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      "title": "What is Cardano?",
      "body": "![cardano image.png](https://steemitimages.com/DQmWACNBTUbbBMYuDZ8XwPFVJsSkv7YiGfNa4KkGmYrndEq/cardano%20image.png)\n\nThis is research that I have done on Cardano.  Personally, Cardano is one of the most difficult cryptocurrencies to understand. So, I’ve done extensive research and have tried to compile it in an easy-to-understand format. Much of my research came from listening to Charles Hoskinson who is the CEO of IOHK and is the main person behind Cardano. This is my best attempt to help others understand who Cardano is and what they are doing. \n\nWhat is Cardano?\n\nCardano is all open source and is being built in a very rigorous and peer reviewed way by a large international community from people. This type of peer review has given Cardano a high assurance that their conceptual design and software standards are correct prior to eventual adoption.\n\nTwo Layer Architecture\n\nCardano is developing a unique two layer, Proof of Stake (PoS) protocol architecture. This two layer protocol is the core architectural distinction of Cardano because it separates accounting from computation. \nThe first layer is the Cardano Settlement Layer. It’s the accounting side and handles the balance ledger and basic transaction side of things.\n\nThe second layer is what many feel will make Cardano great! It’s the Cardano Computation Layer and will be plug and play (“plug and play” will be explained later in this report). This is where decentralized apps and smart contracts will be based and can operate separately from the first layer. \n\nMission\n\nCardano wants to solve the three biggest issues with current coins – Scalability, Sustainability, and Interoperability. \nLet’s take a look at how Cardano plans to solve each of these problems.\n\nScalability\n\nScalability is a blockchain’s ability to accommodate as many users as possible, on the chain, while still retaining low transaction fees and fast consensus.\n\nOroborous is the name of Cardano’s Proof of Stake protocol. Oroborous is machine understandable (ie smart contracts enabled) and is the heart of Cardano.  It is the first Proof of Stake protocol to be scientifically proven “secure.”  \n\nProof of Stake (PoS) protocol is much faster and less costly than Proof of Work because PoS shortens the block time interval (via a method called sharding) and makes the network much more efficient. \n\nCurrent systems, like BitCoin, are not sharded and so they are replicated. Meaning, everybody copies the last transaction. This makes for a very slow system that has scalability problems. \n\nOroborus is a type of PoS blockchain technology that will allow transactions to be portioned into “chunks” called epochs. This will allow Cardano to maintain multiple chains concurrently. \n\nConsequently, slot leaders don’t have to just maintain a single block in a single chain. Instead, slot leaders will be able to maintain more types of blockchains and also run transaction processing for blockchains in parallel. This will allow Cardano to get consensus over a range of blockchains instead of a single chain. \n\nThe magic of Ouroborous is that it’s been designed in a modular way. Meaning it’s a plug and play platform that is designed with “future proofing” in its DNA. It’s a major advance thing because it allows Cardano to improve/upgrade on the fly. \n\nThis will be done by using a new technology called RINA (Recursive Internetwork Architecture) and will give Cardano a way to very naturally tune and configure Cardano as it grows from hundreds to thousands to tens-of-thousands transactions per second. It will very seamlessly connect and interoperate with TCP/IP. Oroborous will be part of Cardano’s ecosystem in 2018 and completely around by 2019.\n\nSustainability\n\nSustainability refers to the ability to continue over a period of time. \n\nOne of the biggest advantages of Cardano is that unlike BitCoin, it’s built with two layers. It’s the same reason why Cardano will stand the test of time because their second layer system is “future proof.” There are two main reasons why Cardano calls their second layer “future proof.”\n\nFirst, the second layer (the computation layer) will allow Cardano to make changes to their platform without a fork. That would be like you having the ability to work on your car engine… while you’re driving. \n\nAlso, the second layer will have the ability to execute smart contracts and will be able to support hundreds to thousands of program languages. So, you could plug in Etherium, or any other protocol because Cardano will have the capacity of being able to understand other protocols. \n\nSpecifically, Cardano will use Semantics-based compilation to support normal program languages like JAVA and C and JAVA Script. So, the developer can choose to work with the tools and languages they want to work with and it’s the ultimate compatibility. \n\nThis will provide a necessary bridge to usher in a great new era of interoperability.\n\nInteroperability\n\nInteroperability is a protocol’s capacity to interact and cooperate with different blockchains…and to facilitate smart contracts between one protocol (language) and another.  \n\nInteroperability is regarded by many as the “holy grail” of blockchain technology. That’s because it will be the main factor that will help bring blockchain technology into the real world. \n\nThe very essence of interoperability is to eliminate the need for centralized intermediaries. \n\nCardano knows that there will not be one token to rule them all. There will be many networks like Etherium, BitCoin and Ripple. In addition, the traditional banking networks will be running on older protocols. These systems speak their own language so it’s very difficult for them to understand each other. \n\nCardano is a cryptocurrency that will have the capacity of being able to understand other currencies/protocols. \n\nIn so doing, they will be “king maker” with the correct protocol to enable cross chain transfers and will control the movement of value between these systems. \n\nThis ability to move across chain is the reason Cardano calls itself the “internet of blockchains.” \n\nCardano plans to take a system that is currently blind, deaf and dumb to very intelligent and robust. In so doing, will make the crypto world compatible with the legacy financial world. \n\nSo when somebody, in the crypto world, wants to do business in the legacy world….they have the ability to escalate the transaction from a standard cryptocurrency transaction to one that the bank would actually recognize and feel comfortable with. \n\nIf Cardano is successful with this, they will be the glue that can facilitate the internet of blockchains. Consequently, BitCoin can stay BitCoin, Etherium can stay Etherium, Ripple can stay as Ripple and the banks don’t have to change much. \n\nTreasury and Venture Capital Arm\n\nCardano will have a self-funding Treasury.  As stakeholders win newly minted Ada (Cardano’s cryptocurrency), via a PoS lottery, a portion of that Ada will be deposited into the Treasury.\n \nThe Treasury will represent the best interests of the stakeholders. For example, if three new projects come up, the Treasury will work like a direct Democracy and everybody will be able to vote on which Cardano improvement protocol should be priority. \n\nAs ecosystems grow and technology changes, it’s very important to have a process for changing the protocol. \n\nCardano’s Treasury Voting System will give Cardano a process to change the protocol in a very slow, deliberate, methodical way. \n\nLastly, Cardano has a venture capital arm called Emurgo (https://emurgo.io). They are incredibly well funded. They have an enormous treasure chest. So, when Cardano has smart contract capabilities, there will be a flood of things that come in as a result of Emurgo’s efforts. \n\nConclusion\n\nCardano is probably the most sophisticated project out there. They have the money, the people and the know-how to change the way cryptos work and be the standard for blockchain protocol for the next 40 years.",
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