Cardano, a futuristic and feature-rich cryptocurrency, is making the crypto adoption process easier and more worthwhile. ADA, Cardano’s native token, however, does not represent this. In comparison to other “shitcoins,” at least. Perhaps the coin requires something similar to what a few popular altcoins have: spirit and fans. Cardano, on the other hand, is attempting or planning to make its blockchain interoperable. It can even compete with Ethereum, its largest opponent.
In the most recent AMA session, Cardano’s chief executive mentioned a few aspects/ideas.
One of the most well-known personalities in the world, Charles Hoskinson, gave his story about Cardano and its ecosystem integration.
Cardano’s Layer 2 solution was created in tandem with the blockchain as a forerunner to the network’s potential scaling problems. First, let’s talk about rollups. These transactions are carried out outside of the Layer 1 blockchain. Rollups, like most Layer 2 solutions, enhance transaction output while lowering gas costs. ‘They are improving year by year. Now, I believe that every system has some idea of it,’ he continued.
“We’ll get rollups for free with Mamba, So when the EVM sidechain comes those roll up infrastructures, can and will be rolled over as a scalability solution for the EVM Sidechain.”
Cardano’s DeFi space potential will be boosted thanks to the Ethereum Virtual Machine (EVM) sidechain and this advancement. However, the question remains unanswered. Is it necessary for Cardano to have roll-ups on the main chain? He obviously sees possibilities in this situation. Furthermore, he has a suspicion that
“…several DEXs are gonna move in that particular direction. So it’s something there, it’s a buy instead of build, because there’s already a lot of great solutions that port it to L2(s). We’ll get them on the Ethereum side first, but certainly it’s going to be fun to port some of those to the UTXO model.”
Cardano is shooting for the stars.
The UTXO approach, as previously said, combines the best of both worlds: Cardano and Ethereum. In a prior interview, Hoskinson repeated or rather contrasted the same to compare his platform to its arch competitor, ETH.
He then went on to talk about zero-knowledge proofs. These have grown in importance as a means of tackling privacy and scalability issues in cryptocurrencies and other applications. Sonic, for example. “We’ve seen a lot of wonderful development with plunk,” he added, “and there’s a lot of Next Generation ZK stuff that’s coming alive.”
As IOHK CEO admitted, StarkWare made some odd design decisions. ‘Their designs were future-proof in the sense that they use hash-based cryptography, so they’re post-quantum.’ However, they are not as effective as the traditional ones, according to Hoskinson. Cardano’s Catalyst fund enters the picture at this point.
This is a great venture for somebody wanting to do something on Cardano when Catalyst funds will be made available. We’ll see a whole wave of ZK companies come in, I think we’re one of the best positions of the ventures in the crypto space to pursue this.
In addition, Hydra will be important, as will the fact that Cardano will get a lot of traction soon. Hydra increases the network’s efficiency by allowing the majority of transactions to be conducted off-chain, with the main-chain ledger serving as a safe settlement layer.
The Hydra Head protocol is still in its early stages of development. Despite the fact that he didn’t specify a release date, he expressed optimism regarding the aforementioned advances. Nonetheless, as history has shown, certain delays are possible. As things stand, November’s forking event will be combined with February’s plan for a “bigger release.”
HODLers, on the other hand, remain optimistic about this cryptocurrency.