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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

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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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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