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Cardano (ADA) Solves Proof-of-Stake Conundrum

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Cardano
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As a top ten cryptocurrency by market cap, Cardano’s approach to development is unique. Rather than emulating a corporation or community, Cardano’s organization is purely academic. Operating like the board of a major research institute, they rigorously peer review every potential development factor and only update the blockchain when a full consensus can be made. As such, their platform holds a privileged place of trust in the industry.

In the past several months, we’ve seen Cardano make great financial strides. Their listing on Huobi bolstered their ADA token’s presence in China. In the western world, Binance expanded their trading pairs to include Binance Coin (BNB) and Tether (USDT). Of course, Cardano is not just a financial instrument. The blockchain exists to one day supplant other blockchains through superior technology, and recent news pertains mostly to these development timelines.

Solving the Proof-of-Stake Question

Proof-of-Stake often sounds like the perfect solution to the ever-present problems with the Proof-of-Work mining ecosystem. The large-scale deployment of ASIC mining hardware is only one component, but it feeds into many of the others. Increasing centralization due to ASIC mining mega-farms like Bitmain defeats the original purpose of cryptocurrency. This increases the potential of the dreaded 51% attack that could cripple prominent blockchains. Not to mention the sheer electrical consumption that comes from running hashing algorithms 24/7 on hundreds, if not thousands, of machines. Proof-of-Stake itself solves some of these problems but suffers from others.

Until now, Proof-of-Stake systems could not ‘bootstrap’ new or desynced nodes from a single starting block. Proof-of-Work is capable of this, and it prevents checkpoints or other theoretically ‘trusted’ parties from becoming corrupt. Cardano’s Charles Hoskinson recently released a peer-reviewed research paper outlining the process through which they created Ouroboros Genesis. This unique variant of the Proof-of-Stake algorithm solves the problem of bootstrapping and creates a system that can compete directly with Proof-of-Work mining. This could mean big things for Cardano, but also for the entirety of the cryptocurrency world. Given the extreme energy consumption of cryptocurrency mining, reductions in this process benefit everyone. It also helps to prevent hostile centralization by ASIC mining farms.

Cardano’s Global Expansion

Cardano’s addition to Huobi and progress in the Chinese market is well known by now, but the academic blockchain did not rest after this accomplishment. Instead, they looked to emerging markets that might benefit from blockchain integration. To this end, Cardano signed a Memorandum of Understanding with the government of Ethiopia. Blockchain can offer the African country several benefits – efficient agricultural monetization, secure governmental processes and more. The partnership remains in the opening stages, but new developments are sure to come – and we will watch with great interest.

Further, alongside Ethereum and the OmiseGo team, Cardano chose to boycott the upcoming Consensus 2018 forum. Citing concerns with how the forum’s parent company operates, Charles Hoskinson tweeted at Ethereum founder Vitalik Buterin. The latter announced that he would not be attending the conference, with Hoskinson vehemently agreeing. The combination of refusing parties gives credibility to some complaints about the conference – and the company behind it.

Looking Forward with ADA

In brighter news, the Cardano team received an invitation from major cryptocurrency event Eurocrypt 2018. The development team will speak at length about their Ouroboros Genesis protocol and how it can be used to bring Proof-of-Stake algorithms up to speed. Eurocrypt is a well known and academically rigorous event that fits well with Cardano’s company vision.

Further, Cardano’s recent release of two new test nets furthers their technical accomplishments. Both test nets appeal to developers specifically, and the full Cardano product release remains some distance off. However, considering the standards that Cardano set for itself, there’s no surprise that progress moves more slowly than the less scrutinized blockchains that make up the rest of the top ten. Seeing as Cardano’s value doubled over the course of the month of April, investors do not seem bothered by the speed of development.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors

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Aluna.Social
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When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat.  These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor.  But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.

Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace.  The real benefit to trading in these offices is to participate in the free flow of trading ideas and information.  Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed.  Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?

While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.

Mission Statement

Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors.  The goal of the platform is to help newcomers shorten their learning curve,…

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CoinFlip Scores Big with BRD Wallet Partnership

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CoinFlip
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As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible.  While many crypto users are extremely tech oriented, a lot of those on the sidelines are not.  The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above.  In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country.  Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.

In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map.  Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells.  BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit.  The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.

Cryptocurrencies are already making a huge difference around the world.  Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…

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Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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