This was reported by Cardano’s leadership on their official website with an elaboration that the trial concerned the partnership concluded between Cardano Foundation and Z/Yen Group Limited in July 2017. Later the startup was forced to annul and end the partnership for a variety of reasons. Cardano isn’t opening up about the dispute details, however, it fully refutes their ex-partner’s claims, adding that it will not disclose such information until the conclusion of the trial.
It is known that at the very end of 2017 Cardano Foundation became partners with Z/Yen Group to conduct collective research in apps regarding blockchain to expand the scope of Cardano and the ADA cryptocurrency. In addition to that, the companies were working on the implementation of the Distributed Futures program, designed to study blockchain, digital currencies and the technology of artificial intelligence. The program was led by the co-founder of the company Michael Mainelli, who later became head of the department of research at the Cardano Foundation.
Mainelli believed that based on the results of the study on implementing different tools like smart registries, these tools could be implemented into different areas of activity, given that investors, government officials and regulators learn to use them. The assumption can be made that during the research Cardano and Y/Zen disagreed, and, as a result, a dispute arose which could only be settled in court. In January Cardano entered a partnership agreement with the PRIViLEDGE consortium for collective research and solution of the problems connected with using the technology of the distributed registry. Aside from that, last week the founder of Cardano Charles Hoskinson reported the conclusion of the research in the Hydra technology of sharding, which, in theory, can increase the capacity of the network to 1 million transactions per second.
