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Cardano’s Blockchain Development Trends in 2023

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Cardano (ADA) blockchain is an open-source public network that employs a Proof-of-Stake algorithm — Ouroboros. The total token offering is limited to 45 billion, and 75% are already circulating. The project is one of the main competitors of Ethereum, Tron, and Polkadot. The developersd do their best to bring in new users by scaling and using minimal energy compared to BTC for mining cryptocurrency. 

Cardano is the primary blockchain and level 1 protocol; hence, it can verify operations without other networks. Will ADA outperform the competitors, what changes the project expects, and are there fundamental advantages that provide a promising future? Let this article answer these questions and highlight the network’s trends for 2023

Cardano (ADA) history

Charles Hoskinson started the project in 2014. He and Gavin Wood worked on ADA and Ethereum, yet Charles understood that similar technology could and must bring income. In other words, it must be a company for earning and transacting with banks, and the project must be open to cooperation with other corporations, institutions, and governments. These thoughts made Charles exit the community and launch IOHK (Input-Output Hong Kong). 

In the following years, he worked on the project. EMURGO investment plan helped it happen. As a result, Cardano appeared. They named the platform after an Italian mathematician, doctor, astrologist, and engineer Girolamo Cardano. He didn’t want power, a prestigious job, or other honors; the mathematician's primary goal is to perpetuate the name, and part of this has been accomplished with the Cardano blockchain.

Cardano is a new star in the cryptocurrency world that is not wholly lit yet. The project remained in the public eye during 2021-2022; therefore, it will be promising in 2023

In 2015, the project had clear plans and targets for building a multifunctional tool that could interact with other cryptocurrencies. 

Considering the trends, ADA price, and other features, it is worth noting that Cardano is still developing and not finished. The system of peer-to-peer transactions is scientifically proven and wants to unify BTC transactions using DApss and smart contracts, which have strict rules.

EMURGO helped numerous applications on the blockchain, including:

  1. Blue Korintji — a project for controlling coffee supply chains.
  2. Yoroi Wallet — a straightforward and easy-to-use technical wallet for storing ADA cryptocurrency.
  3. Collaboration with NAPM.
ADA is the network’s native token. It is necessary for internal operations and rewarding those who support the consensus via staking. Transactions within the network are highly-secure in a multi-level system. DApps help to create an interactive economy with ADA coins. 

Cardano’s team

Cardano’s developer brought together the brightest talent worldwide to make Cardano Foundation, which includes 24 nationalities. They work in 15 countries on four continents. The head office is in Switzerland.

Cardano team

Cardano’s project team

The central team includes about 30 people. This approach is significantly different from other blockchains whose target is to have a completely public project developed by the community.

ICO

ADA’s token sale started in 2016 from 30.09 to 31.12. They offered 57.6% of the total emission and accepted only BTC for payment. After the token sale, the company had 62 million dollars. The average price was 0.0024 dollars.

In two years, the coin reached 1 dollar per coin and repeated in 2021. 

ICO on different steps

ICO on different steps
The project didn’t offer a classical white paper. The creators published information on the IOHK website. After the publications, the technologies can be implemented in the network, called ‘’vision papers’’.

Cardano Roadmap

A full-blown blockchain strategy consists of five phases. Let's take a closer look at the roadmap.

Byron

Considered to be the initial phase of the ecosystem. The start date is September 2017. At the very beginning, the basic elements were created, the calculation level prepared for decentralization.

Shelley

In this phase, with the help of the Ouroboros Genesis consensus algorithm, the platform was 100% decentralized. Stacking was added in 2020, with which ADA token stacking pools appeared on the network.

Goguen

The aim of the stage is to design a framework for dApps. Within this era, several major updates have already happened. For example, at the end of 2021, the network implemented its standards for native tokens. Additionally, they created a computational layer to perform smart contracts. There are several elements in this layer:
  1. Plutus, a place to create smart contracts and execute code. The platform is developed in the Haskell language.
  2. Marlowe - a language for writing financial smart contracts. Professionals can work in blockchain with the help of this element without deep knowledge in programming. A special portal is available to developers.
The Vasil update was implemented successfully in 2022, reducing the cost of executing smart contracts and the size of transactions, increasing the speed of the entire ecosystem.

Basho

This is the 4th stage of blockchain improvements to maximize scalability and interoperability. The developers anticipate that this era will improve the underlying blockchain performance and allow the network to accept high transaction volume applications.

The key feature is sidechains that are technically compatible with the Cardano mainnet. They will give the ability to transfer loads from the public network and will be suitable for the test environment.

During the Basho phase, new account models will be developed, but the main network will still use the UTXO model. Transition between UTXO and other accounts is going to be available, which will have a positive impact on interoperability. It will also give a boost to new use cases.

Voltaire

The final era at this point includes the development of a decentralized onchain management and treasury system.

Technical aspects

Before Ethereum 2.0, Cardano was one of the leaders in the cryptocurrency market and ranked TOP 5. PoS consensus algorithm was one of the main reasons for its success since scaling it is easier than the PoW model. 

Proof-of-Stake consensus algorithm 

According to IOHK, Cardano is the first highly-secure proof-of-stake algorithm. While PoW requires computing power, PoS needs only some server memory.

UTxO is an alternative to the account model of registration and data verification.

UTxO is an alternative to the account model of registration and data verification.

Instead of using video cards, CPUs, and other equipment, staking accepting cryptocurrency to the contract helps to find the cache. Likewise, it provides ledger protection against attacks since any methods of violating the consensus or other misbehavior result in charging coins. 

Ouroboros protocol

Classical BFT PoS protocols coordinate chain relevance according to 75% of participants’ votes. 

Ouroboros protocol

Ouroboros protocol. Source

Within the Ouroboros protocol, validators are called leaders and are determined randomly. Moreover, each has the right to verify a block, and then they become canonical and get more chances in the random pick. Bitcoin has a similar structure; the operations there are reliable only after 3-5 approvals. 

The staked amount defines whether the participant will become a leader. In other words, the more ADA cryptocurrency you own, the higher the chance. The algorithm considers the possible influences on the results of the choices of individuals or groups of people, calculating specific probabilities, preventing this.

Yet, not only leaders are responsible for validation. Like BTC nodes, the verifier saves the chain and controls the blocks.  The re-election occurs randomly mathematically as each epoch progresses. Ouroboros gives a reward in ADA coins.

However, some call the protocol unrealistic and impractical, yet the platform develops and becomes more sophisticated.

CSL and CCL

The project's architecture has two layers:
  1. Cardano Settlement Layer (CLS) is a payment layer for accounting. It fixates accounts and helps to transfer tokens. 
  2. Cardano Computational Layer (CCL) is a computing layer for deploying smart contracts. The developers have calculated the likely legal subtleties in advance, including the possibility of regulating cryptocurrency assets to store information and gain access to it at the legal level.
During the summer of 2020, the developers announced Shelley updates that had to fix the issue of the overcentralized validation mechanism and switch the network to decentralized pools. In May 2021, they cut the preferred node share from 12% to 0% and started distributing the rewards among all users and stakers of ADA. 

At the start, the network supported about 1800 pools that were ready to provide validation for the Cardano network. Smart contracts help the developers to create and manage decentralized applications. The platform supports several programming languages:

  • Marlowe;
  • Plutus;
  • Haskell. 
Thanks to this trend of updates, even a non-technical individual can write code and commands.

The next step is scaling. Cardano launches sidechains, segments the network, and works on increasing the bandwidth to several thousand transactions per second. The accounting methodology also improves and functions with the traditional Cardano UTXO model. 

Users and holders can vote to introduce code changes and accept offers. Some resources go to a special fund, and democratic means help to produce assets to maintain the platform. 

Mining Cardano

The users who stake ADA coins can become leaders. By staking more coins for validation, they increase their chances. 

The network doesn’t have classical mining as PoW consensus does. Any production cycle has separate epochs that averagely last five days; there are 432 thousand slots within one epoch. The blockchain employs a multi-side computing system. 21.6 thousand leaders receive rewards within one epoch. 

Since 2020 the network has employed decentralized staking. Initially, there were 13.8 billion coins staked. Every five days, 0.3% of the reserve goes distributed within the validators.

Cardano staking mechanism

Cardano staking mechanism

When staking ADA cryptocurrency became famous, almost 75% of all coins in circulation went to pools. It reduces the reward yet displays the asset’s price. About 5-7% yearly is the average income from staking. 

Public pool and operators 

Staking pools are the most straightforward method of earning with ADA. The cryptocurrency wallet allows to stake tokens and automatically profit. Daedalus and Yoroi crypto wallets can help with staking. The early rate can periodically change what depends on the interest.

The operators’ task is to have a server and permanent access. The minimal requirements are 4 GB RAM and 24 GB HDD. The control is done with a pair of wallets, a hot one with an update every quarter, and a cold one. Together, they create a certificate that gives access to validation.

Cardano’s website main page

Cardano’s website main page
The operators are necessary for servicing a nodes pair:
  1. Core requires a certification for making blocks
  2. Relay doesn’t require a certificate and making blocks; it communicates between the blockchain and nodes. 
ICO took place in 2017, and in several months, the native token price grew from 0.2 to 1.24 dollars and reached the peak capitalization of 600 million dollars. After a while, there was a decrease in the asset's value, but in the end, there was another wave of growth, and in just one year, the price of cryptocurrency ADA went up to $3 per coin.

In 2023, considering the possible changes and trends, there is a chance that ADA will reach 3 dollars again. Some experts are sure that the token can cost 5-10 dollars.

price of cryptocurrency ADA

Price of cryptocurrency ADA

Cardano Foundation

The roadmap shows that the last point in development is giving Cardano to the community management. The blockchain is near the future since the general idea is the freedom of rights, privacy, and equality. 

The foundation collects a share of the native coin. Getting new cryptocurrency requires voting to introduce change and announce the budget. Anyone can offer their ideas; if they need advertisements, programmers, and other expenses, the foundation will cover them and transfer the coins to the address with smart contracts. 

Employing Cardano

The actual information on blockchain employment is yet to come. This factor causes a lot of discussions about the network. Some don’t see this project's point since Ethereum and other blockchains exist. In fact, 2020 showed that Ethereum is not that fast and comfortable even compared to Cardano. 

Transaction processing speed, fees, additional functions of smart contracts, and validation decentralization are significant advantages. Furthermore, the developers do not target to improve it utmost. Probably, the platform will become independent in 2023. Numerous crypto users are excited about freedom; hence, the users want the developers to have no financial interest in it. 

Cardano often helps with funding the university and does charity. According to the legal framework, it is possible to categorize access for users so that they work only with specific parts of the blockchain. This factor makes the network attractive to the business sector and different states.

Cardano’s advantages and disadvantages

Cardano’s advantages and disadvantages

Despite the possible difficulties, and disadvantages, the blockchain actively grows, and the developers don’t give up. IOHK is the driving force for this project, and some trends in 2023 can significantly impact the efficiency, functionality, and value of the native token. 

Cardano development trends

The Cardano network has received many important changes in the last year which could have a positive impact on their native token value in the future. On 01.02.2022, IO Global announced that the size of each block will be increased by 8KB and the total volume will be 80KB, giving more bandwidth to the blockchain. There was also information about a proposal to increase the Plutus script memory size per transaction.

Melhores ADA Cardano NFT Marketplace platforms

Melhores ADA Cardano NFT Marketplace platforms

According to the company's announcement, such a change is part of the network optimization that was in the developers' plan. Cardano is waiting for several stages of improvement, scaling up, which will give an increase in demand, said the fund.

Cardano-based SundaeSwap exchange launch

Cardano unveiled a decentralized exchange based on its own blockchain in early 2022. The move was made to provide liquidity to the network. Immediately after the launch, difficulties appeared, users began to complain en masse about the long processing of transactions. The developers responded that the processing of all orders could take several days, but guaranteed the execution of all transactions in the order they were received. The team stated additionally that this was temporary and would be resolved soon. They themselves anticipated additional workload once the protocol was launched.

Vasil update

On 03.07.2022, there was a hardforward called Vasil. According to Charles Hoskinson, such an update should have a significant impact on the performance of the entire network. Initially it was planned to conduct the update in June, but the creators postponed the launch due to technical reasons.

On 22.09.2022 there was Cardano Vasil network hardfork. Such event, according to the community, is the most complex update that has ever been implemented Cardano. With it should reduce the development costs of decentralized applications by about 30%, while increasing bandwidth.

Developers believe the update is a successful one and experts are confident that the hardfork does not provide significant changes, but there is potential and great prospects for the project. Thus, Basho - Epoch 4 blockchain development will be aimed at scaling the network. In the Voltaire era (the final stage), the network will be a self-sustaining system, so the blockchain will no longer be controlled by Input Output.

Hoskinson said Voltaire will be on the market by the end of 2023 and that would be the end of the original roadmap.

Staking Cardano on Coinbase

In March 2022, the Coinbase exchange launched ADA staking. Token holders were allowed to participate in staking via delegating, a complex implementation process. Coinbase simplified the reward for staking. 

Exchange’s representatives say that ADA is in the TOP 10 significant assets in the crypto market; this is a complete network created as an evolution of Ethereum’s blockchain. After this claim, the token’s price grew and went above 1 dollar. 

Launching Fund8 on Project Catalyst

Fund8 on Project Catalyst appeared in March 2022. This platform is a fund that gives customers funding in the ADA to apply funds to improve the protocol.

With the launch of Fund8, it was decided to allocate $16 million for various initiatives. Cardano is on record saying that several issues have been identified, voted on, and decided on for funding that will improve the ecosystem for dApps and developers within the blockchain.

Changes in state authorities 

The blockchain founder believes that his development can significantly change the structure of government institutions, transforming them into modern processes of functioning from archaic methods.

At The Crypto Mile conference, the network's founder promised that his network could improve governance in a global sense. For example, the technology can create a tax revenue program; they will have an open code, and everyone will be able to see the funds' purpose and origins.

As society globalizes, blockchain will improve interconnectivity, guaranteeing the secure, simple, fast transfer of information. Cardano blockchain can improve transparency, an essential factor in enhancing public accessibility.

Autonomy would help eliminate one controlling authority. Hoskinson believes that if no single entity can handle the situation, it is the most efficient method to conduct any business and eliminate fraud and waste.

Cardano is a beneficial digital asset 

The project has several unique features. Charles Hoskinson even could not think about their current success and income. The blockchain fights many issues, and Cardano's main benefits are:
  1. The guarantee that the blockchain is designed to satisfy investors’ and clients’ needs since the professional support constantly functions.
  2. A chant and mail support that works 24/7. Investors can always ask for help if necessary. 
  3. The desire to provide income for investors by setting high landmarks for users.
  4. Transparency and privacy for all operations.
  5. High operating speed.
  6. The ability to intercept fictitious feasts and cheaters.
An entire game universe on Cardano waits for the users
An entire game universe on Cardano waits for the users
ADA is an accessible coin; if there is investment capital and trust in the platform and blockchain, it is worth investing a share in 2023 and the following five years. The asset has a history and statistics. According to the experts, Cardano will have an excellent position in the market in the following years. 

Community

The entire project community works and aims to bring profit to its users. Cardano Foundation got support from Input Output Hong Kong and Emurgo. IOHK handles the texture, and Emurgo takes care of the commercial implementation. Together, they are responsible for adjustments in the Cardano ecosystem. The portfolio is constantly being studied, with detailed verification by qualified staff before the product goes public.

The goal of the Cardano and EMURGO partnership is to stimulate the custom tool stack for the entire blockchain, accelerating the development of decentralized applications. This will allow creators to increase their own capabilities for Cardano solutions, helping to develop versatile applications.

Monthly statistics on the network

Monthly statistics on the network

The community actively provides data on the native token and leaves history behind them. The coin has clear aims and strategies; therefore, Cardano stands out among other projects.

According to Frederic Gregaard, Cardano Foundation has the dedicated talent to help the project reach new heights in 2023. He thinks that there will be numerous positive changes for the project in the future. 

Cardano and the environment

Cardano began a partnership with Veritree in February 2022, a company that works to benefit forests by restoring them. At that time, 1 million trees were planted. The essence of this collaboration is that any ADA token holder could send coins to improve the environment through the Cardano network. Users had the opportunity to donate 1 million coins and in return they were given certificates of tree planting. The exact location and data about the plant itself are listed inside the document.

Cardano's onchain metadata allows Veritree to simply capture and transmit the geolocation, photos and other unique data that will be necessary for reforestation. All information is accessible, traceable and permanent. It cannot be changed.

Recent updates

The most memorable update of the past months is Alonzo Purple. Today the developers are improving Hydra by bringing in new people.

Alonzo Purple made many recent changes in smart contracts, and there was room for NFT. The team targeted 100 million active wallets in May 2021, but in just six months, the volume doubled, giving a crucial level of support for the blockchain and improving scalability.

Hydra updates are a vital part of the network. It is a Level 2 scaling solution, allowing the network to move forward in commercial applications. It assembles 1,000 nodes that can process 1,000 transactions per second. 

Many factors speak to the need to invest some money in Cardano. The blockchain itself is open source, simple transactions, and any application, a project built on the blockchain is tested, achieving reliable results with scientific validation. The following reason to invest is the continuous development of the network and the team. Lastly, the algorithm that sets Cardano apart as an efficient network. 

Scaling the Cardano blockchain

The performance of the network is at 250 transactions per second (TPS), which is several times less than other known blockchains. Developers have been aware of such a problem and the IOHK data presents several solution options to increase the speed:
  1. Pipeline processing and incorporation of the method into the Ouroboros consensus algorithm. The solution makes it possible to speed up the recognition of new blocks. The developers want to bring the distribution speed up to 5 sec.
  2. Input Endorsers. Their introduction into the protocol will increase the speed by controlling new transactions with their allocation and collection into blocks. The plan is to develop 2 blocks (for transactions and consensus achievement).
  3. Multi-level pricing. For now, all transactions are on a first-come, first-served basis rather than through prioritization. With increasing loads, the network will work with delays and there is a possibility of DoS attacks. The implementation of the new principle will help add flexibility to the entire ecosystem through the specifics of commission formation. Each block will include 3 levels - fair, balanced and immediate.
  4. Already working alpha version and in 2023 could be full implementation of them in blockchain.
  5. Allows using additional channels to carry out transactions outside the blockchain through the smart contracts of the main network.
  6. The project was proposed in 2021 and its main task is to increase the efficiency of information synchronization between software working in the ecosystem. This will have a positive impact on the time it takes to validate messages using fast multisignature aggregation.

Conclusion

Cardano is not the single solution that managed to outperform Ethereum, especially in integrating PoS. This factor allows speeding up the transaction processing several folds. The ecosystem grows and has an excellent team behind it, including hundreds of participants, financing, and other necessary attributes. 

The executives regularly post innovative materials and research almost every week. They continue working on making the project decentralized. 

The users must keep an eye on the project and consider the actual influence of the blockchain and native token on the economy and people. 


Cardano’s Blockchain Development Trends in 2023 key takeaways:
  1. Cardano (ADA) history
  2. Cardano’s team
  3. ICO
  4. Cardano Roadmap
  5. Byron
  6. Shelley
  7. Goguen
  8. Basho
  9. Voltaire
  10. Technical aspects
  11. Proof-of-Stake consensus algorithm 
  12. Ouroboros protocol
  13. CSL and CCL
  14. Mining Cardano
  15. Public pool and operators 
  16. Cardano Foundation
  17. Employing Cardano
  18. Cardano development trends
  19. Cardano-based SundaeSwap exchange launch
  20. Vasil update
  21. Staking Cardano on Coinbase
  22. Launching Fund8 on Project Catalyst
  23. Changes in state authorities 
  24. Cardano is a beneficial digital asset 
  25. Community
  26. Cardano and the environment
  27. Recent updates
  28. Scaling the Cardano blockchain
  29. Conclusion
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