Cardano — extremely fast transactions
Processing transactions is one of the biggest headache of the cryptocurrencies. The adoption of blockchain is strictly connected with the…
Processing transactions is one of the biggest headache of the cryptocurrencies. The adoption of blockchain is strictly connected with the amount of transactions per second, which can be approved.Modern, standard solutions are much quicker. One of the examples is Visa, which is hundreds time more efficient.
Agenda:
- Intro,
- What is it?
- How it works?
- The flow,
- Conclusion.
What Is Cardano (ADA)?
Cardano (ADA) is a blockchain based on proof of stake consensus model. The aim of this network is to use PoS for proceeding transactions extremely fast, according to the registered results, it was achieved.
Cardano’s cryptocurrency is named Ada after Augusta Ada King, Countess of Lovelace (1815–1852), who is commonly regarded as the first computer programmer.
The first launch of ADA was made in 2017 by Charles Hoskinson. However, it was found in 2015.
Cardano is considered as a decentralized applications (dApp) development platform with a multi-asset ledger and verifiable smart contracts.
Founder of Cardano stated that this platform is an alternative for Ethereum network. Both ecosystems are capable of compiling smart contracts and making scalable decentralized applications.
How it works?
Cardano blockchain consists two core components:
- CSL — cardano settlement layer,
- CCL — cardano computation layer.
CSL is described as an unit of account, where transfers of ADA are made with minimal fees.
CCL is a set of protocols which is directly the backbone of the ecosystem and allows to run smart contracts, ensure the security and compliance.
The cardano open source is written using Haskell, universal but not famous programming language.
Cardano functions on a specially designed proof-of-stake consensus model, called Ouroboros.
This mechanism allows for cardano to sent assets and received easily and securely all the time.
Simultaneously, PoS consensus mechanism — Ourboros provides rewards to assets holders, who are staking their ADA in the network and help ensure consensus mechanism.
The flow
The Ourboros flow is described like this:
- Algorithm selects randomly few nodes to have the opportunity for adding new blocks in the ecosystem. This nodes are called “slots leaders”.
- Network is divided into slots, which of them is called epoch.
- Slots leaders are capable of mining their own specific epoch. Anyone who helps in this process is rewarded with ADA.
- Each epoch can be partitioned infinitely, what makes a cardano highly scalable platform. Transactions can be proceeded practically without any limit, not reaching a “bottleneck”.
Conclusion
Cardano network is extremely scalable and allows to make lot of transactions per second, being slowly as efficient as modern standard solutions like VISA. To be precise:
- visa — 24k t/s,
- cardano — 250 t/s, expecting even 100k t/s,
- ethereum — 10 t/s.
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