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Everything You Need To Know About Cardano, The Third-gen Blockchain

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Cardano – $ADA

The Cardano blockchain has shown a good level of growth since its inception as a third-generation blockchain. The growth of this blockchain network in extension has led to a meteoric rise in the value of its native token ADA. 

While ADA might pose as a good investment for crypto investors looking to make some money off it, it is important to know what has led to Cardono’s rise and what the future holds for the blockchain network and its token. 

To fully understand what has led to Cardano’s rise it is important to have a scope of what makes it different from other blockchain networks. 

What is Cardano?

Like Ethereum, Cardano is a blockchain network with a smart contract feature. But unlike Ethereum, Cardano is capable of more. 

Interestingly, Cardano’s birth happens to come from one of the brains that birthed Ethereum. Charles Hoskinson, one of the co-founders of ethereum is also the founder of Cardano. According to Hoskinson, Ethereum smart contract innovation is a profound addition to blockchain technology, however, it is a second-generation blockchain technology with several problems facing it. 

Hoskinson’s creation (Cardano) hopes to tackle these problems at the same time maintaining decentralization.

Cardano’s remarkable growth can be attributed to the number of organizations that are involved in its smooth running. These organizations exist so that Cardano creates and executes successfully, some of the most innovative ideas in the blockchain sphere. 

Specifically, there are three organizations responsible for Cardano’s heavy lifting

  • The Cardano foundation 
  • IOHK
  • Emurgo

The Cardano Foundation is the custodial organization for Cardano. It is a not-for-profit entity that  “standardizes, protects, and promotes the Cardano Protocol technology”. IOHK is a software research company also co-founded by Hoskinson. Finally, Emurgo is a Japanese company that merges commercial ventures with blockchain technology.

Cardano as a third-gen blockchain.

Although blockchain is not the only application of crypto, it is fair to say that Bitcoin championed the usage of the technology and brought it to the limelight. However, like any form of technology blockchain (relatively young technology) it is going through its stages of development and innovation. Hoskinson opines that we have gone through three generations of blockchain. 

The first generation was Bitcoin. Bitcoin’s launch in 2009 changed the way the world perceived money. After failed attempts to create a decentralized, general and secure digital currency, Bitcoin started the revolutionization of traditional finance. The Bitcoin concept was perfect, it, till today, leaves many marvelled. At the same, time it sparked a wave of innovation to its “perfect” concept. 

Ethereum, which is the second generation of blockchain, was the first to build Bitcoin’s innovation. While Bitcoin solved significant financial problems, it only allowed monetary transactions. Sending and receiving funds was all it could do. Ethereum changed that with a unique innovation called smart contracts. 

Smart contracts made it possible to add conditions to the funds that were being transferred. Ethereum began to show the world that more could be done with blockchain technology than just monetary functions. Money, shares and anything of value could be exchanged with a binding contract without the need for a third party. For example; a person sending Ethereums could add conditions to the transaction, saying that the receiver will only get the currency after something has been done in return. 

This innovation by Ethereum opened even more doors for further innovation in the blockchain space. The open-source blockchain ethereum created made Defi a possibility. However, the improvement on the technology still had its deficits. 

According to Hoskinson, “Bitcoin and Ethereum are smaller systems in a much smaller economy when they came out” The Cardano CEO says the team only hoped-for $100 million in market cap after they successfully raised $18 million for Ethereum. The development of Ethereum only anticipated a few thousand people building on the platform but the numbers grew faster than the development that could accommodate them. Now Ethereum is at $210 billion in market capitalization. 

Instinctively, Cardono learnt from the first two generations, added new elements that were lacking to become the third generation of blockchain. 

Three key elements highlight Caradano’s position as a third-gen blockchain.

Scalability

Usually, the benchmark for scalability is TPS, transaction per second. Bitcoin can only handle 7 transactions in one second, Ethereum can handle 15. In contrast, VISA can handle about 1700 transactions per second. If either network went mainstream, they would not be able to handle a lot of transactions. Cardano hopes to solve this by creating Ouroboros, a consensus mechanism on the proof-of-stake algorithm. Cardano’s Ouroboros is the first proof-of-stake protocol mathematically proven to be secure. 

Bitcoin and Ethereum use the proof-of-work consensus mechanism, an extremely tedious process called mining. Mining takes an incredible amount of hardware energy to do. Proof-of-stake, on the other hand, needs less. The process can be done easily on a PC or even a good smartphone. Although Ethereum started working on proof-of-stake a year earlier than Cardano, the new consensus mechanism will not be on the Ethereum network anytime soon. 

Practically, Ouroboros and the proof-of-stake algorithm could enable Cardano to handle a whopping 30,000 transactions per second. 

Besides transactions per second, there are other scalability benchmarks is; network. Blockchain or distributed ledger technology means data is constantly moving through networks. Speed and seamlessness then become a must. However, Bitcoin doesn’t do too well with speed. Cardano on the other hand has an innovative response to the speed limits facing Bitcoin. Recursive Inter-network Architecture or RINA. Interestingly, RINA is so fast that it could serve as the new backbone of the internet. The technicalities of the technology are however immensely complicated. 

Interoperability

 The second element in Cardano’s third-gen framework is Interoperability. Hoskinson believes that there won’t be one main cryptocurrency. He is of the premise that most cryptocurrencies we have in existence today will continue to exist. In fact, traditional banks will continue to operate. What Cardano proposes is unity between every blockchain network and by extension traditional financial institutions. This has been termed the internet of blockchains, a network where Bitcoin, Ethereum and even banks can coexist. The need for intermediaries will be eliminated. SIdechains is one way Cardano is looking to solve this problem.  

Sustainability 

Cardano’s innovation will revolutionize the blockchain scene immensely, but sustaining the constant development of a blockchain entity is no easy task. Hoskinson himself, admits that this is a major hurdle. ICO’s are known ways of raising funds for a blockchain entity. ICO’s are, however, not sustainable. Cardono hopes to raise funds for development through a treasury model.

How does the treasury model work? Any time a block is added to the Cardano blockchain, part of the mining reward goes to developers. 

More than finance

Cardano’s native token, ADA, has been profitable over the years. It is however important to note that there’s more to Cardano than ADA. Cardano hopes to revolutionize not just the financial industry, it is harnessing the full potential of blockchain, promoting a blockchain revolution.

Like Cardano, there are several other companies doing exploits with blockchain. Cardano will definitely be among the key players innovating blockchain for mainstream adoption.

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Bolu Abiodun is a recent graduate of Theatre and Media Arts, Federal University Oye-Ekiti. A journalist with over a year's experience on the job. A former editor at American Media company Project Forward, he is a skilled content creator, social media manager and digital marketer.

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Blockchain Technology

Africa Blockchain Hackathon 2021 Edition Begins Registration 

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Africa Blockchain Hackathon
Image Credit: Africa Blockchain Institute (ABI)

The 2021 edition of the Africa Blockchain Hackathon, a brainchild of the Africa Blockchain Institute (ABI) is ready for take-off. The initiative was created to allow young professionals, tech enthusiasts, students and policymakers amongst others to gain exposure to the opportunity of Blockchain/DLT Digital Innovations through mentorship, career and business opportunities. The Hackathon Program is a product of the partnership with FreeTON Africa (Sub Governance). The Hackathon provides a controlled, structural and sustainable mentorship model as well as a community to nurture and empower developers with potential towards building DLT and blockchain solutions. Registration for the Hackathon is already underway and the deadline is fixated on August 25, 2021. 

The contest is done in collaboration with FREE TON, an Open Source (OS)  community project created by developers of the Telegram Open Network (TON). TON OS  has more features than the Ethereum Virtual Machine and is designed as a decentralized operating system capable of handling decentralized applications. TON OS also has a stack of components that can be used by developers to create powerful applications. By making these components Open Source, anyone or everyone can view and copy fragments of the code.

The contest is open to all Africa Blockchain enthusiasts, newbies, artists, developers, policymakers and students. There is a prize of over 62,000 TONs up for grabs for the winner. The contest is open to the 54 countries in Africa for participants to build Blockchain Applications on Free TON. The aim is to add value to the FreeTON Network and the continent will equally benefit from the applications.  

According to John Kanyiri, FreeTON Africa Representative and the FreeTON Africa Team, “… we once again look forward to identifying projects culminating from this hackathon as being not only a showcase of what Africa can offer the global blockchain space but also solutions to the continent’s challenges. The creativity, ambition and sophistication of our localized developers are quite evident in the Hackathons and this time around we hope to see the same. Discovery of new talent and exposure of the same from very remote locations of Africa was witnessed in the last Hackathon and we look forward to the same this time too.”

The Hackathon is open to covering aspects of the blockchain that academia needs to know giving ample information about how the blockchain works and the current and future applications needed to change the world from the blockchain Point of View. The contest is open to both newbies and experienced developers as some of the best technical experts in the blockchain community will be there to aid you. In other words, the event is open to all who seek blockchain knowledge. 

The contest will be carried out in three sections: country competition, regional competition, and continental competition. The country and regional competitions will be held virtually however, winners of the regional competitions will get an all-expense-paid trip to South Africa for the Finals. The winners will attend the Grand Finale which will be hosted in South Africa. Participants are allowed to work on topics or applications that are peculiar to the needs of the African continent. However, some applications may include: 

  • National voting platforms
  • Fintech infrastructure/Digital Wallets (to help those who do not have access to banking)
  • Land ownership and registry
  • High tech job creation
  • Human rights protections

There are lots of prizes to be won including an all-expense paid trip to South Africa for the winners of the regionals. Other prizes includes:

1st Prize: 25,000 TONs

2nd Prize: 15,000 TONs

3rd Prize: 5,000 TONs

4th – 20th Prize: 1,000 TONs

Participants will have to follow a simple process leading up to winning amazing prizes. The first step is to submit applications for the hackathon, meet all the requirements and pitch ideas. Next, participants have to receive Acceptance Confirmation Notification/Onboarding, form a team and then join the opening session. The last part of the process involves building the application and collaborating with team members. 

Notable Dates 

Applications open July 2021.

Application Deadline: August 25th, 2021.

Hackathon Dates:  September 6th – 24th 2021. 

Begin your application here:  https://bit.ly/africablockhack 

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Jelurida Africa Launches Blockchain-backed Certificate Platform, Digicert

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As one of its action plans for accelerating blockchain adoption on the African continent, Jelurida Africa has launched a blockchain-backed certificate-issuing platform called MyDigiCert. The platform allows issuers to store certificates on the blockchain, and equally give requisite access to intended recipients of the certificate(s).

MyDigiCert equally provides an option for certificates to be verified on the blockchain through the use of a unique hash which would be allotted to each certificate that is duly issued by the platform. According to the Managing Director of Jelurida Africa, Adedayo Adedajo, MyDigiCert was primarily created in a bid to curb the widespread certificate fraud in African institutions and universities. With blockchain-backed certificates, the risk of forging would be little to none, as one of the most prominent features of blockchain technology is its immutability.

To upload or create blockchain-backed certificates through the platform, users can sign up with telephone numbers across several African countries, and subsequently verify issued certificates from anywhere in the world. Asides creating certificates, recipients of such certificates may equally apply to receive them, provided that such recipients possess the unique hash code which is allotted to each certificate at the point of issuance.

Due to the fact that MyDigiCert operates an immutable system for creating, issuing, receiving an verifying certificates, issues such as certificate loss, certificate fraud or unnecessary delays in certificate issuance which often embattle the African educational system can be adequately curbed. Similarly, the product’s payment plans are specially tailored according to individual needs. As such, every person would be able to find a reasonably affordable payment plan to suit his or her needs. Payments can be made through a debit card or bank transfer, all powered by Paystack. The product is offered as a subscription-based SaaS platform, and there are equally provisions for institutions that may be seeking to fully run to product through their own servers.

An in-house testing was conducted on MyDigiCert on the 6th of May, 2021. The official date for the launch of the product has been slated for June 13, 2021. In commemoration of the official launch, a blockchain workshop will be conducted for African universities.

MyDigiCert is one of the several products which Jelurida Africa is set to launch this year. In addition to its pipeline of prospective blockchain products, the company is set to launch the first Europe-Africa blockchain bootcamp for European and African developers and policy makers across both continents. For partnerships on any of Jelurida’s products or the upcoming blockchain program, you may send a mail to info@jelafrica.com

Jelurida Africa
Image Credit: Jelurida Africa / CoinPost

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LVMH, Prada and Cartier Join Forces To Use Blockchain To Fight Counterfeiting

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Three top competitors in the European luxury market—LVMH, Prada and Cartier—have united forces to leverage blockchain technology to combat the worsening challenge of counterfeiting. Counterfeiting remains one of the major challenges that luxury brands face. In the 2020 fiscal year alone, $1.3 billion worth of goods were seized by the US customs alone. To address this issue, these three brands have signed up to the Aura Blockchain Consortium, a non-profit that utilizes blockchain technology to tackle counterfeiting.

The Aura Blockchain was launched earlier in 2019 by LVMH, in partnership with Microsoft and Consensys to achieve the same goal as the newly formed consortium. Aura will gather data on products at every step of the supply chain. Thus, through the Aura Blockchain, consumers will have access to the entire history of a product as well as a proof of authenticity that will be received electronically as a digital certificate after purchase. Each product will come with its unique ID that will be connected to the digital certificate on the blockchain.

According to a statement by Aura, through the use of the blockchain-based tool, “Consumers can easily and transparently follow a product’s lifecycle, from conception through distribution, with trusted data throughout, and thus strengthen their relationship with their favorite luxury brands.”

The Aura Blockchain will be available for use to any luxury brand. Participating brands will be required to pay a license fee and a volume fee annually, and more brands are encouraged to join the system. “We invite the entire profession to join this consortium to design a new luxury era enabled by blockchain technology,” Cyrille Vigneron, president of Cartier and a member of Richemont’s Board and Senior Executive Committee, said in a statement.

According to a press release earlier in the week, Bulgari, Cartier, Hublot, Louis Vuitton and Prada are already using the system and “several advanced conversations” are being held with other luxury brands to join the Consortium. Emphasizing on the importance of forging an alliance to fight counterfeiting via the Aura blockchain innovation, Toi Belloni, LVMH managing director, commented that, “By joining forces with other luxury brands on this project, we are leading the way on transparency and traceability. I hope other prestigious players will join our alliance.”

The Aura blockchain will significantly improve the security of luxury brand products and help consumers to ascertain the authenticity of these products. Dr. Martina Olbert, founder of Meaning.Global, adds that this alliance can drastically change the future of luxury. According to the Meaning.Global founder, “The alliance of three big players signals something important about the future of the luxury market dynamic. Luxury isn’t a game of competition. Luxury is a game of value creation. It is based on embracing the unique identity, authenticity and inner essence of brands. To function that way again, the luxury industry needs to become collective and tackle challenges as a whole.”

The use of blockchain in the luxury market will be significant in the restoration of trust, which is critical to the growth and survival of the system. “Brands can take back control over the customer relationships and focus on creating long-term value for themselves by putting the customers first and giving the customers transparent access to the luxury brands for communication, traceability and purchase,” adds Dr. Olbert.

Commenting on the importance of this blockchain innovation to the luxury market, Chris Ramey, founder of Affluent Insights notes that “In a world full of counterfeiters and poseurs, protecting clients is vital to protecting the luxury brand.” He adds that “Aura will secure the traditional pillars of luxury which define luxury brands and protect their wealthy clients.”

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