- March 15, 2022
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
The Cardano ecosystem is one of the most versatile networks in crypto and blockchain. Moreover, its technology provides numerous benefits to both developers and users. Hundreds of projects are in development for the network, enhancing its overall appeal and value.
Why Cardano Gains Momentum
In the cryptocurrency and blockchain world, most people focus on Bitcoin and Ethereum. Those are the two best-performing assets from a price viewpoint, even if their technology leaves much to be desired. Cardano, since its proof-of-stake upgrade, has slowly risen the ranks. As a result, its market cap rose strongly, and overall developer interest improved significantly.
Today, hundreds of projects are in development on the Cardano network. More are likely to follow suit, as the ecosystem lends itself well to exploring many different use cases. Smart contract functionality unlocks numerous possibilities. More importantly, it checks the right boxes to ensure users feel safe and secure and even provides privacy – which both Bitcoin and Ethereum lack.
The Double-Layer Architecture
Nearly all public blockchains are one-dimensional solutions. That works well for a payment-oriented network, like Bitcoin, but can create tremendous blockchain bloat – and higher network fees – when one layer has to process all of the data. So instead, Cardano uses a two-layer solution that separates settlement from computational tasks.
The Cardano Settlement Layer – or CSL – performs regular network transactions in the ADA currency or any of the tokens created on Cardano. It is separate from the Cardano Computational layer (CCL), facilitating smart contract deployment and network governance.
Ensuring every layer is responsible for doing a specific job without unnecessary bells and whistles makes for a very efficient network that can scale better than most other blockchains on the market today.
A Sustainable Ecosystem
Rather than relying on mining – through proof-of-Work – Cardano uses network validation via staking (Proof-of-Stake). Unlike mining, staking does not require powerful hardware guzzling electricity. It makes Cardano green and environmentally friendly. Moreover, the network’s two-layer architecture further enhances the sustainable and eco-friendly nature of the ecosystem.
As global warming remains an ever-growing concern, blockchain networks need to adopt new solutions to do their part. Cardano’s switch to proof-of-stake sent a strong signal to the roader industry. In addition, sustainability and eco-friendliness are two significant advantages Cardano provides compared to nearly all other public blockchains on the market.
Privacy Features
When one thinks of blockchain, the lack of privacy remains a problem. A distributed and public ledger of transactions or smart contracts is powerful but not always ideal. However, Cardano has privacy-oriented projects that change this narrative for the better. One example is Profila, a zero-knowledge advertising platform sponsored by the Swiss government innovation agency Innosuisse.
Through this project, users achieve true ownership of their personal data. Should they share it with third parties, they can receive compensation for doing so. Brands are willing to pay top money for more accurate and actionable data for their marketing efforts. Hence, a solid push to achieve privacy in the digital world, especially on the advent of transitioning from Web2 to Web3.
Healthcare Composability
Finding real-world use cases for blockchains and cryptocurrency networks can be challenging. Cardano’s technology enables developers to explore opportunities across numerous industries and verticals, including healthcare. dHealth is one of the projects tackling this aspect. The public blockchain framework enables a positive feedback loop for health-related advice and achievements.
Moreover, the project aims to utilize various nodes designated to perform specific tasks or process particular datasets. It is an intriguing approach to elevating healthcare to the next level. Moreover, the project tackles identity & access, payments, certificates, registries, tracking & tracing, and digital contracts in the healthcare ecosystem.
Growing Versatility
As more developers focus their attention on Cardano, they explore new use cases and opportunities. The ecosystem spans numerous verticals, each with at least a handful of active ventures or projects still in development today. Opportunities range from decentralized finance to the metaverse and healthcare to social solutions empowering the users. Moreover, there are options across gambling, stablecoins – such as crypto-backed algorithmic offering Djed – oracle services, launchpads, and community efforts too.
Overall, Cardano shapes up as a rather versatile ecosystem where anything seems possible. Its eco-friendly technology puts the network miles ahead of other public blockchains. Moreover, its privacy solutions and double-layer architecture are valuable, ensuring good scaling to accommodate the growing network needs.
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