Cardano (ADA) now seems to be on the home straight to finally make the blockchain really decentralized with the Shelley update. At the same time, the most important company behind Cardano, IOHK, has announced that it will support the cryptocurrency ecosystem with $ 20 million. The price explodes promptly.
Cardano is one of those cryptocurrencies that can best be described as a “professor’s blockchain”. The coin, ADA, has been around since 2017, but Cardano is still running “with training wheels” in July 2020.
The project by Ethereum co-founder Charles Hoskinson takes its toll, the first really to become a functioning proof-of-stake blockchain. Cardano is supposed to combine a high degree of decentralization with a high level of scalability, while the blockchain uses little energy thanks to proof-of-stake and, thanks to the smart contracts, does everything and more that Ethereum can do. Hoskinson and his team underpin this claim with numerous research projects.
So far, however, Cardano’s block production has only run on the servers of the three companies that issued the coin with an ICO. That should change with the Shelley update. It has been announced since the end of 2017 and has been postponed again and again since then. A week ago, an employee of IOHK, Charles Hoskinson’s company, announced in the Cardano forum that the time had come: “We have been successfully operating a 1.14.2 node in the public Shelley testnet for more than a week.And we can confirm that we will start the new node in the Cardano mainnet … ”About a day later, the employee explained that the node had now started in the mainnet. More interesting moments from the world of crypto can be found here https://cryptoine.com/what-is-bitcoin-and-how-does-it-work/.
This means that the Cardano- Network ready to go decentralized with the Shelley Hardfork on July 29th. With this hard fork, everyone should finally be able to earn money as a staker by producing new blocks for Cardano. Shelley is the second phase in Cardano’s development. It should make the network decentralized. At the end of the day, according to the roadmap, Cardano will be 50-100 times more decentralized than other blockchains, as the incentives are designed to create a balance between 1,000 staking pools.
Indeed such a blockchain is still missing. Ethereum, the current undisputed king of smart contracts, is currently facing massive scaling problems, which is reflected in the constantly rising fees. With EOS, Tron and Ethereum Classic there would be alternatives, but these have so far not really caught on. Hoskinson now hopes that Cardano will succeed in capturing the market’s need for cheap smart contracts.
To help the market get going, Hoskinson’s company IOHK announces a $ 20 million -Dollar fund intended to support the Cardano ecosystem. The fund is designed to support startups and projects that use Cardano and give them $ 250,000 to $ 500,000. At the same time, EMURGO, one of the three companies behind Cardano, continues to support startups.For anyone who is currently planning a blockchain project, Cardano could be worth a look just because of the good prospects for funding.
The market reacts promptly to this news. Cardano’s native currency, ADA, soared from 8 to 13 dollar cents over the past seven days. For investors who peaked at $ 1.24 per ADA, that shouldn’t even be a drop in the ocean. Nevertheless, the massive increase in price increases Cardano’s market capitalization to just under $ 3.46 billion, with which the crypto currency has overtaken Bitcoin SV (BSV) and was briefly in sixth place in the ranking of crypto currencies – even though BSV itself has grown tremendously in the last few days Has. In the meantime, Cardano has dropped back to seventh place.
That is a lot for a project that has so far been almost purely scientific. But the market is clearly demonstrating its trust in the team behind Cardano to actually take the step to a decentralized blockchain at the end of July, and recognizes Cardano’s potential to become one of the most innovative and powerful blockchains.
