Cardano is one of the world’s major cryptocurrencies in terms of market capitalization.
What makes Cardano stand out from the rest is that it has better security and offers scalability. Following the success of Ethereum as a smart contract platform, newer additions in the blockchain industry need to do better. Cardano for one has done this remarkably especially with its ability to handle the amount of focus. Cardano is handled by 3 major parties which are:
- Cardano Foundation
Background of Cardano
The man responsible for Cardano is Charles Hoskinson. He is one of the co-founders of ETH or Ethereum. To date, the 3 parties involved are fully involved in maintaining Cardano. The Cardano Foundation is actually a non-profit organization. It is a regulated organization fully responsible for Cardano. Its job is to ensure that the Cardano Protocol technology is standardized, protected and well promoted. Hoskinson and Jeremy Wood will in 2015 establish Input Output Hong Kong, or IOHK. This company is already contracted to maintain Cardano until the year 2020 while continuing its efforts in research and development. Meanwhile, Emurgo is the main company that funds IOHK. This was put together in a 5-year contract.
Cardano is in the middle of the action involving 3 generations of the blockchain.
- The first is the one involving Bitcoin and the transfer of money. This is at a time when people wanted to transfer funds without using any intermediaries.
- The second was when Ethereum and Smart Contracts came about. While the first generation created the technology, it is in Smart Contracts that such a phenomenon becomes possible
- Cardano forms the third generation. This is where the positive factors of the first 2 generations were taken into consideration and enhanced to evolve into Cardano. As such, Cardano can now offer sustainability, scalability and interoperability
If Ethereum made such an impact after Bitcoin, Cardano is set to make another after Ethereum.
Whenever a celebrity or rock star endorses a certain cryptocurrency, it will surely set the media on the blaze. And if it is a rock star as big as Gene Simmons from KISS, who recently purchased $300,000 worth of the Cardano cryptocurrency, it surely means something big is on the way.
Growing up the ranks
Started in 2017, Cardano was created to compete with the Ethereum blockchain and become an alternative for investors. This blockchain was supported by the IOHK or Input Output Hong Kong. Charles Hoskinson is the CEO of IOHK and is the creator of Cardano. He is also part of the team that founded Ethereum.
Besides Ethereum, Hoskinson was also behind BitShares. Development for the Cardano blockchain started as early as 2015 and was rolled out by 2017. The intention was initially to keep Ethereum a non-profit entity. It was over this dispute that he left Ethereum and then founded IOHK. The main intention of IOHK was to develop Cardano which got its name from Gerolamo Cardano. ADA was named after Ada Lovelace.
Current bullish market
At the time of the launch, ADA had then entered the market with a $600 million market capitalization. This would grow exponentially where it reached $10 billion by the end of the first year. Cardano’s market capitalization would then triple in 2018 for a short while due to the market pressures at that time. It would then return back to its $10 billion market cap and has since been very stable and steady.
What Cardano seeks to do is to overcome the major issues that the main cryptocurrencies are facing. With Cardano, investors can enjoy a safer and more scalable platform as compared to Ethereum and are faster and more flexible as compared to Bitcoin.
Cardano – 2021 Updates
The first quarter of 2021 has been bullish so far for the cryptocurrency market. With BTC hitting the roof, it is no surprise that the others are following suit. Investors have been buying up ADAs in the market. In third place, it is now higher than USDT, the Stablecoin Tether which is backed by the US Dollar as well as the BNB from Binance which are strong players in the cryptocurrency market segment in recent years.
In February 2021, the price of Cardano was $1.30. This was to be the highest it has ever been since 2018. ADA, the native cryptocurrency for the Cardano blockchain then rose to become the third-largest in terms of market capitalization. This is a whopping $39 billion.
IOHK and Ethiopia’s government collaboration
IOHK has in April 2021 announced that it has forged a partnership with the government of Ethiopia, which will further enhance its presence in the Africa continent. This news came about after a series of market movements involving cryptocurrency prices in the middle of the second quarter of 2021.
This collaboration will see a blockchain-based education system being implemented and it would surely be among the first of its kind globally. With the new system, the national student and teacher systems will be managed through the blockchain. IDs will be used with grades being verified digitally and performance monitored remotely. This will be the nucleus of the country’s Digital Transformation Strategy Digital Ethiopia 20215 initiative. Through this, the Atala PRISM blockchain ID will be the first to issue IDs under the strategy with a view to adopt more of Atala’s products.
According to IOHK, the authorities will now be able to create records of the educational performance of the 5 million students in the country which will be tamper-proof. This will involve some 3,500 schools and more than 750,000 teachers. Besides that, it would enable better targeting of educational resources while getting to the bottom of under-achievement in terms of locations and the causes. Among the major issues that will be addressed include:
- Giving students qualifications that are blockchain-verified. This will surely reduce fraud cases when it comes to qualifications and can be used for job applications.
- Employers could potentially verify the grades that job applicants submit without having to go through external agencies.
- Teachers and students will be provided with dedicated internet access and tablets. They will get instant access to academic records.
- The IDs will be integrated with its Learning Management System that will work together in a machine learning platform where students can now have personalized teaching and other features.
- With these efforts, 80% of students who are in the rural areas can now have access to more higher education and employment opportunities.
Moving forward, this will surely be a project worth emulating by other countries because of the benefits it could potentially bring. With blockchain, there is no need for third-party agencies to verify personal data while data privacy can be safeguarded better.