What is Cardano Ecosystem?
Similar to Ethereum, Cardano Ecosystem is an open source, decentralized blockchain that allows developers to create smart contracts on the network to deploy applications without having to worry much about security and extend.
Cardano blockchain was founded in 2015 by Charles Hoskinson – co-founder of Ethereum and BitShares. In 2017, Cardano successfully raised $60 million through ICO. This is a very large number showing that the community places great trust in Cardano.
What is ADA coin?
ADA is a digital currency that represents the Cardano platform. Accordingly, the coin is launching on the Cardano blockchain (a pioneering decentralized blockchain network). ADA coin cannot be mined like Bitcoin. Instead, if you want to own it, you have to participate in staking or buy it on a cryptocurrency exchange.
Although the cryptocurrency market has developed rapidly with many new projects, ADA has always proved its position when it is always in the top 10 coins with the largest market capitalization.
Basic information ADA coin:
- Ticker: ADA.
- Blockchain: Cardano.
- Consensus: Proof of Stake (PoS).
- Contract: 0x3EE2200Efb3400fAbB9AacF31297cBdD1d435D47
- Total Supply: 45,000,000,000 ADA.
- Circulating Supply: 33,865,878,494 ADA.
Highlights of Cardano Ecosystem
Cardano’s scalability consists of 3 elements including:
- Transaction Per Second (TPS): Cardano uses the Ouroboros consensus algorithm, which belongs to the Proof of stake group.
- Network: Cardano uses RINA (Recursive Inter-Network Architecture) technology to divide the network into many subnetworks, and these subnetworks can interact with each other if needed. Thereby upgrading the bandwidth of the network
- Data Scaling: In order to reduce the data size of each transaction, Cardano is paying attention to two solutions, Subscriptions and Sidechains.
There are many different blockchain platforms, but these Blockchains cannot communicate and interact with each other. According to the published roadmap, Cardano will have a solution for interoperability between different Blockchains after the Goguen phase (in the 5 phases on the roadmap).
Usually, the sustainability of a Blockchain project is of great concern to many people, this ensures the benefits of the developer as well as the project companions, nodes, etc. For Cardano after IOHK ends the contract coin in 2020, it is likely that the project will consider creating a fund from the collection of the ADA portion when a new block is generated like Dash.
Partners and Backers
Currently, behind the Cardano ecosystem are 3 organizations Cardano Foundation, Emurgo and IOHK. The three organizations above did not disclose much information about the role for Cardano, the information was only revealed briefly that they are the financial and blockchain technology organizations that have supported Cardano from the beginning to the present time.
In addition, the community also knows Cardano a lot through Charles Hoskinson, he is the co-founder of Ethereum and has been developing Cardano since 2015 (officially launched 2017).
09/2017: Bryon – Foundation Phase: This is the stage where the Proof of Stake (PoS) trading network is developed, allowing ADA tokens to be traded and stored. This is also the period when IOHK launched Daedalus wallet and Emurgo launched Yoroi wallet, up to now, these are also the two most used wallets in the Cardano ecosystem.
07/2020: Shelly – Decentralized Phase: This is the period when Cardano begins to decentralize its network by allowing many individuals and organizations that can staking ADA to become Validator, this will help Cardano network increases security and reach more users.
09/2021: Goguen – Smart Contract Phase: This is the current stage of Cardano, Cardano intends to develop and launch a Smart contract that allows dApps to operate on the Cardano network, however this phase is in progress. Due to the delay, many projects with a vision to develop on the Cardano ecosystem have not been able to launch products or have to use the Ethereum network instead.
Future: Basho – Scaling Phase: During this phase: Cardano will introduce sidechain network with sharding mechanism to scale network capacity without compromising on security factor.
Future: Voltaire – Decentralized Governance Phase: During this phase, decentralized governance will be applied. Any user holding ADA can participate in proposals and vote on proposals from the community.
Projects in the Cardano ecosystem
Although it has been a long time of development, up to now, most of the projects intending to develop on Cardano’s land have not yet been deployed because Cardano has not yet completed its Smart Contract.
Cardano is more inclined towards real-life applications than DeFi, because Cardano’s partners are all large organizations in many fields such as education, agriculture, retail, etc.
The potential and pieces of Cardano
Much of Cardano’s future success will depend on its ability to establish a dApp ecosystem. Theoretically, the network has some outstanding features, such as flexible architecture, wallets, low transaction costs and interoperability, currently not many users or developers use the platform.
However, both the payment transaction and remittance space are clearly potential avenues for the network. The global market for contactless payment transactions is forecast to grow by US$801 billion by 2025. Furthermore, the size of the digital remittance sector is expected to exceed US$8.5 billion by 2025.
The dApp market may be nascent, but there are already a few major projects racing to capture users’ attention. Ethereum has been a real leader in the number of dApps, and now EOS. Moreover, with the introduction of smart contracts by Stellar, the level of competition promises to become fierce in the near future.
AMM DEX Liquidity
About AMM DEX Liquidity, this is the area that people are interested in quite a lot at Ideascale – Cardano’s developer forum.
Some typical projects: Cardswap (Cardstarter’s DEX), Ray Exchange (Ray Wallet), SundaeSwap, YaySwap, DeFIRE, Vy Finance, MinSwap,…
Indigo Protocol is an algorithmic synthetic protocol for the aggregation and valuation of real-world assets into the Cardano blockchain. However, the project is still in development and has not yet launched the Testnet.
AgeUSD is an algorithmic stablecoin protocol backed by Cryptocurrency. This is also a product created in cooperation with the Ergo Foundation and EMURGO on the Ergo Blockchain platform.
Matrix Swap is a decentralized derivatives exchange project built on two chains of Cardano and Polkadot, but these are two ecosystems that have not yet launched Testnet for projects to deploy on them.
Currently, Cardano is using mainly the Oracle solution from Ergo and they have no intention of integrating other popular Oracles like ChainLink or Band Protocol.
Recently, Charli3 – the Oracle platform launched on Cardstarter has been developed to become the first decentralized Oracle for dApps on Cardano, but it is unclear whether Charli3 will have many applications.
Lending & Borrowing
Liqwid Finance is the only project operating in the field of Lending. However, they have just announced the website, team and a little information on how it works, but have not released a test version for the project.
IDO Platform is one of the key areas to help attract cash flow to the ecosystem if launching projects on it have strong growth. Cardano is involved with two projects:
- Cardstarter: The project has been active in recent times. Launched 5 projects including: Charli3, SoMee Social, Alpha Impact, Gero Wallet and Definity.
- OccamFi: The project has successfully released its native token, OCC, and has not made any further moves.
The field of NFT has been noticed by many projects (about 8 projects), but the quality of the product and the progress is still a question mark because most of the projects are only in the ideation stage.
In addition, the Cardano ecosystem still has many partners operating in other fields such as Payments, Social Networks, Insurance, Identity, etc. However, most of them are small partners and have no direct impact. to Cardano.
Cardano’s development direction
Alonzo Testnet to Plutus Smart Contract
Although it has been planned for a long time, it was not until June 2021 that Cardano officially announced the successful development of Alonzo Testnet. This is a test version for developers before launching into the official network system.
Until September 12, 2021, Cardano officially launched Smart Contract for developers in the ecosystem. In just a short period of time, specifically 8 days later (September 20, 2021), the number of Smart Contracts built and tested on Cardano has reached 115,000 Smart Contracts. Although the number is not too much, it still shows the progress of ADA.
Initial Stake Pool Offering by ADA
As expected, Cardano will still use the methods applied by previous platforms. That is locking the ADA token to receive the project’s Native tokens. This approach will attract DeFi participants of the ecosystem, filter out projects that are considered “scam” by the community, and create growth momentum for ADA coin through buying power to stake.
As mentioned, many projects have been implementing this way such as staking Solana to receive SBR, SUNNY; stake LUNA to receive MIR; …
Many people have expected the Cardano platform to be an alternative to the Ethereum platform with its advantages. However, by the end of 2021, Cardano’s ecosystem is still considered incomplete due to the lack of many supporting platforms and applications in the ecosystem. However, with Cardano’s development roadmap until 2025, the project is still expected by many to have breakthrough developments in the near future.