Cardano enters a new evolution phase with Shelley Testnet. Focus on decentralisation, power efficiency, community engagement and much more in an exclusive interview with Charles Hoskinson
In the latest episode of FinancialFox, crypto guru Stefania Barbaglio welcomed Charles Hoskinson, co-founder of IOHK and Cardano (ADA), one of the most prominent and most followed innovators in the blockchain/crypto space. In this three-episode series, Charles talks about the much anticipated Shelley test, updates on Cardano’s next phases and plans, more socially relevant partner projects, and the crucial element of community engagement.
Cardano was developed to be more than a cryptocurrency: a smart contract platform which seeks to deliver more advanced features than any previous protocol. It is the first blockchain platform to evolve out of a scientific philosophy and a research-first driven approach. It also ranks within the top 15 cryptocurrencies by market capitalisation.
Input-Output Hong Kong (IOHK) is the brains behind the Cardano blockchain. The team comprises scientists and engineers committed to developing decentralised open-source technologies that can cause cascading disruption.
These are exciting times for Cardano enthusiasts as the team gears up to complete the Shelley testnet. According to Hoskinson, after Shelley and planned updates, Cardano will be a true ‘third-generation cryptocurrency’ whose mission is to unlock a new era of development, powered by technology and decentralisation.
Shelley will see the introduction of a delegation and incentives scheme: a reward system to drive stake pools and community adoption. By the end of the Shelley era, Cardano should be 50–100 times more decentralised than any other extensive blockchain network. The Shelley era represents the natural maturation of the network, through which it emerges more useful, rewarding, and valuable for users. Shelley will set the stage for a fully distributed system.
This past weekend, IOHK announced the successful set-up of the Shelley-incentivised test network via Twitter, allowing for the creation of stake pools. For those wishing to participate, IOHK has released a series of tutorial videos exploring the different stages of building up a functioning stake pool in the testnet. With the new incentivised network now up and running, pool operators are set up and ready for the Rewards wallet launch next week.
While other cryptocurrencies like Bitcoin are criticised for their high energy consumption, Shelly and Proof-of-Stake will enable Cardano to improve scalability and energy efficiency, bringing significant value and advantages without compromising on security or decentralisation. The entire Cardano network runs at a fraction of the power cost of equivalent proof-of-work blockchains, using the electricity equivalent of a single house, rather than that of a small country.
Hoskinson talks about the future of digital payments and AdaPay, a solution developed by the Cardano Foundation and COTI launched in November which allows merchants to accept ADA payments with a near-instant settlement into 35 fiat currencies.
Despite its advanced technology and expert team, Cardano has been struggling to break into the mainstream crypto industry and compete in the major league, which has disappointed some members of the community. Charles talks about the challenges inherent in crypto success and the importance of having a project with a solid mission behind it.
In the second part of the interview, the Cardano founder shares his views about quantum computing and the impacts of this new technology. It is a significant development, but it may take a while before quantum computing forms part of mainstream technology. Nevertheless, Charles believes that innovation is a process, and evolving technologies are a part of this.
Cardano is a social project as much as a financial one. It is not just payments; it’s about applications that can improve how things work in today’s world.
Stefania and Charles also discussed the signficant opportunity within the fashion and luxury sector to improve supply chain management and brand reputation and trust. Cardano has recently partnered with New Balance, the footwear giant, to allow people to establish ownership of the products they buy as an effort to combat counterfeit products. Blockchain also has the power to make the second-hand retail market more transparent and better regulated.
The food industry, land registry, digital identities and digital assets also offer considerable opportunities for implementation of blockchain technology.
Innovative technology developers like Cardano have the ‘once in a lifetime’ opportunity to enter markets in developing economies, where they can introduce their technologies to have a high impact on social and economic structures.
Cardano offers the technology necessary for systematic change. With the multitude of applications that blockchain offers, a decentralised technology can enable digital payments, smart contracts and food traceability, to name but a few.
In the last segment of the interview, Charles expands on the crucial role played by the community and the importance of engaging with people to raise awareness about Cardano and cryptocurrencies in general.
He also comments on the MMA fight with Chico Crypto. Is it going to happen?
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