- Cardano's Charles Hoskinson recently spoke of his company's new product — a new crypto-focused chip.
- The chip could have countless new use cases, among which is providing the cash experience to its user.
- As such, the chip like this could be of major importance for the long-term success of the crypto industry.
One of the biggest problems for people who know of crypto but avoid using it is the fact that it is too foreign to them to not be able to hold the money in their hands.
However, according to Cardano (ADA) founder, Charles Hoskinson, this might not be the case for much longer.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Cardano’s new project could revolutionize the use of crypto
Recently, Hoskinson revealed that his company is working on a new project — a crypto-native microchip. The chip is being developed in IOHK’s blockchain lab at the University of Wyoming.
If the project proves successful, it could mean some groundbreaking development for the crypto industry, such as bringing cash-like experience for digital coins.
IOHK came to the idea while exploring supply chain use cases. It realized that there are no existing chips that could satisfy some requirements that the company believes are in demand. This includes things like the ability to store cryptographic keys, embeddability, and being cheap to make.
Hoskinson then said that all the company’s work on the chip will be completely open-source. As such, the entire crypto community can benefit from it, and not just Cardano.
But, more to the point, the chip can have numerous use cases, such as management of luxury goods, or their authentication. It can be used to prove the authenticity of branded handbags, or to provide access to limited-edition sportscar purchases.
Delivering the cash experience
Of course, not all use cases would involve expensive goods. They can also include developing the world into a better version of it, or agriculture. However, one of the most revolutionary uses would be transforming digital currencies into physical ones.
“You know, the whole point of Bitcoin was to go from cash to something that’s like cash online. But what if you want to go in the opposite direction? What if you wanted to go from a native cryptocurrency to something that has a cache like user experience? It’s very difficult to do without a hardware component,” said Hoskinson.
Cardano seems to believe that this is the key to the future success of the crypto market.
For example, crypto supporters often talk about banking the unbanked, such as the African population, which doesn’t have access to the global economy. However, Cardano found that 98% of Africa’s six million farmers do not have a smartphone.
As such, they are neither banked nor digital, and they have no use of cryptos if they don’t come in a physical form.
Of course, there is a matter of replicating crypto and moving it from one device to another. Hoskinson said that chips could simply work by transferring private keys from one chip to another, and they would also contain proof of erasure, so that the key only exists on a single device.
As such, they would need no internet to transfer cryptographic keys.