MEXC Exchange Research: Cardano (ADA), The Public Chain for Smart Contract will be Launched Soon
Cardano, similar to Ethereum, is a smart contract platform committed to becoming a new generation of lower-level basic public chains that are more convenient, faster and smarter, and completely open-source. The founder, Charles Hoskinson was also one of the co-founders of Ethereum. At present, the development progress of Cardano is a smart contract platform, which is called the first blockchain project “driven by scientific philosophy and research”, and its development team is composed of a large number of expert engineers and researchers from around the world. Cardano adopts PoS consensus mechanism that does not require mining and an Ouroboros consensus algorithm.
There are three main official participants in the Cardano project: the Cardano Foundation, Cardano’scommercial incubation company Emurgo and the technology development company IOHK. The Cardano Foundation will promote Cardano to a broader community, popularize cryptocurrency knowledge, and excel in regulatory communication. IOHK is the engineering and code development organization behind Cardano technology. Emurgo is committed to integrating the platform with businesses.
Cardano is operated by a non-profit company called the Cardano Foundation. The foundation provides multiple development directions for Cardano and the whole blockchain business. They are committed to extend Cardano to wider communities, popularizing cryptocurrency, and communicate with the government for supervision. The foundation provides a standard framework to promote cooperation between enterprises. The service is similar to the Enterprise Ethereum Alliance (EEA) of the Ethereum network and NEO’s partner Onchain. Even though it is not a non-profit organization, it can also connect the public blockchain with the government and enterprises. Blockchain platforms such as NEO, ETH and Cardano are distributed. They provide a centralized publishing organization for enterprises, just like the publishing house of the platform.
Input Output Hong Kong（IOHK） (Technical Support)
IOHK is an academic institution that provides solutions for enterprises and governments to develop blockchains. The agency is led by Charles Hoskins and Jeremy wood, former CEO and executive assistant of ETH.
Among the three institutions behind ADA, IOHK is the most relevant entity of the project, led by Charles Hoskinson and Jeremy Wood. Charles first co-founded Invictus Innovations company, which issued BitShares, and then moved to Ethereum as the CEO! At present, he is the CEO of IOHK! Jeremy used to be an executive assistant of Ethereum. He also worked as a CSO in IOHK for nearly three years.
IOHK supports Cardano and has 17 research teams. These teams have been responsible for the development of Cardano’s technology and digital wallet. IOHK also supports other blockchain projects, including Ethereum Classic.
Emurgo, based in Japan, helps existing enterprises and invests in related industries by integrating blockchain technology to connect businesses to the Cardano blockchain. IOHK, Cardano Foundation and Emurgo have a clear division of labor and are associated with each other.
In short, the information that Bitcoin can support is general value transfer data, such as the transfer parties, transfer time and transfer amount. Ethereum, the second generation blockchain, supports more information, such as transfer conditions, reasons, entities involved, etc., which are metadata. Ethereum refers to the connection between actual value transfer and associated metadata as smart contracts, which are programmable contracts.
However, for Ethereum, since there is no separation between settlement and calculation, these information is stored together, regardless of whether metadata needs to be included all the time. The more data in each transaction, the higher the cost, and the more difficult it is for the blockchain to store the information.
Cardano separates transfer and information \. They separate the platform by dividing it into two different layers:
Cardano Settlement Layer (CSL): It is responsible for the token economy and the balance of all user accounts. Cardano’s native token ADA trades through this layer.
Cardano Computation Layer (CCL): Smart contract functions are in this layer and support regulatory elements such as digital identity.
The block reward will be issued every 3.5 minutes. The distribution frequency is as follows: initially, 2,000 ADA tokens will be generated for each block, with a total of 37,44,961 blocks; In the second stage, each block produces 1000 ADA tokens, totaling 37,44,961 blocks; In the third stage, each block produced 500 ADA coins, a total of 37,44,961 blocks. By analogy, it will take about 24 years to halve each block of 37,44,961 and produce three blocks per minute until all of them are released. 75% of the ADA coins generated in each block are used as the reward of the holders, and 25% are used as the reward for technology development and ecosystem builders after the project is launched. As long as users participate in the R & D and development of Cardano application, they may be rewarded.
According to Cardano roadmap, the development stages of Cardano network mainly include the following five stages:
Byron: The guidance phase allows users to trade and transfer ADA tokens.
Shelly: The decentralized stage where it becomes a completely decentralized network.
Goguen: Develop and integrate the smart contract platform in the smart contract stage. (Will be launched soon)
Basho: The scalability phase where the smart contract is improved to increase performance, security and scalability.
Voltaire: The governance stage where IOHK introduces a financial system and governance to ensure the long-term development of communities and projects.
Token: ADA (ADA is named after Augusta Ada King-Noel: A mathematician in the 19th Century, who was recognized at the first computer programmer and the daughter of a poet named Byron)
Total: 45 billion tokens（Ranked 5th for current market value）
Current circulation: 32,066,390,668tokens（Data sourced from CoinGecko on August 2）
Public Sale: 57.6%, 25927 million tokens, Completed
Ecosystem Support (IOHK, Emurg0, Cardano Foundation): 11.5% , 5185 million tokens
Mining: 30.9% ,13.887 billion
Becoming the nodes
Participate in node election voting
On-chain transaction fees
Possible existing challenges
There is still a big gap between the development progress and the full realization of technology
ADA’s ecosystem domain
Partial Ecosystem Projects
CardStarter was launched on March 29, with a focus on becoming the Launchpad and incubator of the Cardano network. It is planned to introduce a decentralized trading platform and AMM, namely CardSwap, in the third quarter. CardStarter sets up a hierarchical system through its token CARD, and token holders obtain the corresponding proportion of investment quota according to the amount pledged.
At present, CardStarter is deployed on Ethereum, and then migrated after the smart contract platform is deployed in Cardano. At the same time, CardStarter stated that all projects supported by CardStarter are ready to be launched on Cardano’s website.
Occam.fi is the smart DeFi layer under the Cardano ecosystem. It is mainly composed of three components: Launchpad platform OccamRazer, decentralized exchange OccamX and governance layer OccamDAO, OccamRazer as the main component.
Occam.fi has deployed OccamRazer on Ethereum in mid-April and will deploy OccamX and OccamRazer to the Cardano mainnet. OccamRazer allows the project to raise funds in various ways, including fixed-price mechanism, dynamic rise or fall mechanism, IDO joint curve mechanism, auction, etc. Besides, it also sets up a hierarchical system for users participating in IDO according to the amount of OCC staked.
Trustpad is a decentralized multichain IDO platform, including supporting coin security smart chains, Ethereum, Solana and Cardano. It aims to help project parties to raise funds and help early investors screen relatively safe investment opportunities.
DEX and Liquidity Protocol
Adax aims to become a DeFi solution in the Cardano ecosystem. It will introduce a DEX protocol that can provide token exchange and NFT transaction functions. Among them, the DEX protocol will be based on the AMM model. Adax plans to officially launch its platform after the launch of Cardano smart contract in the third quarter of this year, integrate IOHK ERC20 bridge and support cross-chain in the first quarter of next year.
deFIRE is a DeFi platform designed for the Cardano ecosystem. It provides execution services and order routing services for DEX token transactions and provides intermediary services between order flow initiators (such as wallets) and final execution platforms (such as DEX).
DeFinity Network is jointly launched by DMALINK, a foreign exchange dealer, and WeOwn, a technology company focusing on blockchain services. It claims to be a decentralized trading solution suitable for foreign exchange market, digital currency and central bank digital currency. DeFinity uses existing frameworks (including WeOwn, Ethereum, Polkadot, Binance Smart Chain BSC and Cardano) to build a decentralized ecosystem with interoperability. IDO was previously conducted on CardStarter and Occam. According to the roadmap, the project will launch its DEX platform in 2022.
Orion Protocol is a liquidity aggregation protocol that will aggregate each CEX, DEX and exchange pools into a decentralized trading platform. It is committed to find solutions to the fragmentation of assets in the cryptocurrency market, NFTs market and traditional finance and gather them into one place.
Orion Protocol and Cardano development company IOHK reached cooperation in April this year and will become Cardano’s liquidity aggregator.
NFT Token: LACIE
Virtual Land Token: LAND
ADAZOO hopes to build an NFT game based on Cardano, with its NFT collection, LACIE. Users holding LACIE are eligible to participate in the game. Players can get more LACIE rewards and continuously upgrade their roles during the game. In addition, players can also buy the virtual land token, LAND, and LAND holders can earn income from each transaction in their territory. ADAZOO aims to be one of the first NFT-based games running on the Cardano blockchain.
Bondly is designed to bring the first batch of certified digital goods to the sports, music, E-sports and collectibles markets. It also has NFT exchange platform NFTSwap, e-commerce gateway BProtect and other products supporting DeFi. Bondly Finance will be the first DeFi project on Cardano. On July 14 this year, Bondly was attacked. Bondly said that it would launch a secure multi-sign ERC20 contract for the revised Bondly token and provide the new token to the owner according to the snapshot taken before the incident.
CardanoSpace is a website that supports all users in creating websites. The website is a 100x100 grid website. Each cell in the grid is an NFT. The NFT holder can determine the image and message content displayed in its grid and add a link URL. Currently, CardanoSpace is selling the grid in batches.
CardanoTales is the first to release a Cardano-based blockchain hybrid RPG (role-playing game). Playable items and characters in the game are tokenized as Cardano NFTs (CNFTs), obtained or recovered through activities and/or in-game battles, or in special events.
Fungible Token: PMX
PlayerMint is a toolkit that can obtain revenue in the Metaverse. It consists of two types: fungible token and Non-fungible token (NFT). The fungible token PMX, as the toolkit asset, can be obtained through game performance. The NFT is minted or traded by players with PMX, and the metadata will be stored in IPFS and Arweave. The protocol will be deployed in game environments such as Fortnite and social environments such as Discord or Twitch.
Charli3 is the first decentralized Oracle project built on the Cardano network. The system verification functions include multi Oracle node consensus, forced node staking using native tokens, anti-Sybil attack, etc. Charli3 announced that DEXTools price data will be integrated.
Aada is the first decentralized lending protocol based on Cardano, allowing users to deposit assets to earn interest or borrow assets. With the Cardano ERC20 converter (ERC cross-chain Cardano) launch, a large number of assets will easily enter the cheaper Cardano chain.
Aada is currently establishing a decentralized autonomous organization (DAO), and the platform fees will be allocated to AADA token holders. Aada will release the front-end MVP and release the beta version in this quarter.
Liqwid is a decentralized lending protocol for the Cardano system. It establishes a decentralized market for lenders and borrowers to interact seamlessly by providing funds, minting interest-bearing qTokens, borrowing assets and participating in governance. Its solution is based on the Cardano UTXO model and is used to build secure and low-cost transactions. The Liqwid protocol aims to enable any liquidity provider or user to obtain interest and liquidity on demand and enable developers to use a Web3 world of open financial applications.
SoMee is a social media platform focusing on privacy, freedom of speech and security. Users can earn rewards by publishing content, comments by liking and sharing. SoMee will also add short videos for posting, video calls and other functions later. Its wallet, SoMee wallet will help users manage and track rewards, have built-in transaction functions. At present, SoMee has released a beta version and has been updated many times.
Somee also conducted IDO on CardStarter, which will be integrated on hive blockchain before the end of August, and then built on Cardano after Cardano smart contract is ready.
Ledgity is a digital solution specially designed for financial consultants. The Cardano ecosystem connects crypto assets and DeFi investment solutions with traditional finance through an intuitive, secure and transparent financial service platform. Digital solutions provided by Ledgity include account aggregation tools, regulatory tools, CRM tools and communication channels.