On 31st August, Charlie Lee, the mastermind behind the creation of the 7th largest cryptocurrency by market cap, Litecoin [LTC] tweeted a video by Jackson Palmer explaining Cardano to the community. In his second tweet, Charlie conveyed that the algorithm known as follow-the-satoshi, which was invented by him in 2012 is used by Cardano [ADA] and Tezos. He wrote:
“After watching this, I realized that Cardano’s slot leader selection algorithm uses the follow-the-satoshi algorithm that I invented in 2012! https://bitcointalk.org/index.php?topic=102355.0 … @IOHK_Charles @IMOK_Charles // Oh, Tezos also. Who else uses the follow-the-satoshi/follow-the-coin algo?”
Jackson Palmer is the creator of Dogecoin, which is at 24th position on the cryptocurrency rankings on CoinMarketCap. In his video, he has revealed several factors associated with Cardano, such as the ICO that was conducted for the coin from 2015 to 2017, the goals expected to be achieved, among others.
Between 2015 and 2017, to raise funds for code and other developments, Cardano conducted an Initial Coin Offering [ICO]. According to Palmer, a majority of the buyers were from Asia where the buyers purchased redeemable vouchers that could be later redeemed for the ADA token on the Cardano blockchain.
Regarding why the Cardano network needs a native token and what its utility is, Palmer stated three points. Firstly, the most obvious utility of a cryptocurrency, Cardano is a medium of exchange, trading like a currency. Secondly, the proof-of-stake [PoS] model of Cardano that includes consensus relies upon the native token for holding stakes and voting. Lastly, similar to Ethereum, the ADA token is used like GAS to pay for the ability to run a smart contract on the network.
In his video, the blockchain expert also spoke about Cardano constructing the third generation of the blockchain technology. He added that Bitcoin is referred to be the first generation, with its basic proof-of-work [PoW] based system for maintaining a ledger whereas Ethereum is the second generation of blockchain that introduced smart contracts on top of the existing layer. Furthermore, the third generation is defined by combining all the features and adding scalability to it, as it has been a long-lasting problem for the Ethereum blockchain.