Cardano. A top ten cryptocurrency project, backed by the brains of Ethereum but set up with a vision for the future. Cryptocurrency isn’t going to exist in this state forever, as the technology grows, so will each individual project. As it stands, Cardano promises an awful lot for the future and many now believe that Cardano is set to lead the charge for the next generation of cryptocurrencies, the time when cryptocurrencies and their projects migrate into a new purpose, with new uses, new values and a part of a more adaptive community.
Why does Cardano promise to lead the new generation of cryptos?
To answer this question, we need to step right back to the birth of Cardano and ADA. The founder of Cardano, Charles Hoskinson is also known as one of the founders of Ethereum. Therefore, Cardano was founded based on knowledge built through the Ethereum project. It’s got an academic prowess and started its life with real crypto experience, something that a lot of Cardano’s rivals are not lucky enough to have.
The main focus for Cardano is of course smart contracts, a concept that was developed through Ethereum. Because of this, Hoskinson already knows of the core issues with smart contracts that Ethereum cannot address, therefore going forward, the plan for Cardano is to address these issues. In essence, Cardano can and will fix Ethereum’s problems, helping it to stand out as a contender for the model crypto that will inspire a new generation of better and more efficient cryptocurrencies.
So, what problems does Ethereum face?
According to Ethereum World News:
“Some of the problems that cryptocurrencies are facing are: Scalability, Sustainability and Interoperability. Another very highlighted issue is communication between the network and outside forms of financial entities like banks or virtual networks. Standing behind the privacy idea of cryptocurrencies, it is very difficult to know where the tokens are coming when you transact or to communicate between the systems with the different codes in them. This was a major game changer for many that initiated an offering last year or this year when traders wanted to fun various startups like ICO’s. The invested money was needed to be explained to the bank where its coming from.”
And how will Cardano address these issues?
Now of course, Cardano isn’t a complete solution to Ethereum’s problems and obviously doesn’t solve each and everyone of Ethereum’s flaws just yet, however the argument here is that Hoskinsons experience is no doubt going to play a very key part in ensuring that the Cardano project remains innovative enough to overcome this and actually learn to challenge Ethereum’s issues. There are no quick fixes to scalability and sustainability issues, it’ll take time, but it seems that Cardano could be the project that is able to tackle these issues in the best and most efficient way.
According to Ethereum World News:
“Cardano here comes with its layer architecture structure making it stand out in safety and security of the smart contracts. As its divided into layers, the security is heightened as the processing done by the following layer [part] is made independently from the previous. Such the information is handled safely and not shared.”
After already nailing the security issues down, Cardano is proving it’s worth against Ethereum.
The second generation of cryptocurrencies
As I have mentioned, 2.0 cryptocurrencies will be those that address the problems faced today by many different crypto projects. This isn’t to say that new cryptocurrencies will be built upon flawless platforms, it is however to say that the problems of today will be addressed. What will this encourage? It’ll encourage new problems to surface. Once they are addressed and fixed, we could see a third generation of cryptocurrencies.
In the same way normal technology grows and develops (look at the iPod for example) new generations will be produced that make the products bigger, better and importantly, more attractive to customers.
Remember, cryptocurrencies are products that want to be sold to consumers, therefore they need to find resolutions and they need to improve with growing technologies to, otherwise like the iPod, they could simply fizzle out and be replaced by something else bigger and better (the iPhone).
According to Cardano:
“Cardano is a decentralised public blockchain and cryptocurrency project and is fully open source. Cardano is developing a smart contract platform which seeks to deliver more advanced features than any protocol previously developed. It is the first blockchain platform to evolve out of a scientific philosophy and a research-first driven approach. The development team consists of a large global collective of expert engineers and researchers.”
Cardano is the first such project to be built from enhanced scientific knowledge and actual blockchain experience. It wants to develop more advanced features and fosters an innovative attitude that is set to put Cardano on the map as the first of the second generation cryptocurrencies, of the likes that could one day surpass Ethereum and maybe even Bitcoin as the biggest and most notorious cryptocurrency projects.