Review on Cardano by Jackie Chan

Name: Cardano
Item: Cardano
Rating: 4

September 15, 2018

Unlike Ethereum, Cardano utilizes a two-layered system (i.e. two sets of…

Unlike Ethereum, Cardano utilizes a two-layered system (i.e. two sets of processes occurring simultaneously): (i) a settlement layer similar to Bitcoin to record transactions, and (ii) a control layer for executing “smart contracts” similar to Ethereum. By separating the network into multiple layers, Cardano can address problems with each layer independently. This is similar to the communications protocol for the Internet, which uses several layers including an Internet layer for routing data to the appropriate destination, and an application layer for defining the protocols used to exchange the data.
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Pros

Cardano uses proof of stake as its validation method rather than the proof of work systems employed by many cryptocurrencies including Bitcoin. This significantly reduces the amount of processing power required to validate the network. Proof of stake validation method increases transaction speed and significantly reduces computing power necessary to run the network compared to proof of work used in Bitcoin, Ethereum, and many other decentralized networks

Cons

The Plutus programming language for writing smart contracts is still in development. As such, the development community and environment are filled with uncertainty. Nonetheless, the development of Cardano’s platform has been consistent and it is only a matter of time before the platform is proven and tested.