Beginner's Guide to Cardano

What is Cardano?

• Cardano is a cryptocurrency of the third generation; Ethereum and Bitcoin are both of the first generation.

• Cardano aims to address the shortcomings of Bitcoin and Ethereum by incorporating the lessons learned from those platforms.

• Ouroboros, a Proof-of-Stake (PoS) protocol, was first implemented by Cardano.

  • Bitcoin employs Proof-of-Work (PoW), whereas Ethereum recently switched to Proof-of-Stake (PoS).

  • PoS is much more cost-effective and energy-efficient.

Who made Cardano?

• Charles Hoskinson, CEO (one of the smartest people in cryptocurrency, co-founder of Ethereum, and mathematician);

• Jeremy Wood, an ex-embedded employee of Ethereum.

The project is now managed by three organizations:

• IOG (Input Output Global) is a company that focuses on research and development. It is regulated by the Cardano Foundation, a non-profit organization that promotes and safeguards the protocol.

• Emurgo, a Japanese technology company that provides funding for IOHK, receives funding from and collaborates with the European Union as part of the Horizon 2020 research and innovation program.

What distinguishes Cardano from other blockchains?

• A research-first strategy

  • An extensive international group of knowledgeable researchers and engineers make up the development team.

• Cardano's design principles are supported by more than 130 research papers from the IOG research team on a variety of subjects.

• Cardano's goal is to assist the estimated 2 to 3 billion people worldwide who do not currently have access to digital identities and financial services (with an initial focus on Africa). This is accomplished by providing digital identities and financial services to less developed nations.

Partnerships with universities:

• Stanford University

  • In September 2022, IOG made the announcement that they would provide funding for a brand-new $4.5 million "Blockchain Research Hub" at Stanford University.

• University of Edinburgh o Input Output Global (IOG) has funded a $4.5 million research hub at the University of Edinburgh as a result of a prolonged partnership with the university.

  • The development of Haskell, the programming language that underpins Cardano, will be aided by these investments.

Partnerships with governments:

• Ethiopia

  • IOG collaborated with the Ministry of Education of Ethiopia to provide 5 million students and 750,000 teachers with blockchain-based educational records and decentralized identity. This allowed them to digitally verify grades and more effectively track educational performance.

• Zanzibar

  • IOG announced a long-term partnership with World Mobile to collaborate with the Zanzibari government in order to maximize the region's Blue Economy, also known as "the sustainable use of ocean resources for economic growth, livelihood, and careers."