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Do my capstone associated services internet of things concept pdf for money pedro point surf report right now there are countless of cryptocurrencies that you can buy but recently we've seen something called Cardno getting a lot of traction but why is cardano's so popular all of a sudden what makes it so special compared to other kryptos well let's find out Cardno is a new cryptocurrency platform that was launched in September 2017 after more than two years of development it's rather different than other cryptocurrency projects because it is built around peer reviewed papers so instead of writing a white paper and implementing it straight to code the Cardinal team actually makes sure that experts from around the world read their papers improve them and agree with the outcome this is a very different way of working Cardno claims to be the third generation of cryptocurrencies the first generation was Bitcoin and is essentially digital gold it's used to transfer and store virtual money but it's plagued with scalability issues the second generation started with etherium and brought a smart contracts it improved scalability somewhat but not enough to become a global currency the third generation however wants to take the previous two generations and improve upon them right now Cardno and iota are both considered to be third generation blockchains Cardno wants to solve three big pain points of the current generation scalability interoperability and sustainability let's go over each one will start with scalability which itself consists out of three problems that have to be solved transactions per second network bandwidth and storage transactions per second as the most obvious one in order for a cryptocurrency to become a global payment system you need to be able to handle a lot of transactions per second Cardinals or a Borah system solves this by adopting proof of stake instead of proof of work you probably know that Bitcoin uses the proof-of-work algorithm and lets everyone mine new blocks this process is slow and not only wastes a lot of computing power it also wastes huge amounts of electricity Cardno is much more efficient it doesn't let everyone mine new blocks instead the Network elects a few notes to mine the next blocks these are called the slot leaders so to make this all work Cardno defines the time into epochs an epoch is split into slots a short period of time in which exactly one block can be created the network then elects a slot leader for each slot and this is the only person that can mind a block for that particular slot slot leaders listen for new transactions verify them and then put them inside a block if a slot leader doesn't complete his tasks in time or doesn't show up he loses the right to produce a block and has to wait until he is reelected by the network this technique makes Cardno highly scalable because they can increase the amount of slots per epoch and they can run multiple epochs in parallel the next scalability problem is network bandwidth VAR chains are stored in a peer-to-peer network each node in this network receives a copy of all new transactions but imagine what happens if there are thousands of transactions per second the nodes would need a lot of bandwidth to continuously download them all and that is not very scalable instead cardona wants to split up the network into sub networks by using a technique called rina each node will be part of a specific sub network and can communicate with other networks if needed much like the tcp/ip protocol for the Internet and the final aspect of scalability is data storage blockchain store all transactions that have ever happened but how do we handle this ever-growing set of data the Carano team is thinking about implementing techniques like pruning compression and partitioning however they don't consider this a top priority at the moment because storage space right now is still fairly cheap they'll tackle this problem later in 2018 or beginning 2019 big problem number two is interoperability this again consists out of two problems first of all there are many crypto currencies out there but they don't really work together and secondly banks and governments shy away from cryptocurrencies so the Cardinal team assumes that in the future we won't have one point to rule them all instead multiple different currencies will exist side-by-side each with its own protocol and rules right now these don't talk to each other you can for example transform your Bitcoin into ether without an intermediate the Cardno project aims to be the internet of blockchains or in other words a blockchain that can understand what happens in other block chains this would mean seamlessly moving assets across multiple chains then there's also the problem with governments and banks they shy away from cryptocurrencies because they don't adhere to regular banking laws it's hard for them to trust a transaction in the crypto world because they don't have any metadata about that transaction you see they'd like to know who made the transaction and for what reason however this is also very sensitive information so the card owner project wants to allow people to attach metadata to a transaction if they want to this would make the crypto world play nicely with the traditional banking world but again it would be up to the user to decide if he wants that or not the final problem that the team intends to solve is sustainability right now there are a lot of people who want to build a company around crypto currencies to raise money for their company they launched an IC o---- or initial coin offering after an IC o---- the team ends up with a lot of capital that they can use to fully start their company but what happens if after a couple of years this money runs out how will they make sure that the development of their technology continues should they create a new coin and hold another IC o---- just to get some cash this is still an unanswered question but it's clear that raising money just once isn't very sustainable and doesn't promote continuous improvement Cardno intends to solve this problem by creating a Treasury the idea is that the Treasury will receive a small percentage of every transaction that happens on the network the Treasury itself is a special wallet that isn't controlled by anyone instead it's a sort of smart contract that can release a part of the funds to developers who wish to improve the car no no protocol to do this developers have to submit a proposal to the community saying what they want to change and how much money they need for it the community can then vote on the ideas that they think is the most important after a certain amount of time the Treasury takes the most popular proposals and gives them enough money so they can develop their improvements over time the Treasury model will keep Cardno sustainable by providing a continuous stream of money that can be used to continue to do research and to improve the system so far we talked about all the things that the Cardona project wants to achieve and as you can see it's quite ambitious and maybe a little bit risky they are trying to tackle many challenging problems take the Treasury model for instance it depends on a very folding system to prevent people from seizing control the Cardano project is very young and has still a long way to go but their way of working is very different from other cryptocurrencies so Cardno might be the project that finally solves some long-standing and fundamental issues but time will tell so that concludes this video I hope you learned a lot and if you did make sure to subscribe to my channel and like this video thank you very much for watching and I'll see you in the next video you capstone credit union Graduate School of Journalism.