Cardano has a project related to a native cryptocurrency microchip. It would enable a cryptocurrency transition without internet access. This could deliver a fiat currency-like experience to people around the world. Charles Hoskinson, who is the CEO of Cardano, said that the cryptocurrency native microchip that IOHK is developing at its blockchain lab at the University of Wyoming could break ground on new functionality. That functionality would include a cash-like cryptocurrency experience.
Development on the microchip started when IOHK began taking a look at supply chain cases. The firm realized there were no chips on the market that met its requirements for an ability to store cryptographic keys, low production cost and the ability to embed. The CEO added they wanted an open-source and trusted hardware with a lot of power to use in the supply chain. He also explained that the work on the microchip will stay as open source and will benefit the entire cryptocurrency world.
The microchip could be used for authenticating and managing luxury goods, such as a Louis Vuitton purse. It could also be used for buying limited-edition goods. The chip could verify customer loyalty for lottery systems. On the other hand, it could also be used for low-cost consumer goods. Some of the applications include agriculture.
The CEO also added that the point of Bitcoin was to convert cash into something like cash that is digital. However, there is not anything yet for going in the other direction. In Cardano's opinion, the developing world is a key market for the success of cryptocurrencies in the future. As one example, only 2 percent of Africa's farmers own a smartphone. The project could involve the use of cryptographic keys that allow two phones with no internet connection to just be tapped together in order to share the value of the currency. It is also a scalable solution. Nothing requires blockchain.
The trade war between the United States and China poses a concern for the project. Many governments consider cryptography a terrorist activity. There are a lot of controls around it. This will be a long-term project.