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Review on Cardano by Aniruddh Ravel
Cardano
The Cardano platform comprises two layers – the Cardano Settlement Layer and the Cardano Computation Layer. Both of which are designed to offer flexibility for businesses to tailor smart contracts for their internal requirements and those of their consumers.
Cardano Settlement Layer
This is the Cardano network’s balance ledger. A proof of stake (PoS) algorithm is adopted here to create new blocks on the Cardano blockchain and authorise new transactions. It was designed and built by IOHK in conjunction with the University of Edinburgh, the University of Athens and the University of Connecticut. There are similarities between Cardano’s Settlement Layer and Bitcoin
Cardano Computation Layer
The Cardano Computation Layer is the extra layer upon which smart contracts can be deployed. Cardano’s development teams are currently hard at work to design a unique programming language that can build and execute smart contracts. This will be known as Plutus. Side chains have also been incorporated to link transactions between the Settlement and Computation Layers. Cardano’s multi-layer architecture should also make it simpler for soft fork updates than its predecessor, Ethereum.
Real-life applications
What is Cardano and how does Cardano work for real life uses? The Cardano whitepaper stated when the project began to gather momentum that the “overall focus” was to “provide a more balanced and sustainable ecosystem that better accounts for the needs of its users as well as other systems seeking integration”.
It is hoped that as the months and years go by and the Cardano blockchain’s userbase expands, Cardano will offer the following real-life uses:
As a next-generation payment protocol, designed to offer swift and economical transactions between cryptocurrency users
The creation and deployment of second-generation smart contracts, which could incorporate a plethora of decentralised applications made to enhance a wide range of industries
The building and resources of dApps released on the Cardano blockchain
The digitisation of physical assets
Pros
- Wholly open-source
- Platform built using impregnable Haskell language
- Smart contracts infrastructure capable of handling commercial level usage
- Proof-of-stake mechanism allows for Cardano mining
Cons
- Still a largely unproven platform
- IOHK only contracted to develop network until 2020
