethereum. This also speeds up the development of the wallet and fits in perfectly with Markethive’s plans of quantum computers.  Markethive is currently on Cardano’s sandbox platform, testing the system, getting ready for the blockchain launch next year.  


Conclusion

Cardano is not only built on steadfast philosophy but also on dedicated science. That alone gives it a significant edge over its competitors. Being lead by Charles Hoskinson only adds more credibility. The platform is multilayered and gives the system the elasticity to be easily maintained. Cardano uses a Proof-of-Stake system, reducing the number of electricity requirements and improving its scalability. Another feature of Cardano is its Recursive InterNetwork Architecture that allows for the existence of a subnetwork within the main network, which also makes it easier for a network to grow.

Cardano aims to become an “Internet of Blockchain,” making it possible for all cryptocurrencies to exist side by side and be converted from one to another without intermediaries. Cardano will also allow users to attach metadata to their transactions if they want to, making the network friendlier to banks and governments.

Completely open-source and patent-free, Cardano was built in a spirit of collaboration. And engineered for efficiency and scalability, the Cardano ecosystem is developing out into the most complete and most useful cryptocurrency and blockchain ever constructed.

 

ecosystem for entrepreneurs

 

Next Cardano Article - CARDANO SOLVING PROBLEMS The Three Elements

 

Deb Williams 

A Crypto/Blockchain enthusiast and a strong advocate for technology, progress, and freedom of speech. I embrace "change" with a passion and my purpose in life is to help people understand, accept and move forward with enthusiasm to achieve their goals. 

 

 


 

thanks for the information Deb about Cardano. I am an early investor and still following their progress. I'm not sure if their blockchain will be ready in 2020 but maybe a testnet. Time will tell :) Thanks
October 10, 2019 at 5:28pm
If this technology is implemented later we will find out as effectively as whether this latest cardano technology. And whether that could trigger an increase in Cardano prices. We wait.
October 10, 2019 at 7:34pm
Thanks for bringing us up to date on Cardano
October 10, 2019 at 10:57pm
Deb thanks for the awesome article on Cardano glad I invested in it. The future looks bright
October 11, 2019 at 1:08am
Thanks for updated us on the blockchain and Cardano
October 11, 2019 at 1:16am
We live in amazing times and we are right on the cusp of a major evolution.
October 11, 2019 at 2:22am
Sounds like Markethive has made a very wise decision switching to the Cardano blockchain in order to negate any problems with scalability and speed up the development of the wallet - next year will be an exciting time.
October 11, 2019 at 6:14am
hi
October 11, 2019 at 9:23am
wow, impressive. Cant wait for markethive to get on Cardano. I love that markethive is linking with top notch parties in the blockchain space, and this puts the platform at the top.
Many thanks Deb for the very informative blog.
October 11, 2019 at 9:44am
Markethive is looking to be as current as possible when it comes to technology of the blockchain! Markethive is trying to stay ahead of the curve, and bringing the best of what's available for our security, and privacy. Building a great company takes time, and patience as well as you to help continue to grow our community.
October 11, 2019 at 1:40pm
Entrepenaur ONE is the way to go in this adventure.
October 12, 2019 at 7:57am
hello
October 14, 2019 at 7:26am
I like the idea of the metadata tags, do we know what the tags are that are allowable? Allowing for banks and governments maybe the best thing for blockchain in general, because making it easy for them to adopt really means more money back in our pockets and higher % adoption rates for general use.
October 16, 2019 at 4:53am
Interesting article... always good to follow the evolution of blockchain. Thanks, Deb!
October 28, 2019 at 3:58pm
I love The Blockchain.
October 29, 2019 at 2:36am
Agradezco el poder recibir esta información y saludo con mucha esperanza el futuro que ya esta aqui. Quisiera saber, de ser posible, su parecer sobre el proyecto Traxalt, impulsado por Airbit Club, el cual promete soluciones similares a Cardano y que estara listo en pocas semanas para salir al mercado sobre su sistema Blockchain de Stellar.
Agrdeceria mucho recibir su opinion al respecto.
Infinitas gracias
November 10, 2019 at 11:00pm
Hola Jose. Bienvenido a Markethive. Investigaré este proyecto y le haré saber mi opinión. Gracias.
November 11, 2019 at 1:00am
Infinitas gracias.
La opinion de una persona como usted es muy valiosa para mi.
November 11, 2019 at 9:49am
outstanding thank you
March 6, 2020 at 9:55pm
Amazing post
July 24, 2020 at 6:32am
super info thanks
July 24, 2020 at 6:33am
Cardano appears to be on the right track
October 22, 2020 at 4:33am
I like it a lot and I'm interested in Cardano.
February 25, 2021 at 10:14pm
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