Cardano’s Unique Approach to Development Employs Academic Research and Scientific Philosophy
Oct 15, 2018
- Cardano (ADA) is a unique smart contract platform that is built by a team of leading academics and engineers that employs scientific philosophy and peer-reviewed academic research to achieve scalability and security through a form of layered architecture.
- Three separate organizations work full-time on the development and upkeep of Cardano:
- The Cardano Foundation, a non-profit and regulated entity of Cardano that is responsible for the standardization, protection, and promotion of the Cardano Protocol technology.
- Input Output Hong Kong (IOHK), a research and development company founded by Jeremy Wood and Chris Hoskinson, the co-founder of Ethereum and initial conceptualizer of Cardano. IOHK has been contracted to build, design, and maintain Cardano through 2020.
- Emurgo, a Japanese company responsible for the development, support, and incubation of commercial ventures who want to use Cardano Protocol technology to revolutionize their industries.
- Chris Hoskinson, initial conceptualizer of Cardano and co-founder of Ethereum, believes that the blockchain industry has gone through three generations:
- Generation 1, where individuals were seeking a method to create and transfer some form of money between two people without the use of middlemen. Generation 1 is defined by Bitcoin (BTC), which solved this issue.
- Generation 2, where developers began to explore ways to exchange property, financial instruments, or anything with value. The development and use of smart contracts by platforms like Ethereum and EOS define this generation and address ways to transfer more complex stores of value, however, a consistent problem has arisen in this generation due to lack of strong provisions for scalability on these platforms -- Ethereum and Ethereum Classic, for example, were forced to split after a hard-fork due to bad governance, according to Hoskinson.
- Generation 3, as defined by Hoskinson, aims to solve problems associated with scalability, interoperability, and sustainability. Cardano’s employment of peer-reviewed academic research and scientific philosophy is geared towards addressing these problems.
- To address issues of scalability, Cardano follows a unique proof-of-stake algorithm, called Ouroboros, that divides the election process into three phases to achieve consensus; these three stages include the commitment phase, the reveal phase, and the recovery phase.
- To address interoperability, Cardano plans to develop an “Internet of blockchains” that leverage sidechains to serve as an ecosystem where cryptocurrencies can flow seamlessly between each other without the need for centralized exchanges. Please see our blog post from last week, “Blockstream’s Liquid Sidechain may Unlock Bitcoin’s Full Potential“ where we discuss sidechains, specifically the recently launched Liquid sidechain for Bitcoin, in further detail.
- To address issues of sustainability, Cardano is attempting to plan for its future development and growth through the creation of a treasury fund. The treasury fund is funded by small deposits taken from each block reward issued after a block is added to the main blockchain. Stakeholders of the Cardano ecosystem then have the opportunity to vote in ballots to approve or disapprove of grants for development goals.
- Cardano’s development team has outlined a 5-stage roadmap to achieve the goals of Cardano. If Cardano successfully solves problems of scalability, interoperability, and sustainability that exists on platforms like Ethereum and EOS, then Cardano may truly be the decentralized application (dApp) platform of the future. Peer-reviewed academic research and the scientific philosophy employed by Cardano developers adds hope that Cardano will achieve its goals, however, only time can decide the dApp platform of the future.
Cardano (ADA) 1-Year Price Chart