Cardano Explained and Ethereum Comparison – Gadgets to Use

Cardano is a Blockchain network. It is open source and decentralized. It has had slower growth compared to other cryptos. But lays the groundwork that can lead to massive growth and more Dapps and DeFi projects to Cardano in the later future. In this article, we want to explain Cardano and take a look at its origin and characteristics and compare it with Ethereum.

explain cardano

Cardano is a Blockchain network similar to Ethereum, Bitcoin or Solana. It was founded in 2015 by Charles Hoskinson. He was the co-founder of Ethereum and later also co-founder of IOHK (Input Output Hong Kong). IOHK helped create the Cardano. It is a Proof of Stake blockchain. This helps to save electricity, but also improves transaction speed. It can process 250 transactions per second, but can be further improved to process more.

Cardano is named after an Italian mathematician Gerolamo Cardano. The cryptocurrency ADA and sub-currency Lovelace are named after Ada Lovelace. This helps to save electricity, but also improves transaction speed. It can process 250 transactions per second, but can be further improved to process more. It is the 7th largest cryptocurrency and has a market cap of $37 billion.

Cardano is deflationary. It means it only has a limited coin supply of 45 billion ADA coins to ever be made and no more than that. This means that over time, as demand increases, Cardano’s value will increase. It focuses on 3 main goals:

  • Scalability: To scale the blockchain as the user base grows. Increase transaction speed over time.
  • Interoperability: Acting as the internet of blockchains. Help transfer assets between different blockchains.
  • Sustainability: Being self-sufficient and operating independently.

To achieve these goals, Cardano uses different methods and technologies. These features help shape it and are the reasons Cardano has such massive community support. Let’s take a look at some of those features and how they accomplish the 3 main goals.

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Features of CardanoOuroborus protocol

In a Proof of Stake blockchain, one random person is selected to validate the transaction. Ouroborus is a proof-of-stake protocol. In this protocol, the time between the creation of data blocks is divided into epochs. Epochs have multiple slots. People participate in these slots. Some are randomly chosen as slot leaders. The slot leaders are now responsible for mining or validating trades 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 closing leader does not validate the trade for the next era, someone else is selected. The advantage of this protocol is that multiple parallel epochs can be run simultaneously and the number of slots in the epoch can be increased to increase scalability.

KMZ side chain protocol

One of Cardano’s goals is interoperability between different Blockchains. Currently, there is no way for different blockchains to communicate. Or even transfer assets without using a crypto exchange. Cardano wants to change that and become an internet of Blockchains. They use protocols like KMZ Sidechain to enable a seamless transfer of assets between Cardano and another Blockchain. Cardano is working on more solutions to improve interoperability with bridges.

Treasury System

Treasury is a smart contract. It stores money collected from the transaction fees applied to each Cardano transaction. The money is safe and cannot be used by anyone. This money is then used to pay the developers who want to improve the blockchain. The developer can suggest what he is going to change or improve and how much he wants in return. The community votes on the proposal, and if it is selected, the Treasury will deposit the requested funds into the developers’ crypto wallet.

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