Cardano, the coin who wants to solve the problems of cryptos!

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Avatar for Treater98
3 years ago

Cardano is the world's first peer-reviewed blockchain. This means that the Cardano team made sure that experts from all around the world, check their papers and approve them. This is why the cardano asset took more than 2 years to be created.

The cardano blockchain is made up of 2 layers:
➖Cardano Settlement Layer, where the transactions of ADA occurs
➖The Control Layer, which will be used for the smart contracts.

Cardano aims to solve the problems of cryptocurrencies:
➖The system of PoW is known for being slow and inefficient, both for wasting computer power and electricity. Cardano, instead, adpots the PoS. The network elects a few nodes to mine the blocks.
Cardano (actually its algorithm) divided time into epochs, and then epochs into slots. To each slot (which represents a fixed period of time) is assigned a slot leader which has the duty to verify the transactions and write them in the block in the specific time frame.
If a slot leader fails to verify all the transactions in time, it is no more allowed to produce blocks and has to wait to be elected again from the network.
This whole method (which is called Ouroboros) is much better than PoW because it allows to split epochs in more slots and lets run multiple epochs in parallel to face the increasing number of transactions.
➖With the old sistem of PoW, each node in the network receives a copy of the transacion that needs to be verified. Thousands of transactions per second * thousands of miners make the PoW unsustainable on the bandwidth side.
Cardano instead splits the network into subnetworks, reducing the amount of bandwith needed. This splitting tecnique called RINA. It allows the different networks to communicate with each other if needed but letting them still to be split and operating individually.
➖The storage of the blockchain is also a problem of scalability. For now the problem isn't still tackled, but the cardano team will use methods of Partitioning , Compression and Pruning to reduce the "weight" of the blockchain.

➖The cardano team aims to make a blockchain that "talks" to other blockchains. This would result in moving assets across multiple chains.
➖Cardano wants even to be trusted by banks, allowing users to "name" their transactions, setting a sender/receiver name plus a reason for the movement of coins. This still remains a choice of the users whether to put this information or not.

Many cryptocurrencies born recently launched a ICO (initial coin offer) to obtain a capital to develope the asset. Have you ever wondered what happens if those money isn't enough for the whole existence of the asset?
Cardano team did and they came to a solution! Each transaction will pay a "tribute" to a treasury who will store a capital for the developers.
The treasury itself is basically a smart contract which will hold the coins that will release part of the funds to improve the cardano protocol.
Developers will submit a proposal of improvement to the community. The community will vote for the best of the ideas proposed and after some time the treasury will give enough money to develope the improvement.

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Avatar for Treater98
3 years ago