Cardano – Offline cryptocurrency to be used soon?

Cardano works on a microchip that allows you to use cryptocurrencies without internet access

Cardano is working on a crypto-native microchip, the purpose of which is to allow the use of a crypt without Internet access. It could bring a “fiat user experience” to millions of people worldwide using cryptocurrencies.

Offline thanks to the microchip develop from Cardano

Cardano founder Charles Hoskinson said the IOHK is working on a crypto-native microchip in his blockchain lab at the University of Wyoming.

The technology company behind the cryptocurrency Cardano (ADA) announced a partnership with the University of Wyoming and a donation for research in February this year. Now they could work together to bring breakthrough technology. Use cases of a given microchip can provide a cryptocurrency experience that is similar to a cash payment.

How it came about

It started when IOHK while examining the use of cryptocurrency in the supply chain, realized that there were no chips on the market that could meet its requirements. It states:

We’ve noticed that now, unfortunately, there is no market standard for trusted open-source hardware that is strong enough to be used with a cryptocurrency, but also to be used in the supply chain.”

In this context, Hoskinson stressed that all work on the microchip would remain open-source. As a result, not only Cardano itself, but also the entire crypto-community will benefit from this work.


For practical use cases, for example, the microchip from Cardano could be used to monitor the supply chain and determine the authenticity of Louis Vuitton handbags. Or maybe to control access to a limited edition Lamborghini, says Hoskinson. He adds:

The only people allowed to buy these [limited edition models] are verified Lamborghini customers. […] So what happens is that there is a lottery system for people who are verified customers, and if they win, they have the right to buy it. However, they almost always sell this right to someone else and make money. So it’s like the free money Lamborghini gives to its customers.”

It’s not just a Lambo

However, they do not have to be just unnecessarily expensive items. Hoskinson states that Bitcoin was created as digital cash – cash online.

But what if you want to go in the opposite direction? What if you wanted to switch from a native cryptocurrency to something with a cache, such as a user experience? It’s challenging without a hardware component.”

Cardano relies heavily on the developing world. However, according to IOHK, it is real for them that, for example, only 2% of six million farmers own smartphones in Africa. So most are offline.

That is the problem. We know that some cryptocurrencies have a lot of promise from helping people who are so-called “unbanked”. The people of Cardano have pointed out that this can be impossible if many do not own a mobile phone with the Internet, as we thought so far. It would be difficult for them to use crypto if they do not have internet access.

Cardano’s founder says:

Well, you do this by creating a hierarchy where these two percentages essentially become something like micro-banks, and then they can manage the issuance of these tokens to people, and then their local phones or infrastructure can verify [offline transactions collectively].”

The chip could be inserted into a phone case and would not require the Internet to transfer cryptographic keys.

So what should you take from it?

The technology company responsible for developing Cardano has come up with something new. They work in the laboratories of the University of Wyoming on a crypto-native microchip. This could make it impossible – to perform crypto transactions even without Internet access. The results of the development will be available for the entire crypto community.