Cardano and competition in the ecosystem
My intention in this article is to provide a different view of the crypto ecosystem.
There are numerous projects. We could talk at length about the different blockchains, and their platforms for use in programming DApps and smart contracts.
Nor will I make an exhaustive presentation of the technical features of Cardano, it would be too long to read. Towards the end, you will understand the sense of this note.
The Goguen era, about to begin in February 2021, is when Cardano will develop its true programming power.
Its interoperability with other tokens will be one of the key pieces, for example with the ERC20 converter, many tokens running on Ethereum will move to Cardano because of its low cost fee.
DApps (decentralised applications) will become the standard, because they will not have a single point of failure as they are distributed, their communication latency will be minimal due to the number of nodes connecting the world and distributing information. They will not be censurable in terms of the information they carry, nor will users be deleted for their opinions as is the case today in centralised social networks.
Smart contracts for use in DeFi (decentralised finance) will be the core business of the networks, because of their dynamics and person-to-person interaction without the need for intermediaries. In Cardano, they will be implemented with its programming language Plutus, with a simplified version with Marlowe for less complex contracts, thus allowing the participation of actors with less programming knowledge.
Cardano’s scalability promises thousands of times the speed and capacity of data processing when Hydra is implemented. It is a second layer solution above where PoS consensus is used. Each pool can create a new Hydra head. Each Hydra head can process around 1,000 transactions per second (TPS) and so with 1,000 pools, in theory it can scale up to 1 million TPS. Visa’s network processes 2,000 TPS.
Digital identity is another area that Cardano is taking seriously, with the Atala Prism project, a decentralised identity solution that allows people to own their personal data and interact with organisations seamlessly, privately and securely.
Cardano was designed on the basis of an incentive policy, therefore, flexibility in delegation is a property that motivates members to choose the best option for their delegation, and to change it without restrictions, as the funds are always available to their holders, who keep the private keys, being able to change the pool or spend them.
There is no minimum amount to delegate to a pool (only a returnable deposit of 2 Adas, plus a transaction fee of approximately 0.20 Adas).
The above differentiates it from other PoS consensus blockchains, which require a minimum amount to participate in the consensus and also tie up the use of delegated funds.
Delegation is indirectly participating in the consensus by giving up the chosen pool.
Governance is a major issue for Cardano, which is way ahead of other blockchains in its design with its novel treasury system. Its implementation, scheduled for the Voltaire era, is already underway initially with the community-voted Catalyst projects funded by FUND2 and currently FUND3.
When Voltaire is fully implemented, Cardano will be fully sustainable and autonomous, and it will be the community with its decentralised participation system that will guide the necessary reforms in the dynamics of the cryptoeconomy.
The crypto-economy is just beginning. It is an innovative technology that has found the time for its birth and evolution.
Each blockchain will adapt its platform to a market segment, satisfying a growing demand.
There will be room for coexistence between the different offers, and of course proposals that are not accepted by the market will not be successful, that is what the economy is all about, including cryptoeconomics.
Let’s not worry about competition, Cardano is ready, well designed to grow globally.
Cardano will be a paradigm shift and it depends on the community to set an example in the ecosystem by developing good practices, focusing on the philosophy of decentralisation and spreading its technology.
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