If you’ve landed here, you’re likely asking yourself “what is Cardano?” Or seeking to learn more about the platform or the cryptocurrency. Well, friend, you’ve come to the right place.
Here at SLFEX, we have a wide range of passions that are broad but tend to overlap beautifully. We are passionate about supporting erotic creatives, leveraging best-in-class emerging technology, and educating our community on both topics and everything in between.
If you’re new here (welcome!), SLFEX is using blockchain technology to build a platform that emphasizes the importance of sex-positivity, sex worker rights, and education to offer a unique erotic content experience. There are tons of erotic content platforms out there. However, SLFEX is unique because of the values and the technology it’s being built upon. For this exploration, we’re going to focus on the tech. SLFEX is actively working with the Cardano blockchain. So, we want to answer everything and anything you might be wondering about Cardano. For starters:
What is Cardano?
Good question! Cardano is a blockchain platform founded by Charles Hoskinson, co-founder of Ethereum. The Cardano blockchain’s primary cryptocurrency is also named Cardano, or the ADA token.
If you’re unfamiliar with blockchain technology, it’s a method of storing information in a transparent, unalterable way. Blockchains host and track cryptocurrency and other digital transactions, recording every occurrence publicly, like a digital ledger system that is accessible to everyone, always.
Several blockchains exist, the Bitcoin and Ethereum blockchains for example, and each has many defining qualities. The Cardano blockchain is third-generation and the first to be founded on peer-reviewed research. Being a third-generation, research-based platform means that it was developed based on the strengths and weaknesses of the platforms that came before it. Cardano’s founding principles are security, sustainability, and redistributing power back to the individual (just like SLFEX).
Something that sets the Cardano blockchain apart from the rest is that it uses a proof-of-stake (PoS) system called Ouroboros, rather than the proof-of-work (PoW) system that many other blockchains rely on.
What Can Cardano Do?
Beyond simply housing crypto transactions and allowing users to buy and sell cryptocurrencies, the Cardano platform is a vast, decentralized digital platform that also supports decentralized application (DApp) development, multi-asset ledgers, and smart contracts. While financial transactions are at the root of blockchain technology, the space is growing to support all sorts of digital actions and transactions. Cardano has big eyes for the future in this way.
Of course, the Cardano blockchain supports crypto transactions. If you have a crypto wallet, you can buy and sell the Cardano token, ADA, and use it to buy things. The blockchain itself allows for decentralized financial procedures. This means that you can transact directly with other parties without the necessity of a centralized bank or financial institution.
Further building upon the digital ledger system, Cardano also enables the use of smart contracts. These are digital contracts that are automatically executed when the terms of the agreement are met. In legal circumstances, for example, these can be used to automatically fulfill both parties’ ends of an agreement once the conditions have been met.
Last but not least, the DApps. DApps are similar to apps as you know them, meaning that they work to provide some sort of function to their users. The key difference is that they are decentralized and can operate completely autonomously once built. They often rely on smart contracts to carry out their functions.
How Does Cardano Work?
As we mentioned, Cardano uses a proof-of-stake mechanism called Ouroboros as opposed to a proof-of-work mechanism. Both PoS and PoW are “consensus mechanisms” that are used to verify transactions, add them to the blockchain, and create new crypto tokens.
Blockchains are built up of a vast network of computers that work to come to a consensus and verify transactions, they are then rewarded with tokens and this is how new tokens are made. The difference between PoW and PoS is the consensus process that the network carries out.
Proof-of-work is the original consensus mechanism that was first introduced with the Bitcoin blockchain. In a proof-of-work system, computers (also known as miners) from around the world race to solve a math equation. The winner is the one who updates the blockchain with the new transaction and gets paid out in tokens. This process requires a ton of energy as countless miners are working simultaneously on the same block. While this has been a trusted method for keeping a blockchain secure and decentralized, the energy required is significant and the cost associated may not always be worth it for miners. Alternatives like proof-of-stake have been developed for that reason.
Proof-of-stake systems have a network of validators who put their cryptocurrency at stake for the potential chance to validate new transactions and, in turn, be rewarded with tokens.
In this process, validators are selected based on how much they have staked and how long they have been staking their cryptocurrency on that blockchain. It selects validators who are invested, both financially and time-wise, and offers them a chance to participate in this way. This way, someone “wins” a transaction by expressing and proving interested rather than competing simultaneously with an endless roster of competitors.
Once the winner has validated the new transactions, other parties can assess them and confirm if it’s accurate. Once it has been confirmed a certain number of times, the blockchain will be updated and everyone involved will be rewarded.
Proof-of-Work Vs. Proof-of-Stake
The main difference here is that the energy is mindfully distributed and only selected validators can contribute to a transaction. As is the case with putting anything at “stake,” there is some risk involved. Validators often have to stake a high amount of cryptocurrency to be considered and they risk losing some of their stakes if they are offline or make errors.
There is risk involved with proof-of-work, as well. However, that is more in the form of wasted time and energy in working to solve the same equation as everyone else. The key difference between the two mechanisms is energy. Proof-of-stake is far more sustainable, having a much lower energy consumption required for each block’s creation.
The Cardano Token, ADA
Cardano’s digital currency, ADA, is named after Ada Lovelace, a 19th-century mathematician, and the first recognized computer programmer. The team behind Cardano is consistently looking to expand and optimize the real-world applications for both the Cardano blockchain and its primary cryptocurrency, ADA. The token began trading publicly in 2017 and just a few cents per coin. In total value, it amounts to one of the largest cryptocurrencies on the market. Though, the cost is quite minuscule in comparison to other tokens, as the peak price was around $3.
According to the organization behind Cardano, every ADA holder holds a stake in the overall network. This comes into play in the proof-of-stake system.
“Ada stored in a wallet can be delegated to a stake pool to earn rewards – to participate in the successful running of the network – or pledged to a stake pool to increase the pool’s likelihood of receiving rewards. In time, ada will also be usable for a variety of applications and services on the Cardano platform,” wrote the organization.
What is so Special About Cardano?
To understand what is unique about Cardano, it’s important to understand the anatomy behind the driving force. There are three key partners that each play an essential role in Cardano: The Cardano Foundation, EMURGO, and IOHK.
Three Key Partners
The Cardano Foundation oversees and supervises the advancement of all things Cardano. The Foundation looks both outwards and inwards, working to drive adoption and advance the technology. There is a governing council that has been recruited mostly from the wider Cardano community. These are the key players behind developing the future of Cardano.
Next up: EMURGO. This is the for-profit arm of the brand that works to drive the advancement of the platform commercially. EMURGO works to support solutions for a broad range of industries including finance, supply chain, retail, healthcare, and more.
And finally, IOHK. Founded by Charles Hoskinson and Jeremy Wood, IOHK is contracted to design, build, and maintain the Cardano platform. IOHK works with universities on research and development and drives the peer-reviewed piece of the Cardano foundation.
What Makes Cardano Different
Many things set Cardano apart, but at the core is the peer-reviewed approach. All advancements of the platform are developed, reviewed, and agreed upon by a collective of academics before being implemented. This includes the consensus algorithm and the code that the entire network is based upon.
The team behind Cardano is constantly publishing academic papers regarding the platform and the blockchain/crypto space more broadly. They are incredibly passionate about education and accessibility. Therefore, all that they do is backed by research, evidence, and facts.
Further, as we’ve mentioned, Cardano’s PoS consensus mechanism is far more sustainable than the alternative. Environmental sustainability is one of their founding principles.
Is Cardano a Good Investment?
Deciding upon investments is highly personal; you need to take your circumstances and goals into account. Such is the same when deciding whether or not to invest in Cardano.
While it may seem as simple as tracking and forecasting the Cardano cryptocurrency, ADA, this decision also includes gaining a key understanding of where Cardano is going as a whole.
Looking to ADA, cryptocurrencies are notorious for volatility, shifting in value unexpectedly. Of course, this does not exclude Cardano. But, this is something to consider when looking to invest in cryptocurrency generally.
Beyond fluctuations, the long-term value of a cryptocurrency can be dictated by the use-cases and demand for the technology itself. If you believe technology has a high prospect for long-term growth, it’s valuable to be in on the ground floor. So, what is the future of Cardano?
The Future of Cardano
It doesn’t take much imagination to predict the future of Cardano because it’s all been laid out in the roadmap. The technology is advancing based on a five-phase roadmap and updates are provided frequently.
While we do not provide investment advice, we are firm in our reasoning using third-generation blockchain technology. SLFEX is working actively with the Cardano blockchain and we are endlessly excited by the technology’s future.
We value education, empowerment, and elevating the erotic economy. We are leveraging what we believe to be the best-possibly technology to support our community.