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How Cardano Aims to Create a Stable Cryptocurrency Ecosystem

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Cardano is a cryptocurrency and blockchain network launched in September 2017. With its focus on being a more practical and sustainable blockchain, Cardano aims to tackle the problems many other networks have struggled with. 

Cardano’s native token, ADA, is used to pay for transactions or convert into other tokens on the network. As with any new project, there are plenty of questions about exactly how Cardano works and what it all means for the future of cryptocurrency and blockchain technology. In this article, we’ll take an in-depth look at what Cardano is, what makes it different from other cryptocurrencies like Ethereum, and how it aims to change the blockchain world.

What is Cardano?

Cardano is a decentralised, open-source blockchain network that aims to be “the most widely used decentralised application platform.” To make that happen, Cardano has been built from the ground up to tackle the key challenges that have plagued blockchain technology over the last few years. Unlike many other cryptocurrencies, like Ethereum, that have tried tackling these issues, Cardano has been designed and tested from the beginning with these issues in mind. The ultimate goal is to create a “more balanced and sustainable” cryptocurrency ecosystem. In this way, Cardano is attempting to create the first “fully functional” blockchain platform that can be utilised for a wide range of applications. Cardano is being built as a “two-layered” network, with the first layer being the “control layer” responsible for governance, auditing, and consensus. The second layer is the “settlement layer”, which is responsible for the actual movement of value between people.

Read more: Cardano: Strengths And Weaknesses

Why is Cardano Different?

While many new projects, coins, and tokens continue to pop up, Cardano has a few key features that set it apart from most of its competitors. First and foremost, the network is open-source and decentralised, with most of the project’s code being available for public inspection and debate. Cardano’s creators have chosen to “go it alone” from the start and have released their project with as few ties to other projects as possible. 

This means that Cardano is not being built by any company or organisation but by the general blockchain community. Cardano’s decentralised nature also means that each user and organisation on the network has a say in the future of Cardano. This means that all network participants can vote on key decisions and have some control over the future of the network.

How Does Cardano Work?

The Cardano blockchain is split into two layers: the settlement layer and the computation layer. The first layer is responsible for governance, auditing, and consensus. The second layer is responsible for the actual transfer of value between people.

The link between the two layers makes it easier to upgrade the network, as new functionality and features can be added without affecting the settlement layer. In addition, Cardano has been designed to be more practical and sustainable, which means it’s not only a blockchain but also an entire ecosystem.

Read also: The Cardano Ecosystem Development – Everything You Need to Know

What Problems Does Cardano Aim to Solve?

Cardano is a decentralised blockchain network built with sustainability in mind. In many ways, the network design is intended to protect against future problems that may arise. Cardano aims to tackle two key issues that have plagued other blockchain networks: scalability and sustainability.


The first significant challenge Cardano aims to tackle is scalability. In simple terms, scalability refers to how a network can move and process information. Bitcoin’s scalability issues stem from the fact that the entire network must verify transactions.

 In simple terms, the more people use Bitcoin, the slower the network becomes. Another example of a network that has struggled with scalability is Ethereum. Ethereum has implemented a “lightning network” to solve the scalability issue, but it has not been a long-term solution. The core issue with scalability is the rising cost of gas. As more people use the network, the gas price increases to cover the operation costs. This means that transactions with high gas prices are less likely to be processed.


The second major challenge that Cardano aims to tackle is the issue of sustainability. Sustainability in this context has two meanings. Firstly, it refers to the network being able to operate without funding from outside sources. Secondly, it relates to the ability of the network to process and scale to a large number of users. To be sustainable, the network must generate its income so that it is not reliant on outside funding. Cardano attempts to do this through staking rewards, transaction fees, and other incentives. The other way that Cardano tries to keep itself sustainable is by being able to scale. As more and more people begin to use the network, the network must grow and be able to handle the extra traffic. Cardano attempts to tackle this problem by separating its control and settlement layers. This should allow the network to scale more efficiently, as the control layer does not directly impact the settlement layer.

Final Thoughts

The cryptocurrency and blockchain industry is still in its infancy, with many networks being launched in the last few years. While many of these projects have focused on creating the next “big thing” and getting prompt attention, Cardano has taken a different path. Its creators have chosen a more sustainable approach and created a project that will likely stand the test of time. With its focus on sustainability and scalability, Cardano seems poised to become a significant force in the blockchain world. Its recent introduction of the Vasil fork should prove that. It remains to be seen whether or not the project can live up to the hype, but if it does, it has the potential to change the blockchain landscape forever.

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