The CUDOS token is an ERC-20 token native to the Ethereum blockchain. The CUDOS token in conjunction with our network allows all participants to stake and earn rewards and discounts. As well as all of that the CUDOS token also has uses as a qualification and discount vehicle. The CUDOS Token is a key component for our network, however, the fact that it is based on Ethereum’s blockchain could restrict it to the limitations that Ethereum is currently struggling with.
As we’ve mentioned in a previous blog post, Ethereum has had issues with scalability and transaction speeds, Ironically Ethereum’s popularity and the popularity of the dapps on its network have been too much for it to handle. The example that is always cited when discussing Ethereum’s scalability issues made its way into mainstream news, Crypto Kitties a popular online game built on top of the Ethereum network. The issue of scalability became a major problem when the popularity of the game backfired and caused the entire Ethereum blockchain to become stagnant due to an overwhelming amount of traffic that Ethereum was clearly not ready to handle. Ethereum has recently launched Ethereum 2.0, a series of upgrades to the Ethereum blockchain that officially began rolling out on Dec. 1, 2020.
Even though Ethereum developers are working hard to tackle the scalability issues they’ve been facing, it may be a while until the upgrades are running smoothly, this is part of the reason why our CUDOS token will not be exclusive to the Ethereum Blockchain and will also be supported by the much faster Algorand Blockchain as an Algorand Standard Asset (ASA).
An Algorand Standard Asset, ASA for short, is a layer 1 mechanism that allows users to host any token on the Algorand blockchain, in turn benefiting from the same level of security and ease of use as Algorand’s native Algo token.
Jeremy Allaire, CEO and Chairman of Circle was asked what the difference is between running USDC on Ethereum and running it on Algorand and how it impacts the end-user. Allaire responded, “Algorand brings over 1,000 transactions per second and transaction fees of 1/20th of a cent to the USDC ecosystem, and soon to be released innovations from Algorand offer the potential of scaling throughput by 8–10x on Layer 1, accompanied by new secure smart contracts that complement standard tokens such as USDC.” With all this in mind, it’s clear to us that the smart move would be not to have all our eggs in one basket and although we have a lot of faith in the Ethereum network the benefits that the Algorand blockchain brings to the table are undeniable.
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