Cardano, The Blockchain for Changemakers?
What is Cardano?
Cardano is supposedly a decentralized third-generation proof-of-stake blockchain platform.
Cardano might seem similar to other blockchain platforms like Ethereum. But it is not. It has pretty much 0 dApps on it right now. I wanted to use it so that I could write a good article, however there are no smart contracts yet - something Ethereum has had since 2015 - so there isn’t really anything on Cardano to even begin a comparison.
According to Cardano, it distinguishes itself from others through a commitment to peer-reviewed scientific research as building blocks for updates to its platform. It has mainly planned to release blockchain products to help with identity management and product traceability.
The organizations behind Cardano have released three products: Atala PRISM, Atala SCAN, and Atala Trace. The first product is marketed as an identity management tool that can be used to provide access to services. For example, it can be used to verify credentials to open a bank account or eligibility for government aid. The other two products are being used to trace a product’s journey through a supply chain. An important distinction is important to make here: just because Cardano have released a product does not mean that anyone is necessarily using it, or deriving any value from it. Perhaps this is to come in the future? I wouldn't count on it.
Cardano is a blockchain with a cryptocurrency called "ada." It is used to streamline and simplify processes that require the collection of data from multiple sources. Please watch this youtube video to understand blockchains better: https://www.youtube.com/watch?v=SSo_EIwHSd4
The hope is that blockchains can be used to track and audit a product’s manufacturing processes from provenance to finished goods and, potentially, eliminate the market for counterfeit goods.
How is Cardano governed?
In theory, Cardano is defined by its community. Its governance model shows that true democracy - in which individuals are incentivized to play a role and votes are immutably recorded - is possible. It is a way for token holders to decide the future of a platform, and for the community to dictate the use of Cardano’s treasury funds. The three big organizations behind Cardano’s development are IOHK, Cardano Foundation, and EMURGO. The first two are non-profit foundations and the third is a for-profit entity. The IOHK, which is responsible for building Cardano, works with a team of academics spread out across the world to produce research and review platform updates before implementation to ensure that they are scalable.
In reality, there are a small number of organisations and individuals that wield a large power over what is happening in the Cardano ecosystem. I’m not prepared to talk about who/why this is, but hopefully this can change as Cardano grows.
Cardano is (hopefully) developing a smart contract platform that will serve as a stable and secure platform for the development of enterprise-level decentralized apps. The belief is that this platform should be ready imminently within the next few weeks. If it is not, serious questions will be asked about the legitimacy of the Cardano project.
Cardano Tokenomics
In theory, a late stage entrant to the blockchain space such as Cardano can utilise new developments such as layered architecture to improve scalability, security, and sustainability. In this way, they create more usefulness, address flaws, and rectify inefficiencies.
In reality, the network effect of Ethereum being used by developers and users over the last 6 years create a strong barrier to entry that Cardano may find difficult to overcome.
Who knows what the future will hold
Cardano developers vs other ecosystem:
With Ethereum still being the most actively developed Blockchain protocol with 866 average weekly commits, Cardano comes second as it witnessed a decline over the year with 761 and Bitcoin with 441. Ethereum also leads the monthly active developer count, with 220 monthly active core developers on average, followed by Hyperledger, Cardano and Bitcoin having 149, 144 and 103 active core developers on average respectively. With its testnet sitting at the vanguard of the network's development, Cardano provides a sandboxed environment for continuing innovation, harnessing the power of our community to iterate and improve.The Cardano testnet sits at the vanguard of the network's development. It provides a sandboxed environment for continuing innovation, harnessing the power of our community to iterate and improve.
Any questions / feedback? Would like to hear it and start a conversation
