Table of Contents
Cardano is respectively the son of three companies:
- Article on Cardano Foundation: defines itself as a non-profit organization based in Zug, Switzerland, whose primary purpose is to standardize, protect and promote the Cardano protocol technology, regulate its financial relationships, government agencies, and develop strategic partnerships with other projects.
- Article on IOHK: Input Output Hong Kong is an engineering and technology company founded by Jeremy Wood and Hoskinson. IOHK is engaged in the research and development of ADA cryptocurrency and is bound by a contract with the Cardano Foundation. It is the platform’s main developer, which academically researches and implements updates such as the recent algorithm of consent called Ouroboros.
- Article on Emurgo: the last entity that participates in the creation of Cardano is Emurgo. This company focuses on the support, incubation, and development of the business initiatives of its partners. Emurgo, based in Japan, is responsible for developing the business around Cardano and is driving its adoption and its ecosystem through commercial initiatives.
Cardano cryptocurrency ecosystem is based on IOHK (today IOG), Emurgo and Cardano Foundation. Thanks to these entities, Cardano will fully develop as a third-generation blockchain, overcoming the critical issues concerning scalability and decentralization. The entire project, as known, is based on a rigorous scientific approach, following a path that requires compliance with already well-defined milestones.
Let’s see, more specifically, the role these companies play in making Cardano a mature and fully operational cryptocurrency so that the community can make use of it.
Companies that make up the Cardano cryptocurrency ecosystem
Since its genesis, dating back to 2015, Cardano has attracted the curiosity and attention of many investors. Stakeholders were immediately convinced by the strong academic rigor underlying the entire project, the promise was clear from the beginning. To give strength to Cardano was the company founded by Charles Hoskinson, IOHK, or Input Output Hong Kong, a company that today has taken the name of IOG.
The platform’s development was delegated to a team of scientists, mathematicians, commercial and financial experts, with the primary purpose of being able to offer sustainability, scalability, and security to the entire project. ADA, in other words, the Cardano currency, can be used by users to carry out blockchain operations in very similar ways to what happens with Ethereum.
In an evolved form compared to the original project, Cardano was then divided into different operating units. IOG, which in the past as IOHK has also dealt with Ethereum Classic, manages the Cardano protocol, while the Cardano Foundation has been assigned to supervise the project. Finally, EMURGO is the company called to oversee and direct the commercial development of cryptocurrency.
Many wonder whether or not this structure will be able to maintain the necessary decentralization to ensure the necessary independence for the three players involved in the project. It must be remembered that during these stages, Cardano aimed to improve capabilities on several fronts, primarily through the Proof of Stake (PoS) consensus mechanism. It should also be noted that the adoption of Ouroboros has made it possible to lower energy consumption and raise safety standards significantly.
Over time, the Cardano blockchain will seek to introduce new scalable smart contract capabilities. By doing so, it could have all the requirements to be considered a revolutionary project. Due to its scientific approach, development remains slow and not entirely predictable, even in terms of the independence of the companies that make up the ecosystem.
The future of Cardano seems to be entrusted mainly to the non-profit foundation, which bears the arduous task of overseeing the long-term development of the entire ecosystem. The Foundation will also be called to address key issues concerning the blockchain, such as regulation, interoperability, and stability of cryptocurrencies.
Meanwhile, EMURGO represents the channel for investments and will allow momentum to through the ecosystem. For this reason, it will undertake various commercial initiatives and be the protagonist of large-scale sessions.
Cardano cryptocurrency ecosystem: other considerations
In general, it is possible to believe that the Cardano cryptocurrency ecosystem rests on a fairly complex structure, very similar to what characterizes the democratic system of the United States. As explained, there are three main entities: the Cardano Foundation, EMURGO, and the former IOHK. Over time, however, this governance will tend to become more and more complex, given that the membership of additional organizations is expected.
In any case, the intent is to maintain the independence of the Foundation from the IOG. Moreover, Charles Hoskinson affirmed the need to keep the entity that protects the protocol separate from the rest of the companies that make up the Cardano cryptocurrency ecosystem.
The Foundation’s primary mission is very delicate and must be carried out without interference, despite the continuous and inevitable relations with the IOG development company. In this regard, it is recalled that in 2018 Hoskinson, with the support of the CEO of EMURGO, Ken Kodama, had requested the definitive resignation of Michael Parsons, president of the Foundation. After the unpleasant episode, it seems that relations have healed without any kind of repercussions.
IOG currently has proven to be a company that works independently and, although it is mainly concentrated with Cardano, it also deals with other projects, such as those concerning Ethereum Classic. EMURGO, initially born as an investment company, over time has turned into a wide-ranging tech company.
In any case, the involvement of the community remains a key element for Cardano’s success. Only with the active participation of users, also stimulated by the rewards system, will it be possible to implement the long-awaited decentralization of the blockchain.
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