ADA is a resource that decentralizes Cardano

Every decentralized and public blockchain network needs some means on which decentralization is based. For Cardano, it’s ADA coins. This is a finite, non-renewable resource with a non-zero market value. For PoW networks like Bitcoin, the two resources are ASIC hardware and electricity. Both resources are renewable, infinite (can be produced over and over), and have a non-zero market value. Let’s take a closer look at Proof-of-Stake and Proof-of-Work and compare the advantages and disadvantages in the context of different attack vectors.


The 51% attack is very costly for Cardano and Bitcoin and probably difficult to commit in practice. However, it is not the only attack vector against which the blockchain must be resilient. Protection against many attacks is based on decentralization. PoW miners fight among themselves and drive each other out of business. This leads to more centralization and therefore weakened security, especially against internal attacks (censorship resistance). ADA holders are working together to decentralize and secure Cardano not only when it comes to the production of blocks but in near future also within governance. Dysfunctional governance can also be one of the attack vectors.

This article was prepared by Cardanians with support from Cexplorer.

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