You already know that digital currency is changing the world. With all of the trending and still emerging information about crypto currency and its potential application, there is still much that is unknown to most people about the technology that makes crypto a viable, secure way to safely conduct business, complete financial transactions and grow wealth.
Blockchain technology is what makes cryptocurrency function securely and is the innovation that will drive crypto into the mainstream. And it is happening faster than the masses realize.
Bitcoin is indeed changing the world… but many more digital currencies are appearing and now that Facebook and Amazon are openly discussing creating their own digital currencies we know that the future is now. There are new and improved currencies taking root but of course, many of these new digital currencies will not make the cut.
The ones that will are the innovators and developers of the blockchain technology.
One exciting new project that fits this model is Cardano (ADA).
It’s a decentralized public blockchain AND cryptocurrency with an advanced smart contract platform. The project comes from one of the co-founders of Ethereum, Charles Hoskinson who is still active with Ethereum Classic (ETC) today.
Hoskinson is someone who saw early on what this technology can provide and has a proven track record.
The ultimate goal of Cardano is to be a single, decentralized application that handles all your financial needs.
This algorithm is a major innovation in blockchain technology and it uses Ouroboros, its own internally developed protocol, for proof of stake consensus.
Proof of stake is critical and here’s why. “Proof” means having evidence that blocks of transactions are legitimate. “Stake” means the relative value held by addresses on the node. “Relative value” is all the value held by wallets on a particular node divided by total value in the system.
This layered and modular design allows for fast transactions and numerous features which determines how individual nodes reach consensus about the network. The algorithm is a crucial part of the infrastructure that supports the Ada cryptocurrency and is a major innovation in blockchain technology.
Ouroboros also includes a mechanism for secure voting, and enabling on-chain governance and the technology is highly innovative in the area of blockchain.
While there have been attempts by other cryptocurrencies to develop such a proof of stake algorithm, these attempts at protocol have suffered from flaws and have not been shown to be provably secure at this time.
For a blockchain to be secure, the means of selecting a stakeholder to make a block must be truly random. The innovation of Ouroboros to produce the randomness for the leader election process is to do this by way of a secure, multiparty implementation of a coin-flipping protocol.
This Cardano blockchain is tackling many of the problems that have tripped up existing public blockchain models. Cardano is developing plans for block chain governance plus a treasury system to support future development and protocol changes.
As more people get into cryptocurrencies, it is becoming clear that the proof-of-stake mining algorithm is better. That’s because it allows for efficient and low-cost transactions. This explains why the mining communities for major coins like Ethereum are moving towards this system. Cardano mining is a proving to be a sustainable business venture for those who are looking to engage in it.