Don't be intimidated by Cardano.
In the land of Cardano, science meets mythology.
And there's a whole new language to discover if you want to be prepared for the journey.
This is your Cardano starter pack.
Let's get it!
Welcome to BitBoy Crypto!
My name is Ben.
In this video, we'll be talking about Cardano
and catching you up on some of the most important terms
that you need to know to wrap your mind around this amazing crypto ecosystem.
There are a ton of labels and terms that are unique to Cardano.
Sometimes it can be a bit confusing
because they take the names of famous scientists or mythical creatures.
So let's break it all down.
First things first.
Cardano is a proof-of-stake blockchain.
Like all blockchains, it has to have consensus on the network.
Different blockchains use different consensus.
XRP uses XRP Ledger.
Cosmos uses Tendermint.
And Cardano uses Ouroboros.
That funny-sounding word has a lot of meaning behind it.
It stands for a symbol of a snake or dragon eating its own tail
to form a circle or infinity symbol just like how a blockchain is unbroken.
Pretty cool.
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Haskell is the programming language that's used by Cardano developers.
This is one of the many ways that Cardano sets itself apart from other blockchains,
which use a base coding language something like Python or JavaScript.
Haskell was named after mathematician Haskell Curry.
It's designed to be more predictable than other coding languages.
Haskell functions in a way where the same input will always produce the same output.
You would think that all coding would work this way,
but that's not actually the case.
Python and JavaScript allow for something that developers call impure functions,
where outcomes become, well, sometimes unpredictable.
Sometimes this can make coding more functional and give developers more freedom,
but it can also be more chaotic and more difficult to control.
Haskell, on the other hand, is built to support pure functions,
which has some constraints but is also more stable and secure,
something that's going to be necessary for a global blockchain network,
host financial transactions and possibly even votes during elections.
Another important term to know is Plutus,
which is a smart contract development platform on Cardano.
In ancient Greek mythology, Plutus is the god of wealth,
which is pretty awesome for a crypto name.
Plutus platform uses the Haskell programming language
that allows developers to write applications on the Cardano blockchain.
There's also a lot of help for developers
who aren't familiar with the Haskell programming language via the Plutus Pioneer program,
which recruits and trains developers to work with these new tools.
Next up is Daedalus.
Another name from ancient Greek mythology
that represents a skilled architect and craftsman.
This is a perfect name for a crypto wallet.
And that's probably why they chose it.
They are really killing it with these names.
Daedalus is an open source non-custodial wallet that was specifically designed for Cardano holders.
Daedalus is also one of the best places for Cardano holders to stake their ADA.
Daedalus is extremely secure because it is a full node wallet,
which means that a full copy of every transaction on the blockchain is synced to the application.
Aside from some cases of user error that happens with all self-custody wallets,
there have been no reported security breaches for this wallet.
There are a few limitations though.
Daedalus is currently only available for desktop
and it also only supports ADA and other native tokens on Cardano
but does not support any other blockchains.
So you'll need to use a different wallet for your other crypto assets.
Keeping all of your crypto assets in one place is usually a bad idea anyways.
You also need a decent desktop computer and good internet to run this wallet.
Mithril is another term you're going to want to know
if you're experimenting on Coronado.
Mithril is a fictional metal found in J.R.R. Tolkien's Middle-earth universe.
And it also tends to be the most expensive armor that you'll find in role-playing games.
Role playing.
I don't know if you're into that.
I'm not.
But in the Cardano universe,
Mithril represents a lightweight mode that enables fast sync times for users.
In this mode,
users don't need to download the entire Cardano blockchain
to start transacting.
In some cases, this can take hours or even days depending on your internet connection.
Instead, Mithril utilizes a cryptographic technique
known as recursive SNARKs to validate transactions,
making it possible for users with basic hardware or slow internet
to use the Cardano network
without needing to sync the entire blockchain history.
This makes it much easier to onboard new users.
So let's do a quick recap.
Ouroboros is the consensus protocol.
Haskell is the programming language.
Plutus is where smart contracts are made.
Daedalus is the wallet.
Mithril is the protocol for getting onto the network quickly.
Got it? Good.
Let's keep moving.
Hydra is also focused on scaling.
Hydra is the network of layer 2 protocols that are designed to help scale Cardano.
It's another term taken from ancient Greek mythology.
You might remember that Hydra is a monster with multiple heads.
One of them is invincible, making it very difficult to defeat.
Hydra achieves this by creating multiple heads,
each capable of processing a subset of transactions independently.
This approach allows for parallel processing of transactions,
dramatically increasing the network's overall capacity
without compromising on security or decentralization.
The name is fitting because there are multiple heads,
or state channels,
which are essentially off-chain pathways to handle transactions
before they go into blockchain.
State channels in Hydra basically help to offload transactions
from the main Cardano blockchain,
which reduces congestion and allows for faster and cheaper transactions.
It doesn't cause any major breakdowns in security
because all these transactions can be verified on-chain
if there are any problems.
Finally, we come to Voltaire.
One of the last pieces of the puzzle needed to come into place
to complete the Cardano ecosystem.
Voltaire represents the governance era of Cardano
with the implementation of a voting treasury system.
ADA holders will be able to use their stake and voting rights to make important decisions
about the future of the Cardano network.
The treasury system in Voltaire is funded by a portion of transaction fees and staking rewards.
And this money can be used for projects
that the community believe will benefit the Cardano ecosystem.
That's your starter pack for Cardano.
You're up to speed with most of the basic terms that you'll need to explore the Cardano ecosystem.
That's all I got.
Be blessed.
BitBoy out.