Introduction To Cardano
If you have ever dreamt about a cryptocurrency, which can be used to, make possible fast& direct transfers that are guaranteed to be secure through the use of cryptography. Then this guide is a must-read for you.
Let’s dive in.
Cardano is a third-generation proof-of-stake blockchain platform: the first to be founded on peer-reviewed research and developed through evidence-based methods. It combines pioneering technologies to provide unparalleled security and sustainability to decentralized applications, systems, and societies.
The Philosophy of Cardano
The Cardano team adheres to a set of principles and philosophies. They did not set out with a proper roadmap or a white paper. Rather they focused on embracing a collection of design principles, engineering the best practices, and avenues for exploration.”
We share a few principles below, you can look up the rest on the Cardano website.
- Separation of accounting and computation into different layers.
- Implementation of core components in highly modular functional code
- Explore the social elements of commerce
- Find a healthy middle-ground for regulators to interact with commerce without compromising some core principles inherited from Bitcoin.
How does Cardano work?
The goal is to be the most environmentally sustainable blockchain platform. It uses a unique proof-of-stake consensus mechanism called Ouroboros. Unlike the energy-intensive proof-of-work system currently used by Bitcoin and Ethereum.
What is proof of work?
Decentralized cryptocurrency networks need to make sure that nobody spends the same money twice without a central authority like Visa or PayPal in the middle. To accomplish this they use a consensus mechanism. The original crypto consensus mechanism is called proof of work, first popularized by Bitcoin mining.
What is Proof of Stake?
Instead of using a network of miners racing to solve puzzles, the Proof of Stakes uses a network of investment participants called validators with their own ADA. Cardano Settlement Layer (CSL) and Cardano Computing Layer (CCL). The CSL contains the account and balance ledger (where the transaction is validated). Ouroboros consensus mechanism). At the CCL layer, all calculations for apps running on the blockchain are done through smart contract operations. The idea of splitting the blockchain into two layers allows the Cardano network to handle as many as 1 million transactions per second.
What is a Native Cardano Token?
On March 1, 2021, Cardano Blockchain introduced the ability to create. Native token. Like Ethereum tokens, which can contain stablecoins such as NFTs and USD coins, you can create native Cardano assets, distribute them on the blockchain and interact with smart contracts.
However, unlike Ethereum-based tokens, Cardano native tokens run on the same architecture as the ADA cryptocurrency itself. According to the non-profit Cardano Foundation, this will make Cardano native assets “first-class citizens” on the blockchain. Their native architecture can theoretically make these tokens more secure and reduce transaction-related charges.
Closing Nuggets.
In the second quarter of 2021, smart contract functionality is scheduled to arrive on the Cardano platform. Developers have also announced that the blockchain will become compatible with Ethereum-based smart contracts later in the year — potentially allowing it to run a wide range of existing apps and allowing developers to work on Cardano projects using the familiar Solidity programming language.
Cardano also plans to become completely decentralized through the implementation of community-driven governance and an automated treasury system to fund the future of the network.
