The beginning of Crypto
First there was bitcoin. Then many coins followed. The concept behind bitcoin is quite revolutionary. The blockchain allows for things that have not been possible before.
Though, since the first time I heard of bitcoin and later of ethereum, I also had my doubts. The ideas and principles are great, though the bitcoin itself has still so many problems and uncertainties. Some of the major problems that bitcoin faces are the high transaction fees, the massive energy consumption, the problem of hard forks, the lack of a good system to make changes on the network or in the protocol.
The Cardano (ADA) Project
Cardano positions itself as a third generation cryptocurrency. They aim to solve exactly the problems mentioned before that bitcoin faces. They aim to improve 3 main things:
- Scalability
- Interoperability
- Sustainability
Scalability
Bitcoin faces many problems as soon as the network gets more crowded. The transaction speed goes down and fees increase enormously. Though the lightning network could be helpful at this point. In January, I sent some bitcoins and put the fees at $2 approximately. Quite a high fees already I would say. Finally, 11 days later, my transaction arrived... That is so incredibly slow. Cardano aims to solve this problem, partly also by using a proof of stake algorithm.
Interoperability
At the moment there is a huge amount of currencies. It is quite difficult to exchange them without the use of a centralised exchange platform. This is quite impractical. That is why Cardano aims to develop the possibility of cross-chain swaps that allow to exchange one currency for another.
Sustainability
How can a coin keep existing in a sustainable way? Cardano aims to create a system that funds itself and that also allows for voting on the network for important decisions. It allows for change without the need of a hard fork, in the way the coin can be more solid.
Conclusion
The Cardano Project is literally the first cryptocurrency project that I am really convinced by. They have a great team of researchers, bright idea and a solid development. I'll write more about their development team soon!
I am really curious what is going to happen in the coming months and years with this project!