Cardano

In my opinion, Cardano may have more potential than any other coin.  It’s extremely early.  Not much is working yet.  A bet on Cardano today is a bet on the team and their vision.

https://coinmarketcap.com/currencies/cardano/https://coinmarketcap.com/currencies/cardano/

Cardano’s co-founder Charles Hoskinson also co-founded Ethereum, and served as their organization’s CEO.  I was move my interviews with the founder, including this one.

They are engineering Cardano the slow, painstaking way that one might engineer a space shuttle.  Ideas get peer reviewed.  He’s more interested in recruiting scientists, game theorists, and mathematicians than programmers.  Appropriately, a big part of the interview was him discussing the incentives of scientists, and why they want to work on Cardano (because they get to 1. publish research instead of keeping work secret 2. change the world and 3. get paid – the Cardano project is funded into 2020).

Some impressive ideas behind Cardano:

1. Why can’t a crypto currency get better at scale instead of worse?  Charles Hoskinson uses file sharing as an example.  The more people sharing files, the better the system works.  He doesn’t come out and say it, but it’s possible that Ethereum has some insurmountable scaling issues.

2. Philosophy of scientific peer review.  There may be a trade off here between building carefully and building quickly.  A bet on Cardano is a bet that sound engineering will overcome first mover advantage.

3. Governance built into the system.  Cardano has a system inside of it to vote on not only prioritizing development (like Dash), but funding it.

4. Block chain agnostic.  Much of the discussion was about Cardano working as an intermediary and letting you do work between other crypto currencies.  Here, I’m at the limit of my understanding.

5. Proof of stake.  Controversially, Cardano uses proof of stake instead of proof of work as it’s decentralized consensus mechanism.  In short: no mining.   You don’t solve a math problem to add transactions to the system.  Instead, the holders of coins get a change of adding transactions.

Amazingly, Cardano, which doesn’t have much infrastructure at all, already exploded into the #5 most valuable crypto currency with a total market cap of $26.5B.