Cardano (ADA coin) in a Nutshell

what’s up everyone my name is Michael and welcome to box mining today I want to talk about Cardinal it’s a blockchain project with the coin called ADA and it’s been many called many names really it’s been called the etherium of Japan is being called a theorem killer and there’s been a lot of excitement about this coin and a lot of requests for a video review so in this video I’m gonna talk about the basics of Cardinal what is Cardinal who’s behind Cardinal because this really helps me think about Cardinal and what is trying to do I’m also gonna be talking about a few components of Cardinal the proof of stake algorithm called Ouroboros and of course Cardinal scaling and how it’s trying to solve the problems related to etherium I’m also going to talk a little bit about the cardinal roadmap and of course the company behind Cardinal called 0hk input/output Hong Kong I’m also going to cover a little bit about the competition that Cardinals gonna face as well so you can make your own judgment our Cardinal this is a nutshell video so I’m just gonna try to cover as much as possible in the shortest amount of time as possible that way you get a brief overview of what’s happening here this will serve as a good starting point for understanding of Cardinal of course everything covered here is my personal opinion and not financial advice so let’s start off with how to think about Cardinal and for me personally the easiest way I can think about Cardinal is through its founder Charles Hoskinson so Charles is the chief executive officer of io HK and IOH k is the developers behind Gordon oh so that’s how it’s all related well Charles Hoskinson is also a co-founder of aetherium so he’s been there since very start and he’s seen and he’s been there try involving drawing a theorem out of Bitcoin adding the smart contract features and that’s why it all clicked for me for me just knowing who’s behind this realize all right this guy wants to extend aetherium wants to fix the problems behind aetherium and Cardano is exactly that so let’s start off what is Cardinals so Cardinal is a blocking protocol it’s its own block chain just like aetherium is its own place you know bitcoin is its own blockchain it’s got a cryptocurrency called EDA so you can transfer ADA on the Cardinal blockchain it does one thing very well and it’s main objective is to do smart contracts so this is very similar to what etherium does cerium is all about starting those smart contracts and those decentralized applications smart contracts are all about programmable money it’s about removing that trust that you have to place into people and putting that on a decentralized trust as nature so how does that even work well you probably might have heard about initial coin offerings icos those are an example of a decentralized application when you want to contribute to an ICO you can send etherium to an address and with that address that is a decentralized application and it will assign you tokens based on how much e theorem we sent the thing is when you send that aetherium you have a guarantee that this contract as long as it’s legit as long as you know you see what’s happening that this contract will provide you with tokens we also have other examples of this such as crypto kiddies we have kitty cats living on the blockchain and you can make kitties and produce different kitties of different or similar nature and that is another example of a decentralized app because it runs on a blockchain and it runs in a decentralized fashion there’s no one that can say oh yeah we’re not gonna give you any tokens or anymore or you can’t create your own kitties all the rules are written in a smart contract and you can trust a smart contract to run because it’s technically a machine it’s a line of code so it’s not influenced by personal opinion is not influenced by a third middleman and that’s a major advantage of a theory but of course a theorem has some problems because smart contracts are programmable it’s quite expensive to run very complex operations on a theorem so in terms of computational power the theorem really isn’t very powerful as a supercomputer it’s very weak it’s been kind of correlated to a owed Nakia phone that’s how slow it is and how much memory it guides it’s made slow because it’s the first one that was ever built there’s another issue of equilibrium of course that is transactions for a second sometimes during an IC e already can already see that u theorem boxing gets clogged up by the number of people who want to send transactions the number of transactions per second right now currently on the etherion blockchain is quite low so these are some issues with the etherium protocol and this is something that cha Hoskinson the creator of coronado spotted and he wants to fix so that’s where it all makes sense to me so of course etherium is also trying to fix these problems I want to point that out straight out and of course it’s a little bit harder for e theorem because if the idiom is already running implementing changes on a theorem is like implementing changing changes on a movie machine changing the engine on something that’s already running and this is extremely difficult so Cardinal had a time since 2015 when I was originally founded and conceived to create a new version of a smart contract system with something called proof of stake so I’m going to talk about this and this is something that they’ve been working on for quite a long time so since founding in 2015 cardano’s been kind of in a research phase and now it’s finally presenting its own blockchain so this what happened very recently so they did all this research they spent all this time to slowly design a new blockchain before this new blockchain they’re using something called provable lee secure proof of stake blocking protocol so what does this even mean and how does this affect you well if you know something about aetherium aetherium is secured by mining it creates new blocks kind of putting all those transactions on that happens on a theory up into a block via process called proof of work or mining so we have something like I’ve been talking about a lot about these processors you get GPUs you get different my GPU units that mine and it they take electricity and they take a lot of power to secure the etherium Network proof of stake is a way of replacing miners it’s in changing stuff like this to a stake in a project for example in a de you’ve just incurred on oh you just hold a de now you prove that you hold this and now you can start creating blocks so it’s instead of owning a miner you can just own a de and the thing is proof of stake because it doesn’t require power to run it’s very energy efficient and allows a way to secure the network with just the network itself so this is the way that we achieve consensus we make sure that everyone’s on the same page all those accounts are balanced this is what proof of stake is trying to do but instead of running it by miners it’s run by these slot leaders which hold a de Coyne so it’s cheaper to run and it’s almost as secure the thing is right now there’s a lot of projects that want to move to prove mistake but they can’t or something like a theorem they want to move to proof of stake but they want to face it and introduce it in small parts because of the security element by securing a network by mining you offer what is known what is Bitcoin experiencing it’s Bitcoin has been secured for many many years and there wasn’t any way that you can like hack the Bitcoin network this is why things like oh we can create Bitcoin out of thin air just can’t happen this is also why bitcoin is a store of value you can’t just arbitrarily create Bitcoin and in the same way you can opportunity create aetherium I like to also say that securing a blockchain is very different from securing the distributor apps that run on a blockchain so for example aetherium people have heard about the etherium hacks but they’re actually applications written by other developers that are running on a theory the etherium network itself has not been hacked if it has then people can just steal funds or rewrite transactions and just cost general chaos but a theorem is also trying to be a store of value as well so I do want to make that distinction but what Gordana wants to do is it wants to secure everything by proof of stake and of course using a new Prevost a called Ouroboros another thing that Ouroboros allow it allows Cardinals to scale so I did talk about how aetherium is quite slow in terms of computational strength the number of transaction per second and of course the computational power of the network is quite low and that’s why gas is expensive to pay for something that’s computationally very expensive you might even run out of gas sometimes your dad all splits time periods in two epochs and this is something that’s not seen before and it’s quite unique to Accord data instead of – we have slot leaders that create new block secure the network mind those transactions process those transactions and of course they try to achieve consensus in the network so everyone that’s on Cardinal has is on the same page and this is what’s important about distributed computing and the thing is of course Giordano isn’t just about a single blockchain theoretically Carrie Nano can scale so thats thought-leaders can create different block chains – so by doing so by splitting the workload between multiple block chains you’re no longer limited to one single block chain and one congestion it’s like having many roads out of a city is suggesting having one Road out of a city if you have one Road out of a city it gets congested at times and then you feel so helpless because you just can’t move just may be a traffic jam maybe a car crash something happens and nothing can get done but having multiple roads but having multiple block chains you allow a greater transaction throughput and alternatives this can also be scaled vertically and horizontally – so Cardno can have multiple epochs running at the same time so it’s like a two dimensional scaling instead of a single dimensional scale this allows for a lot of transactions to be done and the best explanation for this if you guys are very interested is the car dental whiteboard with Charles Hoskins skin so you can watch this video it’s been really great and he explains it very well about how its organized and how they want to solve the issue of scaling on aetherium using this method so I think this was one of the most attractive things about Cordero and why people call it the etherium killer it’s because of the fact that it can scale baby where both vertically and horizontally to have a huge amount of transactions and to do a huge number of calculations on it too of course there’s a lot of other things that haven’t covered here about Cardinal for example it’s written in the language Haskell and Haskell is viewed to be quite modern and advanced as a programming language they’ve also been trying to make sure that the distributor apps running on Cardinal is extremely safe and then we try to encourage better coding practices including industrial-grade kind of like airplane type coding press practices so these are all things that Cardinals trying to do to solve the issues that we do see on a theorem so I’ll be saying that Cardinals trying to be a theorem killer but in a famous talk by metallic metallic said the e theorem killer is etherium if there even is also thinking about ways to scale and you know the idea of block chain in block chains well there’s a technology called plasma that is gonna be trying to that if the theorem is gonna try to implement that will do block chain within block chains so there’s a lot of improvements in the theorem that they’re trying to implement but of course it takes a while so one of the competition sources for Cardinal will be a theater itself because it is also a moving target we also have Yas Yas has an amazing way of dealing with transaction throughput and of running decentralized applications they also have a different kind of ideology so if a user wants an interactive a smart contract the smart contract provider would be the one that pays for the transaction so they’ll have to stake various amounts of Eos and this is a kind of a go reversal so if you want to interact with your app so you want to use Facebook you don’t want to be paying for transactions like every time you click like you don’t be paying that you want Facebook to be the one that provides everything and hosts it so that’s kind of the idea behind EOS it has a different way of thinking but it’s also tried to you know cater for decentralized apps and of course smart contracts we also have iota as a potential competitor as well iota doesn’t offer as much in terms of smart contracts but its transactions are free so the way it scales is going to be completely different this is a very brief summary of Cardinal and of course I do want to say that the name aetherium of Japan came about because of the number of investors and the developers that are working on the carpal tunnel project in Japan so there’s a lot of involvement in the Japanese community in here that’s why it’s kind of called the e theorem of Japan but it could equally be called the etherium of Hong Kong because of course a company behind it is called input-output Hong Kong and it’s based in Hong Kong in fact I ohk have been trying to get developers who are previously developing for freedom to switch over to Cardinal and they’re starting incubator programs here in Hong Kong so because I am in Hong Kong as well I’ll try to keep you guys up to date with what they’re trying to do so guys I hope you enjoyed this video and I hope you guys understand a little bit more about Cardinal if there’s anything you don’t want to understand or there’s any features of Cardinal that you want me to cover in addition to this please leave a comment below and I’ll try to include that in a follow-up video you guys so much for watching this video remember to share this video to anyone who might think it’s interested in Cardinal or researching about Cardinal and hopefully that will provide a little bit of help for them as well thank you guys so much for watching remember to subscribe to this channel by clicking the little subscribe button down below and the notification about to get notified of new videos like this thank you guys so much for watching see you next time

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