Cardano (ADA) | Complete and in-depth review | The unique characteristics of Cardano

Cardano (ADA) | Complete and in-depth review | The unique characteristics of Cardano

By NassiroV | CryptoPlanet360 | 7 Jun 2020


New Cardano announcement launches ADA price by 60% | Invezz

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Separation of payment and functions of decentralized applications (dApps)

To avoid having to connect funds and decentralized applications, Cardano separates payment and dApps into two separate layers, unlike Ethereum.
The idea is that a smart-contract distributing pay to employees of a company every month, for example, will never be able to know the amount of pay each of these employees.

Cardano will use a new protocol developed in research involving proof of work: sidechains KMZ. This will allow the payment layer and the development layer to communicate while limiting their fields of action. These sidechains could actually be used to communicate with any other blockchain and provide evidence that would allow the exchange of value with these other blockchains.

These sidechains increase security by monitoring how smart-contracts can interact with the payment layer and enable interoperability with other blockchains.

Proof of secure stake

Ouroboros technology is presented as unique. Indeed, Cardano claims that their proof of stake (PoS) algorithm is the only one that is secure (because peer reviewed, i.e. verified by researchers, scientists ...).

Currently, proof of work (PoW) is strongly criticized:

  • Massive energy consumption
  • Centralized
  • Increase in transaction costs
  • Network congestion

Proof of stake helps reduce this energy consumption. But there are risks that proof of stake is less secure than proof of work. One reason is that it would be easier for an attacker to make a double spend attack on the proof of stake.

Social aspect

Decentralized Trust Fund will be set up, this aspect is similar to that of the Dash cryptocurrency.
Project members need money to continue developing the protocol. Thus, Cardano users will have to pay user fees.

Cardano do not see investors or sponsors as solutions because they could try to turn the project in their directions. For their part, the ICOs provide money only temporarily ...

Cardano will create a decentralized bank account. This will help control currency inflation but also allow projects to be carried out.
Indeed, there will be a way to propose and vote for projects. Winning projects will be funded.

Deadalus is the name of the wallet where you will need to store your Cardano tokens (ADA). It will be compatible with many cryptocurrencies, it is possible to build decentralized applications. This wallet is open-source.

Regulation

Cardano plans to use smart contracts to enforce regulations. This will allow businesses to use Cardano technology to more easily access the blockchain. For example a Casino dApp, the KYC (Know Your Customer) which corresponds to your identity document could be verified by smart-contract linked to the file of persons prohibited from playing.

Identity validation (via electronic objects: electronic card, smartphone ...) which will, on the same principle as Neo, associate a real identity with a property on the blockchain.
Thus, if a minor wishes to buy alcohol through the Cardano blockchain, this would be refused because he/she would not be of the required age.


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NassiroV
NassiroV

Hi, and welcome to my blogs :)! ​I’m Nassir, a thirty-something guy who loves to travel and write, especially about Crypto and Blockchain. I have been blogging and trading cryptocurrencies for a while. I hope that you find my articles beneficial to you.


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