In late September the head of the company Input Output Hong Kong (IOHK) Charles Hoskinson announced the launch of testnet Shelley — updates blockchain platform Cardano. Hoskinson announced this during a meet up community project in Plovdiv, Bulgaria. The statement of the head IOHK marks a new stage in the development of the network, both in technological and in economic terms, which is comparable in its significance for Cardano with the launch of testnet Ethereum Ethereum 2.0. Another important news, which reported Hockinson community, was on the conclusion of a partnership with sports shoes and clothes New Balance. How was the launch of testnet Shelly and what will be integrated blockchain platform Cardano in the work of a famous Shoe brand, talks DeCenter.
To better understand the essence of the new network updates Cardano, it is necessary to remind about the plans and tasks of the team behind the project. Recent media attention to the draft fell slightly. But not so long ago, the internal cryptocurrency ADA was in the top 10 coins by market capitalization. It should be noted that the philosophy of the team Cardano is somewhat different from other blockchain projects is a kind of research laboratory to solve the problems of blockchain networks.
The project Cardano appeared in 2015, and comprises three organizations:
Company Input Output Hong Kong (IOHK) develops and maintains a network of Cardano, as does the Company Electronic Cash with anonymous cryptocurrency zcash for.
Development project Manager Cardano Foundation.
Japanese blockchain Emurgo company is engaged in commercial implementation of technology.
The most famous in cryptocommunist representatives Cardano is the founder and Director of IOHK Charles Hoskinson IOHK and co-founder Jeremy wood. Hoskinson is also the co-founder of the Ethereum Foundation. In 2015, he, along with Jeremy wood founded IOHK in order to create a blockchain of a new generation.
According to the theory of Hockinson, there are three generations of blockchains. Bitcoin and other blackany that supports only transactions that cannot be assigned to additional terms belong to the first generation of distributed registries. Ethereum became bloccano second generation because it allows you to set conditions for sending money. However, Ethereum has a number of disadvantages: complex scripts and the problems of scaling the network. In addition, the ideology of Ethereum Cardano criticized for poor quality control in the case of the case of THE DAO and considered a weakness of the system is its incompatibility with other blockchains.
The purpose of Hoskinson and his team to create a blockchain of the third generation. The main advantages of the blockchain Cardano is its scalability, and interoperability and integrity. The creators of Cardano are proud to use scientific methods and conduct a deep audit of their developments, comparing them not only with other blockchain development, but with earlier software products.
To speed up transaction processing team Cardano developed a new algorithm for PoS — Ouroboros. In 2018, Hoskinson said that thanks to the Cardano algorithm will outperform Ethereum, creating a valid PoS-algorithm is much faster team Vitalik Buterin. The advantages of the Ouroboros can be attributed to safety — a new algorithm written in Haskell, which has a complex interface, but exceeds safety major languages of programming and fast prototyping, thanks to an interactive environment.
Also split the blockchain into two layers — this is an important distinction Cardano from other networks, which provides the opportunity to significantly increase its throughput in a single layer place the transaction of coins are stored in another smart contracts. With this technology, a failure in the execution of smart contracts will not be able to stop the transaction and Vice versa.
The developers Cardano shared the roadmap of the platform for five periods: Byron, Shelley, Goguen, Basho and Voltaire. In the roadmap of the project in 2019 initially envisaged the implementation of two major upgrades: Shelley Goguen and, and in 2020 — Basho and Voltaire.
The first stage in the development of the project, Byron, began in 2017 with the release of ADA and run the core network Cardano. At this stage the project has not yet implemented smart contracts, and in fact the network is in the development stage. All nodes Cardano under the management of developing project organizations: IOHK, Cardano Foundation and Emurgo, they control the network.
And in 2019, the community came to the next stage of development — Shelley. During this stage, the network Cardano should become a decentralized system and activate the algorithm dPoS. This is the aim of starting testnet updates. An important economic aspect from its activation will be the opportunity for holders of ADA to participate in stacking and to profit from delegating their coins. It is expected that this possibility will be community project since November of this year. Holders of coins of the ADA will be able to run a node yourself and to delegate your coins in pools.
By the end of the period, Shelley network Cardano must become more decentralized network than Bitcoin or Ethereum. By estimations of developers, decentralization Cardano will be higher than 50-100 times, and the number of pools running on the network, closer to 1000 (the algorithm of the compensation of the pools laid cash incentives to their number reached 1000). With Bitcoin only a few dozen pools, and blockchain EOS and less. It is no coincidence cryptocracy such as Nouriel Roubini, blame the blockchain platform that is decentralized only in words, but in fact vulnerable to attack by 51%.
At the moment staking the web is still not activated, now testname Shelly just had the functionality to run it, which so far works a limited number of users. The yield of staking can be calculated on a special calculator Ada Staking Calculator, it will be from 2.1% to 3.5% in coins ADA per year. The developers Cardano promised in November to allow the user testnet Shelly to participate in steninge, delegate to the ADA and to create their pools.
But after that, users will start to receive their share of coins ADA immediately, but only after the developers will make the test network. Then the balance sheets of wallets Yaroi and Daedulus, who work in testenate Shelly, replenish. The owners of the ADA, which keep your coins out of testnet, to participate in staking until I can. Selling coins from testnet will be possible only after the launch of the core network Shelley in the first quarter of 2020.
Good news for the community Cardano was the recent statement of Hoskinson on the conclusion of the partnership agreement with the manufacturer of sports shoes and clothes New Balance. Last year the company confiscated 25 million pairs of counterfeit shoes. Now blockchain solutions Cardano will be used to identify the authenticity of products New Balance. According to Charles Hoskinson, that Cardano does not stop: plans to create a marketplace and system identification of luxury brands and luxury goods. All details of the agreement, New Balance will be announced later.
In the next after Shelley stage of project development Goguen plans to launch smart contracts. Also to network Cardano added the second layer, which is responsible for their enforcement, and with them comes the opportunity to create and run a decentralized application. For writing smart contracts Cardano developers have created a special programming language Plutus, which is based on the principles of functional programming. The language is already developed and ready for testing.
The developers Cardano believe that wide scale that is still not enough. So now are in operation Marlow — an even easier programming language for the conclusion of financial contracts and agreements, and Meadow — a more intuitive platform for users without programming experience.
Development Goguen is parallel with Shelley, and had a chance to implement both networks in 2019, but since the launch of the core network Shelley moved to 2020, and run decentralized applications this year can not wait.
There is every reason to believe that in 2020 Cardano will be able to regain leading positions on the market of the blockchain-if the project will be developed within the framework of its roadmap. Because Cardano along with Ethereum 2.0. will work on the PoS algorithm, and hence the demand for ADA will increase. But before you run the main network and activate it as staking to talk about it is premature.