Cardano, a decentralized public cryptocurrency and blockchain project, aims to provide a more secure platform for the execution and development of smart contracts and other decentralized applications (DApps). Charles Hoskinson (co-founder of Ethereum) is the leader of this blockchain development company Input Output Hong Kong.
Cardano, like Ethereum, is a smart contract platform which allows developers to create and deploy decentralized applications. Cardano is different than other smart contract platforms because it uses a unique proof of stake (PoS), consensus algorithm called Ouroboros. This algorithm is more secure and energy-efficient than the proofs-of-work consensus algorithms used by Bitcoin and Ethereum.
Cardano’s main goal is to solve interoperability and scaling issues that plague other blockchain networks. Cardano’s modular architecture allows it to separate its core functionality into two layers, the Cardano Settlement Layer(CSL) or the Cardano Computation Layer(CCL). The CSL handles transactions and manages the ledger. The CCL runs smart contracts and other decentralized applications. This separation of interests allows for greater flexibility and scalability as the CCL can be upgraded or modified without affecting CSL.
Cardano also wants to improve the governance and sustainability other blockchain networks by implementing an official process for protocol upgrades, and incorporating a Treasury system to finance the development of the network. Stakeholders vote on protocol upgrades and the treasury allows for a portion to be used for future development and improvement.
Cardano is different from other blockchain networks in several key areas. It uses a proof of-stake consensus algorithm, rather than proof-of work, as previously mentioned. Instead of solving complicated mathematical problems to validate transactions or secure the network, Cardano network validators are chosen based on how much ADA they have and whether they are willing to “stake”, as collateral. This makes validation easier and more efficient. It also allows for a decentralized network that isn’t restricted to people with specific hardware, such as Bitcoin’s ASICs.
Cardano places a strong emphasis upon security and formal verification. Cardano has implemented security measures to guard against vulnerabilities and attacks. The Ouroboros proof of stake algorithm has been thoroughly studied and tested. Cardano was also the first blockchain to use mathematically verified smart contracts.
Cardano’s focus is on interoperability, which allows it to collaborate with other blockchain networks. CCL allows developers to integrate multiple programming languages. This makes it easier to create cross-chain applications and makes it possible for developers to use the platform.
Cardano, a decentralized public cryptocurrency and blockchain project, aims to address interoperability and sustainability issues in smart contracts and decentralized apps. Cardano’s unique proof-of–stake consensus algorithm, modular architecture and emphasis on security make it an attractive choice for developers who want to create secure and reliable decentralized applications.