We know that Bitcoin is a first generation blockchain and Ethereum is a second generation blockchain. What they both have in common is their consensus, Proof of work, and that they cannot scale. They have the advantage of being the first, but that condition will not be sustainable over time.
So much, that Ethereum is in the process of switching to the Proof of Stake consensus. Cardano was born PoS.
Binance has taken advantage of its customer flow and Ethereum’s expensive fees, with its Binance Smart Chain (BSC) it has gone all in on the DeFi competence, basically copying Ethereum’s network with some changes. Binance is nothing revolutionary, it is centralized (a few validators) and whales make up over 80% of the BSC.
Cardano has its true blockchain 3.0 architecture, because its operation runs on two layers, the accounting layer and the computational layer.
Most investors are not aware of this, and others do not give it the importance it deserves, because they do not understand its impact.
These two layers are unique to Cardano, unlike Ethereum and BSC blockchains which use a single layer, leading to bottlenecks and very high gas rates.
The accounting layer is where p2p transactions occur. The computational layer is where smart contracts occur and where computations are performed.
Cardano’s architecture is built for regulatory compliance, which will allow use by governments and banking institutions, but also by individuals, as ZKP (Zero Knowledge Protocol) ensures that data remains encrypted and private, and identity can be enforced without revealing identity data.
Zero Knowledge Protocol (ZKP) is an advanced cryptographic protocol used to create highly secure and anonymous distributed systems. ZKP protocols allow information to be shared and verified without revealing unnecessary data, thus maintaining a very high level of security.
Cardano is decentralized, and has a full governance system built in, it will function as a DAO when Voltaire is fully deployed.
Built from the ground up with academic papers, Plutus smart contracts are based on the Haskell language, one of the most secure in the computing environment.
With the use of metadata, the two-layer architecture, the arrival of Hydra (over 1 million tps), and interoperability with other blockchains with sidechains, Cardano is shaping up to be the most powerful player in the ecosystem.
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