Cardano is pursuing an offline solution for Cryptocurrencies
Cardano is pursuing an offline solution for Cryptocurrencies

By fklivestolearn | Technicity | 29 May 2020


The blockchain project is developing a crypto-native microchip that would be embedded within the devices

 

Cardano is an open-source, decentralized public blockchain & cryptocurrency project and the 11th largest by market cap. Input Output (IOHK) — the company behind the development of the Cardano (ADA) has its blockchain lab based at the University of Wyoming, to which it donated $500,000 earlier this year.

Cardano founder Charles Hoskinson said they chose the university since the state of Wyoming has one of the most progressive crypto legislation in the United States and the university was first in the entire U.S to treat ADA like U.S. dollars.

More recently, IOHK announced that it would be joining Hyperledger Project and World Wide Web Consortium (W3C)— where the former provides an umbrella platform umbrella for various enterprise-focused blockchain projects & the latter is an international community that develops web standards.

The recent partnership with Hyperledger will come in handy as IOHK’s contract with the Cardano Foundation comes up for renewal at the end of the year. The new proposal by IOHK is set to include a roadmap for creating an enterprise version of Cardano.

Currently, Cardano is working on developing a microchip that would enable cryptocurrency transactions even without internet access. The idea was conceived after Cardano (ADA), began exploring various supply chain use cases but soon realized that there were no chips on the market that could provide what it was looking — the features of embeddability, the ability to store cryptographic keys physically and whose production could be scaled inexpensively.

“You know, the whole point of Bitcoin was to go from cash to something that’s like cash online. But what if you want to go in the opposite direction? What if you wanted to go from a native cryptocurrency to something that has a cache like user experience? It’s very difficult to do without a hardware component.”

~ Cardano founder, Charles Hoskinson

Hoskinson emphasized that the new project would remain open source as the mother project so that benefit of such an invention is passed on to the whole crypto community. The proposed chip is expected to have a variety of use cases like the authentication and management of luxury goods, others include agriculture sector in the developing world.

Cardano believes that the success of cryptocurrencies hinges on its adoption by the developing countries, where cell phone penetration is high but the infrastructure is not that well defined. One way to look at this microchip is that it would give users the ability to convert virtual currency into physical money as we do right now.

Basically, you are replicating cash experience with virtual money securely. The proposed chip would be embedded into a phone case, where a private cryptographic key from one chip would be transferred from one phone to another, without the need to be online. The process would also provide the proof of erasure — making sure the private key only exists on the new device after the transfer.

Although an ambitious and long-term project, it could pave the way for solving a number of adoption problems for cryptocurrencies, especially in areas where the infrastructure is not as robust and the awareness of the technology is limited.

Originally Published on Medium

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fklivestolearn
fklivestolearn

Prolific Blogger on Medium with my own publication Technicity. Extensive trading experience in Forex & Stocks based on technical studies. Cryptocurrency trader and Enthusiast, Blockchain/Fintech Evangelist & generally just a Technology Freak.


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