Studyum’s IDO will be hosted on OccamRazer, Cardano’s Smart DeFi Layer.
OccamRazer is the first complete launchpad solution for the Cardano ecosystem. Accommodating a vast range of fundraising profiles, OccamRazer will be the key that unlocks the Cardano ecosystems’ liquidity.– Occam.fi
If you’re new to the cryptocurrency world, you’re probably wondering about who or what Cardano is and why its ecosystem needs a launchpad. Will there be rockets? Is yet another billionaire flying off to space? – you might be tempted to ask. Well, the truth is Cardano does have some things in common with billionaires in space: a notable increase in size/numbers and a glimmering of the exciting things to come because of them. (Although, unlike the billionaires, Cardano is much better for the environment.)
Having probably heard of Bitcoin, and (less probably – if you’re new to the crypto world) of Ethereum, you might already have an impressively solid understanding of cryptocurrencies and how they work. But despite its popularity (it is currently the fifth largest crypto by market cap out of 1000+ cryptos), Cardano is a cryptocurrency you hear about only as you dwell deeper into the crypto world.
Let’s see what makes Cardano blend in with the other digital currency and what makes it stand out.
The blockchain reaction
What Bitcoin, Ethereum, and Cardano have in common is that they are all developed with the use of blockchain technology.
Blockchain technology is based on this idea of a massive online digital ledger/database. It is built on top of the internet infrastructure and functions in much the same way the internet itself does – by being decentralized. That means that there is no single server or node that holds all the data, but it is stored across all the nodes and all the servers without a single central authority.
In a nutshell, blockchain is a method of recording all the transactions that take place. When a number of transactions are verified, they are connected to form a block of transactions. This block is then “uploaded” to the network that is meant to become a block of chains (hence the name). Blockchain technology is the basis of most of today’s cryptocurrencies, as it is currently the most secure and transparent way to record transactions.
What makes the blockchain secure and transparent:
- Every transaction has to be verified by other users (this is called “mining” for Bitcoin and “staking” for Cardano). This implies checking if each transaction was made in accordance with the blockchain code.
- Bitcoin’s mining relies on 256-bit encryption. To decode the data encrypted in such a way you would need to check an inconceivable amount of combinations. (We’re talking 115…936 combinations, and the three dots stand for 72 more digits. Inconceivable!) Many cryptos use a similar hashing algorithm.
- The amount of miners for each transaction depends on the popularity of the currency, i.e. it is adaptable depending on the demand. As the popularity of a cryptocurrency grows, the power necessary to verify transactions also increases. This is done to ensure no single entity can hold 51% of the verifying power and take control over the network. (This is called a 51% attack!)
- The chain can only ever be added to (a.k.a. It has an “append-only” structure). No one can alter data in previous blocks.
- Anyone can verify transactions on the blockchain, that is, it’s permissionless. This means that the more people get involved, more computers are verifying transactions and more eyes are monitoring the network.
So, if all three cryptos – Bitcoin, Ethereum, and Cardano – operate on the blockchain and are decentralized, how are they different?
Bitcoin vs Ethereum
Difference #1: The principal difference between the two networks is in the potential functionality of their transactions. While Bitcoin transactions are simple records of bitcoins exchanged, bought, or sold, Ethereum transactions introduced another functionality – they can contain executable code. This enabled the use of smart contracts and dApps, among other things.
Difference #2: The mechanisms the networks use to cryptographically encode (hash) the transactions are also different. Bitcoin uses SHA-256, and Ethereum uses ethash. We mentioned a bit (pun intended) about the way 256-bit encryption works in the previous section. Ethash is special because it was made by combining two other algorithms which add to its security and speed. Keep this in mind as we go over the next difference.
Difference #3: As regards the time necessary to confirm a transaction on the networks (also known as block time), currently the Bitcoin network manages to do this approximately every 9 minutes. Ethereum does it in a matter of seconds.
Bitcoin / Ethereum vs Cardano
Ethereum, a second-generation blockchain platform, improved upon Bitcoin which is considered a first-generation blockchain platform. Cardano is a third-generation platform, so it’s not difficult to conclude which generation it’s supposed to be improving upon. Cardano accomplished this through Ouroboros, a proof-of-stake (PoS) algorithm used for verifying transactions.
Bitcoin and Ethereum are often criticized for their energy consumption due to their dependence on the mining process. If you’ve been closely following our Lessons, you know that things aren’t exactly as they seem, but, regardless, if there are alternatives, why not use them?
The PoS concept relies on staking, i.e. depending on the amount of specific crypto people own and stake to be used for transaction verification, they can contribute to the adding of a new block to the blockchain. Compared to Proof-of-Work (PoW) that Bitcoin and Ethereum use, PoS is more secure, faster, more environment-friendly, and more decentralized.
That’s right – all cryptocurrencies are decentralized, but some cryptocurrencies are more decentralized than others. Because you don’t need expensive and powerful computer equipment to verify transactions, more people are able to stake ADA (which is Cardano’s currency) than mine BTC (which is Bitcoin’s currency). This also means that the network is less susceptible to a 51% attack.
Ethereum recognized the value of the PoS concept and is planning to make the switch from PoW, but, so far, it has given only estimated dates of when the switch will occur.
Studyum – the Cardano-powered edtech platform
Another amazing thing about Cardano is the scope of its practical applications.
The Cardano ecosystem could solve numerous problems across industries. These problems – related to counterfeit goods and medications, verification of identities, supply chain tracking – are hindering the development of economies, especially in underdeveloped and developing countries.
Cardano has already been proven to be of use in the education sector – to verify qualifications, store data on student performance, and eliminate tampering of data. Consequently, Studyum has decided to enable the multi-chain concept in its modus operandi, and expand from the Ethereum ecosystem to Cardano as well. The Cardano network’s capabilities, scalability, and sustainability have created an excellent foundation for multidirectional development. And that is precisely why Occam.fi, Cardano’s Smart DeFi Layer, is the perfect launchpad for Studyum.