Cardano is known to be the third-generation blockchain that is developed to improve the performance of previous generations. In 2017, Cardano has introduced as a decentralized blockchain with a proof of stake (PoS) system. Cardano is has launched with aim of solving some issues that are faced by the other generations such as scalability, sustainability, and interoperability. At its initial stage, Cardano could make 10 transactions per second. Later with innovation made to this technology, now Cardano can deal more than 1,000,000 transactions per second.
Cardano has a lot of advantages over Ethereum. Because it has the same problem as the bitcoin scalability and congestion problem. Also, the proof of work model of Ethereum requires a large amount of electricity for the miners to create the blocks by solving the problems. Now, Cardano has launched smart contracts to make it more functional like Ethereum.
What is a smart contract?
You may all know about traditional contracts that have a lot of disadvantages. Whereas smart contracts exist only in the digital and programmable form on the Cardano blockchain that is decentralized, sustainable, scalable, and interoperable. Therefore, no one gets the power to undermine the contract. The cardano smart contracts rely on only the execution of self-coded smart contracts instead of the individuals or companies to execute a smart contract.
Also, the contracts are stored on the distributed Cardano blockchain securely. One could access the details at any time they want. This is so beneficial for the individual who wants to manage large-scale data. Cardano is unique compared to other blockchain platforms. It differs from the protocols, high assurance codes and uses functional language to secure the protocol. A smart contract offers full visibility to the users and it is impossible to do any changes.
It works for a different purpose and mainly for crowdfunding. Cardano blockchain-based smart contracts are used for representing crowdfunding campaigns. With this option, it is completely transparent and secure. Hence, the upgrade of Cardano has been made to increase their growth. Cardano provides decentralized finance services. Whereas decentralized finance’s main goal is to eliminate the traditional intermediaries such as banks.
So, this Cardano decentralized blockchain provides the best services for decentralized finance without any intermediaries. It allows the investors to develop and execute smart contracts that result in efficient transactions. Thus, before you choose to invest in Cardano, you should learn about smart contracts.