Blockchain Whispers’ Lead Fundamental Analyst
Mr. Bunny Chaser
Price Basis for Cardano (ADA)
Cardano is a complete blockchain based platform developed by IOHK for the III generation of cryptocurrency users. Over time, Cardano (ADA) did make a buzz in the industry and slowly went low key. Yet, the nerve-wracking effort put into the platform by the team, remains undeterred. The very birth of this project was offbeat. Instead of having a whitepaper do the talking, Cardano chose to have their papers reviewed by experts (peer-reviewed papers). This reduced the possible occurrence of errors.
Cardano is believed to be one of the most technically sound blockchain platforms in existence as it has evolved out of 'scientific philosophy'. What makes it stand out as compared to ethereum is the multi-layer protocol. When we look at ethereum, the smart contract and the accounts seem to be working on the same layer hence making it less efficient as compared to the Cardano ecosystem. Cardano adopts a separate layer for a unit of account also known as the settlement layer and the computation layer for running smart contracts. Cardano aims to solve the ever prevalent issue with cryptocurrencies. Scalability, Interoperability, and Sustainability.
Scalability Issues Finally Solved
Scalability has been the devil haunting Satoshi Nakamoto (Bitcoin) and Vitalik Buterin (Ethereum). The key reasons hindering cryptocurrency adoption would be the price volatility and lack of technology to handle large number of transactions per second. We will focus on the latter here. Cardano utilizes RINA (Recursive InterNetwork Architecture) to improve scalability by dividing the network into sub-networks solving the network bandwidth issue.
Ethereum and Bitcoin chose the Proof-of-Work concept to start off their journey while Cardano adopted an advanced algorithm based on Proof of Stake consensus protocol called the "Ouroboros". PoS has gained popularity because not only does it cut down the power consumption significantly but also secures the network. Going by the word, “Proof” stands for the evidence substantiating the legitimacy of transactions contained within the blocks. “Stake” here lays emphasis on the fraction of total supply held by the address on the node.
What makes Cardano better than its peers?
Every great project has one unique characteristic that makes it stand out, something that appears to make it the best. This project launched by Charles Hoskinson and Jeremy Wood in 2015 surprised us by having 5 such breathtaking features.
ADA Layered Technology
Charles Hoskinson and IOHK understood the flaws of the ethereum network. A single layer cannot efficiently handle all the features. This gave rise to a multi-layered system for Cardano. Cardano Settlement Layer (CSL) is to be held responsible for managing transactions and accounts. ADA, the native currency of the platform resides in the heart of this layer. Cardano Control Later (CCL) enables the functioning of smart contracts. Working hand in hand, these two knights make Cardano unbeatable.
A unique project has a different approach from the very beginning. Cardano's team knew the existing programming languages lacked a pinch of magic, thus the opted Haskell over the traditional C, python, etc. What makes Haskell unique is its heavy reliance on mathematics, more specifically statistics. One of the important discrepancies between Haskell and Solidity is that Haskell uses formal verification to prove or disprove the correctness of an intended algorithm underlying a system with respect to a certain formal specification or property, using formal methods of mathematics. This makes it more secure and pretty flawless.
Within the masses, the true power resides. Major cryptocurrency related projects have a platform where they can get ideas from communities, Cardano believes in the same, only to make it on-chain. ADA is beyond a cryptocurrency. It can be used to excise the power of a governance token to propose improvements of the blockchain.
Lasting funds with the treasury
What makes Cardano a lasting project would be the allocation of funds. Cardano has built a treasury to ensure the development never stops. We often see companies shutting down even after they raise millions in their ICO. This is linked to mismanagement of funds. Cardano would lock their own hands and give the key to the community.
Cardano's Treasury receives a small percentage of all fees and ADA minted. This is similar to a wallet which is governed by a smart contract. To get a bailout from the treasury, the team needs to create a proposal explaining why they need funds and how much do they require. These proposals are then voted upon making this project better connected to the holders. The treasury then sends over the funds to the proposal gaining maximum votes.
“For any hypothesis to transition to a law, it undergoes constant scrutiny. It's only the best that gets engraved on stone.” Proof of Work faces massive criticism owing to the energy concerns.
Cardano’s team believes that spending computing power in the race to mining the block is extremely inefficient hence, their models elects a few nodes to mine the next blocks. The keyword here would the 'next blocks'. The 'slot leaders' are allowed to mine blocks and are given a certain time/block which they can mine. This is done by systematically dividing time into smaller packs (obviously not breaking time, they aren't in possession of the time stone. Thanos needs to return it). The world is divided into ‘epochs’ which are further divided into slots. These last for about ~ 20 seconds.
"With great power comes great responsibility". Yes, Ben Parker was right. Slot leaders possess an enormous amount of power and it is necessary that they are selected randomly. This is achieved with the help of multiparty computation (MPC). In this case, each elector performs a random action called “coin tossing” which is quite similar to binary, you are either a 1 or a 0. The results of this operation are shared with the other validators. In the end, they come to a common consensus by comparing all the results.
Ouroboros is a breakthrough innovation enabling true randomness in selecting the validator of blocks improving the security and scalability of the network at the same time. A fine balance that has barely been achieved by any of its peers.
Cardano Team aims to be ‘the blockchain that understands the working in other blockchains’.
The team intends to eliminate the need for exchanges or middlemen. We can truly unlock the potential of blockchain with the help of cross-chain transfers.
Cardano avails sidechain technology to find the right mix. Sidechains ensure the main chain remains unaffected thus reducing scalability issues by a large extent.
Sidechains can be used to finally achieve infinite scalability. This makes it immensely useful in the future where a small fraction of the thousands of cryptocurrencies will survive. They also play it neatly with the central authorities by allowing users to attach data about the transaction, but this is completely optional.
Cardano vs Ethereum
Having entered the race late, Cardano faces a harsh competition before it can be crowned to be the best of 'em all. From fighting the battle on the same side to fighting it against each other, Vitalik and Hoskinson have come a long way. It's surprising to know that Charles Hoskinson received first drafts of the Ethereum Whitepaper and they worked together for over 6 months.
It is alleged that Hoskinson parted from the Ethereum team because he wished to have the project funded by Venture Capitalists while Buterin wanted to tag along with 'non-profit organization'. Even though these two projects share a lot of common ideologies, Cardano chose to exploit the technological advancements available at its disposal. Multi-layered protocol with a flawless selection system for the next validator to a secure Proof of Stake consensus mechanism, Charles Hoskinson spent the 2 years of research and development well.
Let's have a look at some of the more prominent differences between these arch-rivals.
I suppose Charles Hoskinson is a great lover of poetry. The Byron or Bootstrap phase is named after English poet George Gordon Byron. This is the foundation layer over which updates would be provided. It kicked off the transfer of ADA. Being the first out of the 5 phases of the roadmap, it only opened doors to the Settlement layer.
The strong base layer enabled some crucial updates in Cardano SL. I would like to draw your undivided attention to the fact that ADA was developed using a language that is unorthodox. The security enhancement boon from Haskell comes with a bane. The stumbling block posed to be adoption due to an unfamiliar code. The team worked tirelessly to bring in the Exchange Enhancements, in turn, boosting adoptions. Today we find ADA on most of the exchanges making it one of the mainstream coins traded. The development hasn't stopped, the API (Application Programming Interface) is constantly updated revitalizing the usage of ADA. The in-house wallet Daedalus also gets an update in the Graphic User Interface (GUI) making it simpler than ever.
Daedalus Cardano Wallet
You touch your back pocket and feel nothing but your ass. This scenario can give every single one of us a mini-heart-attack. Only the thought of being robbed of my wealth sends chills down my spine and so does yours.
In the world of cryptocurrencies, you need to always be a step ahead of the game. Gone are those days where exchange wallets were safe to store funds. Cardano needs to rest in a safe wallet and I wouldn't be wrong in suggesting their in-house production, Daedalus.
Built with the very same security protocols as for the platform, this multi-platform web-based wallet seems to be on our favorite list to keep our funds safe. "Simplicity is the ultimate sophistication." Going by these words, the ease of use is remarkable. A terrific GUI without being too flashy, Daedalus serves its purpose. What makes it stand out is the online experience allowing users to access their funds from any corner of the world, any system running any operating system with any browser.
Building on the complexity of Haskell, this appears to be second only to hardware wallets in terms of security. The mathematical cryptography enhances security providing high-level fault tolerance. All this comes with extremely responsive support and an extensive guide to find your way through the application.
Things started heating up when Cardano's team announced they concluded the Byron phase recently. In my opinion, this is one of the most crucial phases and I must say, they named it after Percy Bysshe Shelley, the man who put in tune the laws of nature. Building on the foundation set up by Byron, the Cardano team intend to take a step towards full decentralization and making the system autonomous. As explained by a member of the IOHK, this is to be achieved with the help of three main workstreams being,
Incentives - Encourage the stakeholders to follow the protocol and ensure the platform functions smoothly.
Delegation - Allowing the users to hand over their rights to certain blocks of third parties
Networking - Enabling the infrastructure to support decentralization.
This phase brings a truckload of features with it making it the turning point of the roadmap. From the much awaited multiSig transactions to human-friendly addresses, Cardano has finally played their Trump Card.
IBM Q is finally paving way for the world of Quantum Computing and with this breakthrough achievement getting attention, cryptographers seem anxious on how the most secure blockchains would defend themselves against these supercomputers. IOHK understood the threat to the security of cryptographic transactions and are planning to implement Quantum-resistant signatures that will ensure the security of funds even if the transaction is decrypted with the help of quantum-resistant signature scheme called BLISS.
In light of recent events where the notorious Canadian Exchange Quadriga confessed that their CEO, Gerald Cotten took millions of dollars worth crypto assets with him to the grave, people raised the issue of management of funds. Cardano plans to implement multi-signature transactions which when coupled with their native wallet will enable joint control of funds. This is an essential development imitating the joint bank account holdings making it easier to adopt.
Open Ouroboros delegation
This will prove to be the biggest turning point of the whole phase. The Proof of Stake concept runs through the veins of the ADA network but sadly the staking part of it is not exploited efficiently.
As for the current scenario, only selected nodes can stake making it a smaller circle of users. Cardano's Network will go live on the completion of the Shelley Phase allowing any Tom, Dick or Harry to stake their ADA. A revolution of decentralized staking will give birth to thousands of staking pools in a very short span of time.
Enhanced Wallet backend
The Daedalus Wallet will be further improved upon in the Shelley phase adding the necessary links between the Cardano Network and Wallet enhancing performance as both of them need to work hand-in-hand for the success of the platform.
These sheets of paper have become the new trend making it easier than ever to scan, send and sprint from any corner of the world. This very idea of usage on the go makes this a must-have. Daedalus is expected to support these with the upcoming Shelley Update.
Consensus and incentive fees
Having an extremely sound platform with mathematical algorithms securing it, Cardano plans to fully exercise its Proof of Stake consensus mechanism by allowing people to set up full nodes and helping them do so. They also plan to introduce a mechanism to set transaction fees. This will bring the stakeholders
The most annoying part about cryptocurrency transactions is the addresses. Be it 0x styled or any other, this has caused tons of problems all over the world. Cardano currently uses a huge string of characters making it really tedious to use. In the Shelley phase, the team aims to trim off this size making it easier to communicate.
Ever watched "Jobs" the movie? He says that they are an internet company and they cannot start late. Similarly, a company that works in the security sector cannot afford to have its website hacked. As for Cardano, it needs to have its platform in the best health. With the Shelley update, we will see a new network layer that gives the necessary protection against distributed denial of service (DDoS) attacks. At the same time, it also enables decentralization boosting the growth of its platform.
Light client mode
Working with the wallet is time-consuming owing to the fact that it needs to sync with the blockchain so as to get the latest updates from the ledger. To get rid of this cumbersome process, Cardano plans to set up checkpoint providers. Think of them to be like the checkpoints in a game. Every time you start you play from the last checkpoint, not all the way from the beginning. The benefit we can reap off this would be a reduced sync time. This is possible as the wallet just needs to update itself from the last checkpoint. This would add another medal on Cardano.
Blockchain Whispers’ Magic
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Cardano Price Prediction
Cardano Technical Analysis
The weekly (W) (log) chart shows two neat curves that plot most of Cardano’s known history. I managed to connect most of the wicks and there is really only one curve that suits the top and the bottom of this chart. The new data points allow us to project these curves to the upside, and perhaps get a look at where the price is heading.
Also, note that Elliot’s impulse wave is playing out as expected. Soon wave 3 will be concluded.
There is a significant 35% to be had before we hit the first target marked out 2300 sat.
Any entry for ADA could be considered a good one at this point. It seems as if nothing will stop this momentum, volume is only building. I am optimistic about filling some orders ~1450sats but it might only return after making contact with the top side of the curve.
Enter: 1700-1450 Sats
Stop: 1340 Sats
T/P: 1750; 1930 Sats
Cardano Fundamental Analysis
From the very beginning, Cardano has focused on the essence of mastering the art of building on blockchains. Even today we can see the comprehensive research undertaken by the IOHK before zeroing it down to a decision. This has proved to act as a catalyst as the cryptocurrency and blockchain industry is in its early days. The right picks can make them a long way. The announcement of entering the Shelley Phase has given it some room for growth. A massive set of features popping in with the staking pools making the most damage to its peers.
We have seen the impact such a release takes on a coin. Many major cryptocurrencies have seen the emergence of staking pools. Cardano being one of the 'community preferred' platforms will see massive growth in this sector kicking off humongous buying pressure. Adding to its arsenal, Cardano also adds features to help it sustain any catastrophe, including the emergence of quantum computers. Sweeping the tech-savvy users off their feet, Cardano has a very strong outlook on both the fundamental and technical positions. The layered technology would give ethereum and EOS a hard fight in this battle for the best platform and mind you this game is huge. Tons of players in this game. This is because every country wants to build, use and establish themselves on smart contracts. As for everyday usage, Cardano takes a step into South Korea with Metaps Plus on their side. Entering the everyday market can only be done when you play it soft with your rivals. Transitioning from net banking towards cryptocurrencies, Metaps Plus now serves over 33000 offline stores with ADA.
Coinbase updates by Mr. Y
Back in July 2018, Coinbase announced that they were meddling with the idea of adding new digital assets on their exchange.
Blockchain Whispers said that Coinbase would explore
Basic Attention Token (BAT)
Stellar Lumens (XLM)
0x was the first to be added, followed by BAT and ZEC in November 2018. In 2019 XLM and XRP were added. Almost all these listings were announced far in advance and in the right order by Blockchain Whispers.
So, it is time to continue the saga.
The only one left of the group is Cardano (ADA) and they released Mainnet 1.5 on 20 March 2019. With this upgrade, Cardano moved from the “Byron"-phase of their roadmap and entered the "Shelley"-Phase.
This is a big deal, and here is why:
When Shelley has successfully implemented the decentralized Staking on the Cardano-network goes live. Right now, only selected nodes can stake, with the Shelley-hard fork the Staking will open for all. 1000s of staking pools will be launched with the new consensus mechanism.
Through my observation and experience, I see a pattern. Coinbase tends to list new assets after they successfully complete major protocol upgrades.
So, my assumption is that Coinbase will list ADA after the Shelley-hard fork in about 2-3 months.
This fact and the possibility of a live Proof-of-Stake system makes ADA a good asset to accumulate for the next weeks.
But don’t buy right away, it has pumped recently caused by the mainnet 1.5 release and the transition from Byron to Shelley. Wait for a few days, let it cool off and then start accumulating.
Another asset that has a high chance of getting listed on Coinbase this year is Zilliqa (ZIL). Coinbase was an early supporter of the project, although not officially. And they have added ZIL to the Coinbase Custody already. So watch out for this one.
ADA is almost guaranteed, ZIL has high chances.
So, the big improvement in this phase is the opening of the Ouroboros staking delegation. With this improvement, users have the chance to delegate their stake or act as a staking pool. This makes the system decentralized. Also, a voting center gets implemented, allowing users to vote on updates and protocol changes.
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