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Right now, there are countless of Cryptocurrencies that you can buy. But recently we've seen something called Cardona getting a lot of traction. But why is garden Oh so popular all of a sudden? What makes it so special compared to other Kryptos? Well, let's find out. Garden Oh is a new Cryptocurrency platform that was launched in September twenty seventeen after more than two years of development. It's rather different than other Cryptocurrency projects because it is built around.

Pew reviewed papers. So instead of riding a white paper and implementing its street to coat, the cardinal team actually make 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. Cardona claims to be the third generation of Cryptocurrencies. The first generation was Bitcoin and is essentially digital gold.

It's used to transfer in store virtual money, but it's plagued with scale, ability issues. The second generation started with Ethereum and brought a smart contracts. It improves scale ability somewhat, but not enough to become a global currency. The third generation, however, wants to take the previous two generations and approve upon them right now Cardona and Iona are both considered to be third generation block chains. Guardado wants to solve three big pain points of the current generation.

Scalability, interoperability and sustainability. Let's go over each one. We'll start with scale ability, which itself consists out of three problems that have to be solved. Transactions per second network bandwidth and storage transactions per second is 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 card, a nose or a Bora system solves this by adopting proof of steak instead of proof off work.

You probably know that Bitcoin uses the proof of work algorithm and lets everyone mind new block X. This process is slow and not only waste a lot of computing power. It also waste huge amounts of electricity. Cardona was much more efficient. It doesn't let everyone mind new blocks.

Instead, the network elects a few notes to mind the next block's. These air called the slot leaders. So to make this all work, Cardinal divides the time into epics, an epic split into slots a short period of time in which exactly one block can be created. The network that elects a slot leader for each lot, and this is the only person that can mind a block for that particular slot. Slot leaders listen for new transactions, verified them and then put them inside a block.

If a slot leader doesn't complete his task in time or doesn't show up, he loses the right to produce a block and has to wait until he is re elected by the network. This technique makes Garden oh, highly scalable because they can increase the amount of slots for EPIC, and they can run multiple epics in parallel. The next kill ability problem is network bandwith block cheese are stored in a peer to peer network. Each note in this network receives a copy of all new transactions. But imagine what happens if there are thousands of transactions per second.

The notes would need a lot of bandwidth to continuously download them all, and that is not very scalable. Instead, Garden A wants to split up the network into something that works by using a technique called Serena. Each note will be part of a specific sub network and can communicate with other networks if needed, much like the T. C P I P Protocol for the Internet and the final aspect of scalability is data storage block chain store, all transactions that have ever happened. But how do we handle this ever growing set of data? The grid on a 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 base right now is still fairly cheap. They'll tackle this problem later in twenty eighteen or beginning twenty nineteen. Big Problem number two is interoperability. This again consists out of two problems. First of all, there are many Cryptocurrencies 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 either.

Without an intermediate. The garden project aims to be the Internet of block chains or, in other words, ah 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 crypt, the world, because they don't have any metadata about that transaction. You see, they like to know who made the transaction and for what reason. However, this is also very sensitive information. So the Cardinal project wants to allow people to attach meditated to a transaction if they want to. This would make the crypto world play nicer with the traditional banking world, but again it would be up to the user to decide if he wants that we're 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 launch an ICE CEO or initial corn offering after an I c E o. D 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 I seo, just to get some cash? This is still an unanswered question, but it's clear that raising money in just once isn't very sustainable and doesn't promote continuous improvement.

Cardona intense 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 cardinal protocol. To do this, the Vela perceptive 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 cardinal 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 Cardinal project wants to achieve. And as you can see, it's quite ambitious and maybe a little bit risky.

They're trying to tackle many challenging problems. Take the Treasury model, for instance. It depends on a very voting system to prevent people from seizing control. The Granada project is very young and has still a long way to go. But their way of working is very different from other cryptocurrencies.

So garden Oh, might be the project that finally solves some longstanding 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.

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