The roadmap and trends of Cardano in 2024 can create a favorable ground for the development of the whole ecosystem. Understanding these aspects allows you to prepare in advance for creating Cardano-based applications and increase your chances of success.
This article will tell you about what Cardano blockchain is and how it works, familiarize you with the main phases of the project's development, and form an idea of the roadmap and trends of Cardano development in 2024. Read this article to the end to make 2024 the best year of your career.
What is Cardano?
Cardano is an open blockchain platform widely used to host global decentralized systems and applications. The Cardano ecosystem is named after the 16th-century Italian mathematician Gerolamo Cardano and was founded in 2015 by Charles Hoskinson, one of the developers of Ethereum.
Cardano has its own native ADA token. According to CoinMarketCap, ADA has over $11 billion in market capitalization. This indicator makes the token one of the top 10 cryptocurrencies, ahead of Solana and Polkadot.
The relationship between the three Cardano organizations. Source.
Experts are developing the blockchain from organizations such as the Cardano Foundation, Input Output (IOHK), and EMURGO. Their goal is to create a platform that can provide the following benefits:
- flexibility
- resilience
- scalability
Similar to Ethereum, in the Cardano ecosystem, you can develop an app, create smart contracts or create your token. The platform is top-rated among blockchain enthusiasts, which made it 2nd on the list of top protocols for developers in 2022.
Protocols with the highest number of average daily developers through 2022. Source.
Cardano was one of the first blockchains to use an alternative Proof-of-Stake consensus algorithm. This is an eco-friendly and more scalable way to ensure network decentralization.
Ouroboros
Ouroboros is a PoS consensus protocol used in the Cardano blockchain. It is inspired by the ancient symbol of a snake eating its tail, which represents a continuous cycle. In the context of Cardano, this cycle means the constant creation of new blocks in the blockchain.
The protocol ensures that the network reaches consensus on the next block to be added to the blockchain through "slot leaders" and "epochs."
Features of how Ouroboros works include parameters such as:
- Betting pools. These secure nodes store and maintain the pooled stakes of various parties. They are essential for transaction processing and block confirmation.
- Slot Leaders. The Ouroboros protocol divides each second into " slots " periods. Proportional to the stale ADA, each slot is assigned a leader responsible for generating a new block during that period.
- Epochs. This is the period during which all coins supplied are used to produce blocks. Each epoch consists of 432k slots, which equates to 5 days.
- Block Validation. Other nodes in the network verify the block created by the slot leader. If the block is valid and contains legitimate transactions, it is added to the blockchain.
- Incentives and rewards. In the Cardano PoS system, participants are incentivized to act honestly and follow the network rules. They are rewarded in the form of transaction fees and new ADA coins.
Ouroboros offers a verifiable way to randomize the validator. It ensures that all ADA token holders in Cardano have an equal chance of mining the block and receiving the corresponding reward.
The principle of single block validation in the Cardano blockchain. Source.
This approach eliminates the need for excessive computational power typical of Proof-of-Work and guarantees a fair mining model not found in any other PoS protocol.
Two layers of the Cardano blockchain
The Cardano ecosystem is built as a third-generation blockchain platform consisting of two layers, the settlement layer (CSL) and the computation layer (CCL), which serve as the fundamental components of each transaction.
Two layers of the Cardano blockchain. Source.
Cardano's two-layer architecture balances security, scalability, and flexibility. The separation of the compute and settlement layers allows each layer to improve and evolve while ensuring the overall integrity and stability of the network.
Settlement Layer
Cardano's settlement layer is designed to manage the currency movement between sender and receiver. It acts like a ledger, using a proof-of-stake consensus algorithm to create new blocks and validate transactions.
Compute Layer
The computational layer is designed to work with smart contracts and decentralized applications. Developers can create and implement various solutions requiring complex logic and blockchain interaction in this layer.
This layer allows the implementation of different smart contract languages and virtual machines, providing flexibility for developers. The most notable feature of this layer is the use of the Plutus and Marlowe languages.
Cardano Roadmap 2024
A roadmap is a well-thought-out development plan that helps attract new users and improve the technology. Knowing how the project has evolved in the past allows you to understand the value that the Cardano Roadmap in 2024 can bring.
Cardano's creators have divided the development plan into five distinct phases called "eras." Among them:
- Byron
- Shelley
- Goguen
- Basho
- Voltaire
Named after influential scientists and creative historical figures, they are designed to extend the functionality of the Cardano platform.
Byron — Foundation
This phase began in 2017 by creating an infrastructure enabling blockchain users to buy and sell native ADA tokens. The challenge for the developers was to create a solution that met the following parameters:
- secure transfer
- scalability
- low transaction costs
To achieve this goal, IOHK, a company created by Cardano founders Charles Hoskinson and Jeremy Wood, also released Daedalus, the first official desktop wallet for Cardano.
With Byron being the initial era of Cardano's development, the founders also had to ensure the platform was recognizable. To do so, they used various marketing tools to increase their presence in the info field.
Shelley — Decentralization
The Shelley era was a major milestone in Cardano's roadmap as it established a higher degree of decentralization. With the launch of the core network, the Cardano ecosystem moved from the federated Byron era to a system of community-driven nodes.
During this phase, an update called "Mary" was introduced, allowing users to create tokens based on the Cardano network.
Goguen — Smart Contracts
The Goguen update is the third phase of the Cardano blockchain, following Byron and Shelley. Goguen is named after American computer scientist and engineer Joseph Goguen, known for his work on type theory and programming languages.
The Goguen update will introduce several features, such as:
- Smart Contracts. These are self-executing agreements that can be used to automate various tasks. They are a key feature of many decentralized applications.
- Native tokens. These are tokens that are native to the Cardano blockchain. They differ from the ERC-20 tokens on the Ethereum blockchain because they do not use EVMs.
- Multi-currency ledger. The multi-currency ledger allows you to create and manage multiple currencies on the Cardano blockchain.
The Goguen update made Cardano a more robust and versatile platform for creating decentralized applications. It has also increased the usage of Cardano by private businesses and organizations.
Here are some of the benefits of the Goguen update:
- Extended functionality. Smart contracts and native tokens have helped developers build more complex and sophisticated DApps on Cardano.
- Improved scalability. A multi-currency ledger allowed Cardano to handle increased traffic more efficiently.
- Improved security. The Goguen update introduced new security features, such as enhanced smart contracts.
- Increased number of users. The Goguen upgrade made Cardano more attractive to developers and private companies.
The Goguen upgrade was completed in September 2021 with the Alonzo hard fork. It was a major milestone for Cardano, significantly increasing activity and user numbers.
Most of the DApps still functioning today were created during this era. Goguen kick-started the development of Cardano, creating a fertile ground for the start of the next phase — Basho.
Basho — Scaling
The Basho upgrade is the fourth major phase of Cardano blockchain development, following Byron, Shelley, and Goguen. Basho is named after the Japanese poet Matsuo Basho, known for his haiku.
Basho focuses on the scalability and interoperability of the blockchain. It introduced many new Cardano features, such as:
- Sidechains. These are parallel blockchains connected to the main Cardano network. They can be used to take some load off the main chain to improve scalability.
- Hydra. This second-layer solution will utilize sidechains to improve Cardano's scalability.
- Pipelining. This technique can improve Cardano's throughput by processing multiple transactions in parallel.
- Off-chain computing. A technique that allows some computation in Cardano transactions to be moved off the main chain.
The Basho update has made Cardano a more scalable and interoperable platform. Cardano has become attractive to companies that need a high-performance blockchain to develop an NFT marketplace, cryptocurrency wallet, launchpad, or decentralized exchange.
The benefits of using a Cardano-based NFT marketplace. Source.
Here are some of the benefits of the Basho upgrade:
- Improved scalability. Sidechain, Hydra, and off-chain computing are critical tools for enhancing Cardano's scalability.
- Increased interoperability. Sidechains have enabled Cardano to interoperate with other blockchains.
- Increasing the number of users. The Basho upgrade created a broad development space for DApps, attracting new participants to the network.
The Basho era lasts until today, 2021, creating a quality start for the launch of the final phase, Voltaire. Cardano trends in 2024 are expected to be tied to the development of the final phase.
Voltaire — Governance
The Voltaire era was named after French philosopher and political theorist François-Marie Arouet, known by his pen name Voltaire. It aims to create a robust, decentralized governance system that allows the Cardano community to influence protocol development and decision-making.
The key components of the era are:
- The Catalyst project. The project has several funding rounds, called Fund cycles, where community members can submit project proposals, and the community votes to fund the most promising ones.
- Decentralized Decision-Making. The Voltaire era aimed to empower ADA owners to participate in important decisions. Through voting mechanisms, the community could significantly influence the future trends of Cardano in 2024.
- Voting and rewards. Introducing voting mechanisms will enable ADA holders to participate in decision-making. In addition, this era will explore the possibility of rewarding ADA holders who actively participate in voting.
The two main aspects that Cardano governance targets are voting and treasury systems. Voting is designed to ensure that the community chooses the right priorities. The treasury system is related to the financial management of the Cardano network.
There will be three pillars in the Cardano governance system:
- MBO. This is an ecosystem institution that brings together companies, developers, individuals, and other network participants to shape and manage the future development of Cardano.
- Constitution. It defines the rights and principles of Cardano ecosystem participants.
- Democratic consent. All participants in the ecosystem should be able to voice their opinions and shape the decisions made.
It is important to realize that the Cardano roadmap in 2024 will only sometimes launch with Voltaire. Each of Cardano's eras develops in parallel, and even now, developers are working on solutions in the Goguen phase.
The importance of the Voltaire era in 2024
Governance is the most influential component of any social system. Ineffective governance systems are associated with most of today's crises, such as:
- legislative gridlock
- corporate corruption
- economic instability
The blockchain industry has previously felt the impact of poor governance systems.
One of the most significant early failures of community governance was the fight over the data size in the Bitcoin block. One side wanted to increase the block size to about 5 megabytes to accommodate the increased usage of the Bitcoin network. The other side wanted to keep the original block size at 1 megabyte and do some workarounds to accommodate more transactions.
In the end, neither side was able to change the other's mind, and the Bitcoin network split into two different blockchains:
Other forks have emerged, bringing us back to the idea of sustainability. Cardano aims to prevent these problems by creating a fair system of governance for multiple generations of users.
Thus, Voltaire needs to make the Cardano network a sustainable project by establishing a dialog with various stakeholders, including:
- ADA holders
- Cardano developers
- SPOs and others
As the number of Cardano projects grows, many have different priorities: which technologies to deploy first, where to allocate grants, which market to target, etc.
Voltaire looks at these issues and begins a discussion on how best to create a representative system for an international network with millions of users.
Cardano Trends in 2024
As the second-largest platform for creating DApps after Ethereum, Cardano is also setting the direction of the blockchain industry. Cardano trends in 2024 are expected to focus on developing new solutions that improve the scalability and security of the network.
Here are the key Cardano trends in 2024 that you should pay attention to:
- Development of new layer-2 solutions. The next year promises to provide the market with layer-2 solutions such as zkSync, Starknet, and Polygon zkEVM. Since Cardano is a separate ecosystem, developers need to take care to create their own L2 solutions.
- Creating applications in the GameFi sector. The gaming industry is the best way to introduce new technology. Based on this, game creation can set new Cardano trends in 2024.
- DEX Development. Cardano is a fast-growing blockchain. Hundreds of new projects appear every year. Users need to interact with them somehow. For this reason, Cardano plans to provide opportunities for building DEX exchange.
Cardano publishes weekly development reports, where you can track the developers' work. There you will find the total number of applications, tokens, transactions in the Cardano network, and much more.
An example of a week-long Cardano development report. Source.
Monitoring these reports will help you track Cardano trends in 2024 to use them to build your DApps.
Conclusion
Cardano is one of the most promising blockchain projects with much potential for growth in 2024. Voltaire updates will bring many new features to Cardano, and other projects developers are working on will help create new trends for Cardano in 2024.
Using Cardano as a blockchain development platform offers the following benefits:
- Scalability. The Goguen and Basho updates introduced many tools to improve this parameter, such as sidechains and Hydra.
- Efficiency. The project uses a proof-of-stake consensus mechanism, which is more energy efficient than the proof-of-work used in Bitcoin.
- Security. Cardano provides security features such as enhanced smart contracts, decentralization, and dual-signature wallets.
- Community. The project has a large and active community on social media and several active development teams.
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