Cardano is a Blockchain network. It is open source and decentralized. It has slower growth compared to others crypto. But it lays the foundations that can lead to great growth and more Dapps and DeFi projects moving to Cardano in the later future. So, in this article we want to explain Cardano and look at its origin, features and compare it with Ethereum.
Cardano is a Blockchain network similar Ethereum, Bitcoin, or Saltworks. He founded it Charles Hoskinson 2015. He was a co-founder of Ethereum and later a co-founder IOHK (Input Output Hong Kong). The IOHK helped create Cardan. It is Proof of Stake blockchain. This helps save electricity, but also improves the speed of transactions. It can process 250 transactions per second but can be further improved to process more.
Cardano was named after the Italian mathematician Gerolamo Cardano. Its cryptocurrency IT’S THERE and basement Fićfirić are named after Ada Lovelace. This helps save electricity, but also improves the speed of transactions. It can process 250 transactions per second but can be further improved to process more. It is 7. the largest cryptocurrency and has a market capitalization of $ 37 billion.
Cardano is deflationary. This means that there are only a limited number of coins 45 billion ADA coins that will ever be created and no more than that. This means that over time, as demand grows, the value of Cardana will grow. It focuses on 3 main goals:
- Scalability: To scale the blockchain as the user base grows. Increase the speed of the transaction over time.
- interoperability: Act like an internet blockchain. Help transfer assets between different blockchains.
- Sustainability: Be self-sustaining and act independently.
To achieve these goals, Cardano uses a variety of methods and technologies. These features help shape and are the reasons why Cardano has such great community support. Let’s take a look at some of these features and how they achieve the 3 main goals.
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In the Proof of Stake blockchain, one random person is selected to confirm the transaction. Ouroborus is a proof of stake protocol. In this protocol, the time is divided between the creation of data blocks Epoch. Epochs have more places. People participate in these slots. Some were randomly selected to be place leaders. Slot managers are now in charge of mining or checking transactions in that slot. This whole process is called Ouroborus
One block is added per Epoch and must be completed before the next Epoch. If the slot manager fails to confirm the transaction before the next Epoch, then someone else is selected. The advantage of this protocol is that multiple parallel epochs can be run at the same time and that the number of slots in the epoch can be increased to increase scalability.
KMZ Side Chain Protocol
One of Cardan’s goals is interoperability between different Blockchains. There is currently no way for different blockchains to communicate. Or even transferring property without using a crypto exchange. Cardano wants to change that and become an Internet Blockchain. They use protocols like KMZ Sidechain to bridge and allow a seamless transfer of funds between Cardan and the other Blockchain. Cardano is working on multiple solutions to improve interoperability using bridges.
The treasury is a smart contract. It stores the funds collected from the transaction fees that apply to each Cardano transaction. The funds are safe and no one can use them. These funds are then used to pay developers who want to improve the blockchain. The developer can suggest what to change or improve and how much he wants in return. The community votes on the proposal and if it is selected, the treasury lays down the requested funds to the developers crypto wallet.
This system helps to create a sustainable structure that gives incentives to developers who want to help develop the blockchain, while giving stakeholders and miners a reason to participate.
Ethereum VS Cardano
Charles Hoskinson created Cardano after he left Ethereium. He built it with the idea of improving it through Ethereum and fixing its limitations. He wanted to create a more acceptable blockchain network and overcome the obstacles that Ethereium faced.
Limited stock of coins
Ethereium has no limitations on the Ether coin offering. This means that more Ether coins are created each year and there will be an unlimited supply of Ethereum coins.
Cardano, on the other hand, has a limited stockpile of 45 billion coins. Only 45 billion ADA coins will be produced. This makes Cardano a deflationary coin. This means that over time as blockchain users consume more coins and coin supply declines, the value of the coin will increase.
Cheaper transaction fees
Ethereum is notorious for its high value gas charges. It is a fee for confirming and processing transactions. High gas prices are the result of evidence of the operation of the system used by Ethereum to validate transactions. It is slower and can only process 15-30 transactions per second. So you have to pay a high fee if you want your transaction to be confirmed quickly.
Cardano, on the other hand, uses the Proof of Stake system and can check multiple transactions in parallel. This means that it not only saves a lot of electricity but also helps in faster processing speeds. Less resources and energy are spent on Cardan mining, which is why the transaction fee is significantly low on Cardan.
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Cardano has active development plans for improvement and growth. There is likely to be more growth in the near future and an increase in value over time. It is working on interoperability with the Ethereum blockchain to help more Dapp projects switch and work with Cardan. We hope we have helped you explain Cardano, it works and all the features it offers.
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