Updates From Charles Hoskinson – Cardano is on Track and First Testnet Snap Shot Has Been Taken

In the article we are going to go through a recent AMA uploaded by Charles Hoskinson, the CEO of IOHK. Specifically, we are going to look at some of the recent developments and the price movements.

Nothing should be considered investment or financial advice. Enjoy the ride.

Charles Hoskinson on Cardano Updates

Unfortunately, a lot of people do not understand what is happening with the upcoming update to the Cardano network. In short, the IOHK team has decided to split the update into two separate snap shots. Here is there gist of it.

On 11/12/2019 there was a snap shot which essentially means the test net is running off of the main chain from that specific moment in time. Currently, everything happening is on a sandbox network and optional if you do not want to participate. You will simply be missing out on a small amount of free tokens, but removing the hassle from dealing with the process.

Cardano Testnet

The testnet will be run on a separate sand box which is like an artificial network set up to let people join and participate in the development. The purpose of the sand box is to protect the main net from any bugs or issues that could occur during the implementation process. This allows issues to be resolved before the update goes live on the network.

During the sand box period, participants will be able to claim their ADA from validating their wallet credentials. Then they can earn ADA from staking during the testnet phase as well. After the sand box version of the test net closes, the participants will be distributed the rewards to their actual wallets.

Throughout this test net process the total supply of ADA will be conserved. This means that after the test net is closed, the rewards from the participants will be distributed and ADA will be deducted from the back end to keep the total supply consistent. Therefore, there will be no new ADA generated after everything is finalized from the test net period.

The overall goal of this process is to continue to push Cardano towards the roll out of the Shelly main net. Every development and update pushes the network closer and closer to finally being a fully functional and enterprise ready project.

What if the Cardano Testnet is Compromised

A common question addressed in the video is if the testnet gets compromised. In order to claim your ADA on the testnet and to receive rewards from participating, you will need to enter in your private keys. Well, if there is some fatal bug or issue with the testnet then technically your private keys could be at risk.

Charles has a solution for this, create a new wallet. Since the snap shot has already been taken, go ahead and move your real ADA to a different wallet, and then claim your ADA on the testnet with your old wallets keys. This a simple fix and probably a recommended action just to make sure nothing even has a chance of taking your ADA.

Cardano Price Movements

Besides the rapid development happening over at IOHK, Emurgo, and the Cardano foundation, the price of Cardano seems to be still lower than expected. Hovering consistently around $0.044 per token, this is only a cent above the ICO price two years ago.

Most investors surely would hope that their ADA holdings would be more than a cent higher than two years prior, but there is still plenty of hope. With staking right around the corner and the crypto market officially moving away from the bear market, there could be a new dawn rising.

Leading the way to this new promise land is the grandfather Bitcoin himself. Day after day entire countries are starting to advocate blockchain and crypto education. Sooner than later, the focus will shift to altcoins and the light will shine once more on the glorified altcoin market investors are waiting for. Only time will tell, but my intuition says patience will be the victor here.