Cardano it is the first one scientific blockchain project and it is considered as a blockchain of third generation thanks to offer scalability and security under a layered design that gives flexibility, ease of maintenance and allows upgrades through soft forks.
Its scientific approach and peer-reviewed academic research offer a unique cryptographic development being capable of generating a large volume of financial transactions with a security guaranteed by cryptography. Not forgetting an innovative development in smart contracts and decentralized applications or DApps like Ethereum.
What specifically does the name of scientific blockchain refer to?
First, it is because its development starts from a scientific philosophy and created by a global team comprised of academics and engineers from the blockchain community.
Second because its technology is secure, flexible and scalable to support millions of users around the world.
Its main virtue is the possibility of balancing the needs of users and regulators. This will allow for greater financial inclusion, as it provides open access to any financial service.
Why is it a third generation blockchain?
To get into context, we could say that Bitcoin is the first and Ethereum the secondgeneration. Cardano pretends support the second generation to improve the platform and make smart contracts more robust and intelligent.
How does Cardano work?
The Cardano platform, like Ethereum uses the Proof of Stake or Proof of Stake as a consensus method, which we already talked about in a previous article. But the differentiation lies in the fact that it is structured in two layers to make smart contracts more flexible, giving developers the possibility to adapt their own design, privacy and execution mode:
- CSL: It acts as the Ledger of the balance sheet. It is born from Ouroboros and uses a PoS consent algorithm to generate new blocks and confirm any transaction
This first layer has a number of characteristics:
- Two sets of scripting languages
- A set to move the value
- A set to improve protection against overlap
- Sidechains to link to other Ledgers
- Different types of signature including quantum signatures
- Active multiples issued by the user himself
- Scalability so that system capabilities increase as the number of users grows
The next layer:
- CCL: They contain all the information about what happens with the transactions carried out on the platform. Thanks to this layer, developers can create different rules with which they can evaluate transactions
The Cardano team is developing a new programming language to develop Smart Contracts in the CCL, the Plutus. It should be noted that the platform also supports the language Solidity employed in Ethereum. To support developers, Cardano will include a referenced library of Plutus code, so that it can be used in dApps.
What is the KMZ Sidechains?
It is a protocol that allows funds to be moved safely from the CSL to any external CCL or blockchain that uses the same protocol. An example of this:
- Ledgers that meet a number of requirements will be able to interact with the CSL without having to share private data through the KMZ Sidechains
How does Cardano work?
Cardano employs a universal programming language called Haskel and it is widely accepted to guarantee investment. This helps to write more accurate, fast, secure, and reliable code.
One of the weaknesses of blockchains in emerging markets is dealing with regulations, identification, KYC, financial history, among others. With Cardano, in addition to the aforementioned layers, you can take advantage of the necessary regulatory compliance and the low cost of KYC (Knows your customer) and reach millions of unbanked people.
As we mentioned before, it uses the PoS consensus mechanism that in Cardano is known as Ouroboros, it has greater energy efficiency and allows faster transactions, offering ADA users new governance schemes.
What is Cardano Proof of Security?
To provide security, Cardano’s Ouroboros employs a mathematical security test. This test is based on the persistence and vitality properties of a robust Transaction Ledger.
Persistence requires all nodes to disagree when a transaction stabilizes, vitality requires all honest transactions to stabilize.
So that we understand each other, users obtain the same level of security as when using Bitcoin, but they obtain greater speed and operational capacity, thanks to PoS.
Javier Molina: “Cardano incorporates a series of factors that seek to provide the blockchain with greater scalability and interoperability”
We consulted our expert and professor of the cryptocurrency investment course, Javier Molina, about some differential aspects of Cardano.
-Why was Cardano developed with a view to supporting Ethereum and not developing its own blockchain?
Cardano incorporates a series of factors that seek to provide the blockchain with greater scalability and interoperability. The user base is, today, somewhat different and essentially seeks to be the basis for the different smart contracts but always thinking about that interoperability.
-Will Cardano gain ground as cryptocurrency regulations are reliably enforced by providing regulatory aspects in its ecosystem?
The regulation we are seeing is getting stronger and stronger and it will affect CeFi in the first instance and we will see how it does it with DeFi. Those protocols that grow together with the regulation will have it easier in principle but with the risk of affecting their future development.
-What projects could we highlight that have been carried out on the Cardano blockchain? Are there any in development in Spain?
In this part of the ADA website we can see current projects and developments.
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