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Cardano (ADA) Founder Sheds Light on Ethereum Classic

Cardano (ADA)–Cardano and IOHK Founder and Ethereum co-founder Charles Hoskinson has had a substantial impact on the direction of cryptocurrency. From his position in getting the second-ranked cryptocurrency by market capitalization up and running, to his creation of the Input-Output Hong Kong organization, which created Cardano ADA, Hoskinson has had has finger on the developmental pulse of the industry.

Speaking on the YouTube Channel Learn Crypto in an interview published Friday, Hoskinson gave his opinion on the Ethereum Classic (ETC) currency, a hard fork from Ethereum (ETH) which in part led to the creation of Cardano. Following his departure from the group of original Ethereum founders, a relationship that did not end 100% amicably, Hoskinson joined the Ethereum Classic team in 2016 to help guide the coin following its hard fork from ETH. The primary difference between ETH and ETC is that the latter promotes the idea of unrevisable, immutable blockchains. Following the The DAO hack, which essentially split the community of Ethereum, ETH Classic miners continued to trawl the original ETH blockchain–as opposed to participating in the new blockchain that returned ether to impacted investors. At the time, the move was hailed by equal parts admiration and derision. ETH supporters saw the move as a way to counteract the illegal theft of a hacker. ETC proponents felt that, while the hack was not to be celebrated, it was constitutionally wrong to the currency to revise the blockchain under any circumstance.

Hoskinson joined with the latter of the two, telling Learn Crypto,

“So…  I put my name brand and reputation on Ethereum and you know I went my own way but I still believed in this whole philosophy of the system.”

He goes on to expound upon his support for Ethereum Classic over ETH,

“I felt that you can’t go raise 18 million dollars and market something one way, and then when it’s inconvenient to you, you go change the terms of sale without the consent of the customer, and not a lot of customers participated. I think the vote was less than 10% participation and there wasn’t lot of time and it was just a knee-jerk decision.”

Hoskinson tells more about the conception of Ethereum Classic, speaking on the ease of which a developer can create a fork of a currency. However, he also relates how his experience with ETH and ETC set him up for the creation of IOHK and the Cardano ADA currency that followed. In particular, he highlighted the importance of currencies focusing on scalability, a feature that Cardano has been pushing for some time, in addition to higher TPS and a growing user base,

“Cardano’s trying to cover all three areas. So we started 2015 it was basically just a collection of concepts. We get about three years of research and development and now we’re in a position where we think we have a pretty good shot at being able to pull it off.”

In May, Hoskinson made somewhat controversial headlines when he called into question the massive market cap ascribed to Bitcoin and Ethereum. While not outright calling the currency worthless (as some outlets have run with), the IOHK CEO did find fault with what Bitcoin and Ethereum have done, or are in the process of doing, to deserve their spot at the top of the industry’s market capitalization,

“Why is anybody worthy of their positions in the market cap? Bitcoin is advertised as a payment system and a means of exchange, and then everybody who’s ever tried to use it for that, it’s been a miserable failure. They usually stop taking it, or they find ways to take cash, and through a creative structure like what Bitpay has done. Ethereum claims to be a world computer, but then CryptoKitties breaks it.”

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Cardano (ADA) Search Volume Spikes Following Coinbase Announcement

Cardano (ADA)–The eighth largest cryptocurrency by market capitalization continues to gain momentum following the landmark announcement by U.S.-based cryptocurrency exchange Coinbase.

On Friday, Coinbase made waves across the industry by announcing it’s exploration into five new cryptocurrencies: Basic Attention Token (BAT), Zcash (ZEC), Stellar (XLM), 0x (ZRX), and Cardano (ADA). While some cryptocurrency communities felt snubbed by the lack of mention, the five coins selected rejoiced over the potential exposure to 13 million customers and subsequent price appreciation that Coinbase listing would entail. 

On cue, all five cryptocurrencies experienced significant pumps in pricing following the announcement, as investors scrambled to buy the coins at a lower value than what they hoped would be offered from the outset on Coinbase. In addition to the price appreciation, Cardano experienced a wave of invigorating interest. Judging by the data published on Google Trends, Cardano is nearing a peak in search volume over the last 90 days, with interest more than doubling before and after the news tying ADA to Coinbase.

Prior to Friday, Google search volume for Cardano was exhibiting a typical fluctuation over time, with the currency’s interest trending below it’s historical average. However, following the announcement by Coinbase that they were exploring ADA, Cardano search volume displayed a sharp increase, doubling its trending output in less than 24 hours.

Google Trends has been used as indicator in the past for both price interest as well as judging the popularity of the coin. While Google’s published data tends to lag several days behind actual search numbers (at least on the more reliable 90+ day charts), it does give an indication that Cardano is achieving renewed interest among investors and cryptocurrency enthusiasts. An increase in search volume has almost universally correlated to an in increase in price for a coin, with Cardano pushing a 22% appreciation in value since the Coinbase release. Search volume tends to have a snowballing effect. As more investors see the price of a currency rise, they start searching for general information on the investment or a reasoning for the price pump. This leads to greater interest in the coin, in addition to more investment dollars. While Google Trends and price appreciation suffers from a “chicken or the egg” debate (do coin prices rise because of interest, or vice-versa?), Cardano’s steep increase in search volume is good for both short term price appreciation and long term adoption.

Cardano, through the efforts of the IOHK team and CEO Charles Hoskinsons, has developed a strong media and community presence, hosting a regular dialogue with both investors and enthusiasts to keep  them up-to-date on coin news. Of the five cryptocurrencies under exploration by Coinbase, Cardano has quietly put together an impressive list of fresh news and development, ranging from the applications of Ouroboros in solving the issue of Proof of Stake, to a recent trip to the Google offices in London, sparking speculation over a possible partnership.

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How Cardano (ADA) Plans to Solve Proof of Stake

Cardano (ADA)–Coming off the positive news of a potential partnership with Coinbase, Cardano’s ADA has benefited from a pump in price over the weekend.  Investors and enthusiasts alike seek to reverse the losses of 2018’s bear cycle, both in anticipation of the buying power of Coinbase’s 13 million+ customers and also in appreciation for what the IOHK team has been able to accomplish in advancing  their cryptocurrency.

While the appreciation in price has been a welcome change for investors suffering through 90% loss in value since January’s all-time high (a figure in-step with most market losses), the team behind Cardano is more excited for how their innovative protocol will bring change to the landscape of Proof of Stake. Named Ouroboros, the Cardano protocol seeks to reinvent Proof of Stake blockchain verifying, while also ensuring the security of user funds.

In April, IOHK Founder and CEO (the company behind Cardano), tweeted a research paper lauding the improvements of his company on bringing the level of sophistication of PoS to the more mature field of Proof of Work (what Bitcoin’s blockchain functions on).

As Hoskinson points out in a following tweet, one of the immediate benefits of Proof of Stake over its competition PoW is the fractional amount of computing power and electricity required to secure the blockchain. While Bitcoin and other PoW currencies continue to grab headlines for their substantial electricity drain by miners, Cardano is looking to offer efficiency in addition to security,

The underlying idea of PoS is that users vote or “stake” with their coins on the network, thereby accruing interest–in the form of freshly minted, distributed tokens at regular intervals–for their participation. The protocol incentivizes a cryptocurrency userbase to be active on the network, helping with the facilitation of transactions and securing the blockchain, while not requiring the processor-draining power of PoW. Given the looming reality of a global population invested in crypto, PoS is being examined as a more sustainable route to securing blockchains. As the aforementioned research paper states,

Proof-of-stake-based (in short, PoS-based) blockchains aim to overcome scalability, efficiency, and composability limitations of the proof-of-work paradigm, which underlies the security of several mainstream cryptocurrencies including Bitcoin.

However, until this point, Proof of Stake has remained a largely unproven protocol, at least in comparison to PoW. Given the market share and length of the time that Bitcoin has been functioning as a currency, PoW has had the time to mature in both technological development, as well as being proven secure for blockchain transactions and consensus. PoS lacks the same level of trialing, but IOHK believes they have silenced the doubts related to staking through Ouroboros. Speaking to CoinDesk, IOHK Chief Scientist behind Ouroboros Aggelos Kiayias had this to say of his protocol,

“Contrary to [other proof-of-stake protocols], we developed Ouroboros together with a formal proof of security that the protocol indeed captures the security properties of a robust transaction ledger like bitcoin.”

The key to both IOHK and the development of Cardano has been on the emphasis of scientific rigor and putting the concepts and technology through the process of peer-reviewing. While this has given the Cardano team an impressive collection of academics and industry leading minds to work with, it also presents the company in a more vetted light–which stands in stark contrast to much of the industry. Hoskinson’s regular engagement with the ADA community, in addition to big-name third parties like Google, is a welcome touch. But the currency’s main draw continues to be in the belief that the best technology, backed by the best team of developers will rise to the top. Time will tell how Ouroboros and the Proof of Stake can change the landscape of cryptocurrency.

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Cardano’s (ADA) Marlowe To Bring Simplicity Into Financial Smart Contracts

Cardano (ADA) is becoming the next thing to watch in the blockchain industry going by its height of development in recent time. Not long, some team members behind the technology converged at Google’s London Office to open the eyes of curios enthusiasts to Cardano’s latest development and prospects.

Shortly after the meeting, Cardano lovers from far and wide inferred that they are smelling a possible partnership with Google, who invited Cardano to its office to enlighten the yarning crypto populace on some gray areas.

Cardano’s Marlowe Is Next Big Thing

To add to its glory, Cardano updated its roadmap, inserting a new language called Marlowe, a financial domain specific language (DSL) on the blockchain.

Marlowe will allow businesses to execute financial smart contracts on the Cardano infrastructure provided necessary conditions stated by Cardano are met.

An explanation by Cardano team indicated that the language is embedded in Haskell and implements a step computational semantics approach.

The roadmap declares that “Marlowe interacts with real-world data and state to enable the expression of smart contacts on top of an accounting model and an unspent transaction output (UTXO) model”.

The language, which is 30 percent complete, will provide a capability for business users to prove that financial smart contracts will do what they are expected to do.

Heard About Plutus Core?

Also, in the updated roadmap, Plutus Core was mentioned. The language is to carry on with the simplicity of Cardano settlement layer, using only one simple scripting language, with very simple interaction between scripts and the blockchain.

The road map reads: “It is highly expressive yet simple and secure. It is based on well-understood ideas from programming language theory, for example, pure functional programming, which will enable verification techniques to ensure correctness of scripts. Plutus Core is not designed to be written directly by programmers, but to be a target for compilers, including the Plutus language”.

The Plutus Core is going to be use at the computation layer. It will also have richer interactions with the blockchain, giving it the advantage to be used for sophisticated smart contracts.

Conclusively, Cardano is doing fantastic. The team behind the blockchain technology have tabled numerous steps to be taken to make it flourish and stand out in the face of competitors.

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How Cardano (ADA) Plans to Compete with Ethereum

CARDANO (ADA)–Speaking in a recent, published visit with Google’s London Office, the team behind Cardano’s ADA project stirred up a fair bit of speculation over whether the currency was in talks for a potential partnership with the search engine giant. Lost in most of the conversation over Google teaming up with Cardano was Charles Hoskinson’s response to a question posed during the visit:

Q. How will Cardano overcome the first-mover advantage of Ethereum?

The IOHK and Cardano founder has had an interesting past with the current #2 cryptocurrency by market capitalization. Charles Hoskinson was one of the original co-founders of Ethereum, alongside now leading figure Vitalik Buterin, before a series of disputes led Hoskinson to leave the project. The move was not all doom and gloom for the world of cryptocurrency or Ethereum’s former co-founder: Hoskinson went on to found IOHK (Inside Outside Hong Kong), the parent company behind the Cardano Project and currency ADA. Given his long history in the industry of cryptocurrency (Hoskinson created a digital school for Bitcoin in 2013 where he first met Vitalik Buterin), the move of having co-founded two top ten currencies has been worth about 500-600 million USD as estimated by Forbes.

It is becoming more evident that Cardano’s ultimate competitor in the cryptospace, at least given the current landscape, will be Ethereum and it’s predilection for Dapps, smart contracts and network driven growth.

Proponents of Bitcoin have long used the first-mover advantage of BTC as justification for the cryptocurrency offering the most long term potential over competition. Given the length of time that Bitcoin has existed in the market, as the genesis coin in the modern landscape of cryptocurrencies, it holds widespread recognition, near-household name branding, and a large degree of interest that draws developers, investors and merchant adopters. However, as the space of cryptocurrency grows beyond sole transacting currencies into the realm of complexity introduced by smart contracts, Dapps, and crypto-fueled networks, it becomes a more murky landscape over which currency offers the most advantage.

However, Hoskinson gives several reasons for why Cardano is in prime position to compete and overcome Ethereum, despite being later to the market. The first is Ethereum’s accessibility through written code, a feature that Cardano is attempting to capitalize on through its use of Ethereum’s Virtual Machine (EVM) and partnership with the University of Illinois,

So how many Java, C++ or Go developers are writing code on Ethereum? You can’t, Ethereum doesn’t support any of these languages. They can’t even run a single viral app on the platform. If you look at the top 10 languages, none of them works on the system, so, by definition, all those developers aren’t developing for the system, they have to go and learn new tools and new stuff. With Cardano, first off, we’re backward-compatible, 100%, we’re running an EVM. So you can take your Solidity code and your Web 3 stuff and all the things you’ve come to know and love about Ethereum, and you can run it on my system, and it’s faster, cheaper and safer to run it on my system because we have a better consensus model.

Hoskinson also expands on the nature of adoption, particularly from a developer’s standpoint, that supersedes specific loyalty to technology in an effort to find the cheapest, most efficient option,

it’s silly to say, ‘Oh well, only one platform and one token’s won’, it’s akin to saying Internet Explorer’s won and we all have to be Active X developers, god help us. I’m not loyal to IE, or Amazon Web Services. Rather, I have to ask, what’s the cheapest, best, most secure environment for me to run my computation in for my users? Our strategy is be backwards compatible, support more languages, especially mainstream languages in a better way, have a better user and developer experience, and be smarter about the ecosystem in which these contracts live. So we make it easier for the server to come into play, to use multiple ledgers and have a good app platform to deploy these types of things on, and we’ll definitely get a lot of growth there.

In addition, Hoskinson finds fault with the nature of the initial question, and argues that, while Ethereum has managed to capture a fairly large amount of the investor share in cryptocurrency, the actual adoption of smart contracts is a field yet to be tapped into,

The other thing is that very few people today write smart contracts. They play with these things, but very few people are smart contract developers. If 99% of developers aren’t in the ecosystem, how can you say a person has first-mover advantage? It’s nuts.

As some community members have pointed out, the idea of one currency gaining “advantage” over another is trivial in the open-source, decentralized atmosphere of cryptocurrency. Sure, a currency can implement superior technology or advantage over a rival currency, but then that antagonizing coin is free to take and do the same. While that’s not to downplay the difficulty of implementing new technology and protocol into an existing framework, it does show the power of decentralization in bringing out the best in organizations–by allowing them to freely compete and build off the back of other breakthroughs.

Branding will hold as much weight for cryptocurrencies in the growing landscape as the underlying technology. But anyone in the cryptospace, from Buterin to Hoskinson, likely realizes that, although the industry is littered with dead and dying projects, there is enough room for multiple currencies to exist. You can have a Mac and a PC, with investors and developers gravitating towards what fits their needs. The race for adoption, particularly by household name companies, will likely be one that takes into consideration brand-power. But all it takes is the innovation and excitement driven by one revolutionary product to flip the conception of ‘which currency is best’ on its head.

Think of the ongoing war between smart phone manufacturers. Some iterations provide greater advantage over the competition, with the constant tug-of-war ultimately to the benefit of users looking for the best phone–assuming they don’t blindly get lost in brand loyalty. When the appreciation of cryptocurrency and significant profit to be made is squeezed out of the industry, the real focus will turn to which currencies offer the most advantage. This should allow for enough diversity that intention and effort provide the greatest reward, as opposed to encouraging speculation.

You can read the entire interview between the Cardano and Google teams on IOHK’s blog.

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CNBC “Crypto Trader” Labels Cardano (ADA) As Undervalued

CARDANO (ADA)–Despite the plunging price of Bitcoin to levels not seen since last October, CNBC’s Crypto Trader remains bullish on the possibility of several altcoins, listing Cardano’s ADA currency as “undervalued.”

Cryptocurrency trader Ran Neu-Ner, who hosts CNBC Africa’s Crypto Trader program, told audiences on Fast Money, “There’s more blood to come,” in regards to the falling price of Bitcoin and the general decline of the cryptocurrency markets. Bitcoin broke the 6k USD mark yesterday evening, extending all the way into the 5800 USD range, reaching a relative low in value for the first time since October 2017. While the plunging price of BTC–and by extension, the entire altcoin market–follows on the heels of news surrounding the failure of lightning network in its present state (a protocol to reduce BTC fees and transaction times), the entire market is also responding to a general sentiment that the price will continue to drop. Cryptocurrency hedge funds, of which hundreds opened throughout last year, are reaching the critical point where investors can ask to take profit from their investment (forced sales), leading to a potential selloff in the market worth billions to the capitalization.

Given the negative attitude towards BTC’s price rallying in the near term, Neu-Ner has taken a bearish stance on the currency, predicting the price fall could extend into the 5300 USD range before the market starts to see a reversal, “Right now my money is on the market continuing to go down.”

Neu-Ner, founder of OnChain Capita, has been negative towards the price of BTC in the past, saying earlier in the month that he could see BTC testing 5000 USD in the near-term. He does argue that BTC pricing could form a floor when the cost of production (miner fees paid in electricity and equipment to process transactions and mine new coins) outweighs the benefit of selling at such a depressed price. Miners, in that situation, will be more compelled to hold their coins until price levels become more palatable–thereby drying up a portion of the current selling population.

Neu-Ner did give support for the future of cryptocurrency, saying that investors bullish on the technology should view this as a buyer’s market,

“If you understand the technology and you’re a bull, then now is a great time to be buying…The blockchain is progressing and this thing isn’t going away.”

In particular, the crypto trader highlighted Cardano’s ADA as a cryptocurrency for investors to consider, in addition to listing the altcoin as undervalued. When determining his next prediction for a successful currency, he stated looking at blockchain technology and infrastructure, which led him to Cardano and Neo.

Speaking specifically about his interest in Cardano, Neu-Ner had this to say,

“It’s a blockchain protocol. Which I think is highly undervalued.”

While the price of Cardano continues to fall coinciding with the slipping crypto market (ADA down to 0.11 USD as of writing), the eighth cryptocurrency by market cap saw positive news in the form of founder Charles Hoskinson meeting with Google to discuss the future of blockchain and crypto application.

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