The blockchain industry is a potentially transformative technology that is being hampered by issues like lack of experimental software with unproven security, lack of regulatory oversight, poor governance that provides no room for scalability among other issues. With the launch of the Cardano protocol, things are about to change in the cryptocurrency world and the blockchain industry. The aim of Cardano is to solve all the issues that hamper the transformation of the Blockchain industry.
What is Cardano?
Cardano protocol is a project that aims at solving the problems in the blockchain industry. It is a next-generation blockchain with privacy and regulations for democratizing finance in emerging markets and for a creating new decentralized economy within the already existing market. Cardano addresses the need to get protections and oversight whilst through innovative layered architecture. It helps in maintaining consumers’ privacy and protection in all transactions under the protocol and the whole of the blockchain. The protocol uses software stack that is flexible and scalable. The software stack is developed with rigorous academic and commercial software standards.
Who is behind the project?
Cardano is led by three distinct entities that have independent teams and great leadership. The foundation of the protocol acts as the promoter, educator, and the standards body. It takes care of the Cardano protocol and all the applications on the platform. The Cardano foundation also talks with regulators about everything that is involved in the protocol. IOHK is the second entity that is involved with the Cardano leadership. IOHK is an engineering company led by founders Jeremy Wood and Charles Hopkinson. The third is Emurgo. Emurgo integrates and incentivizes commercial ventures for the Cardano blockchain.
Cardano uses it ADA token for exchanges and transactions of the platform and others that accept the token. Token holders can vote on how to change the protocol, reducing the potential for fragmentation and capturing stakeholder’s intent. Updates to the software are made through soft forks. Every ADA holder can take part in the governance of the platform since the governance has been carefully designed to allow token holders to take part.
To last longer in the blockchain industry, Cardano requires funding for update mechanism. The protocol uses a treasury system to allocate a percentage of the block rewards to a pool of capital, the capital cover the cost deemed necessary for the network and a voting system is used to decide what should be funded on the platform. Things to be funded include venture capital, competing development teams, marketing efforts, and Hackathons among others.