Introduction To Cardano- The Blockchain That Solves Multiple Problems

in #cardanolast year


At the time of Bitcoin blockchain created, it hasn't thought by the Satoshi Nakamoto that there will be so many challenges bitcoin blockchain going to face like scalability, security, and decentralization in the terms of transaction per sec (TPS), network and data. So for solving this problem various blockchains created but till now a single blockchain can't solve all the problems and to complete multiple goals, we depend on various blockchains or platforms.

For examples- To create token we use the Ethereum but on the time of token conversion we use a third-party exchange, On the time of token trading we use third party exchange but every coin not listed in a single exchange we have to visit multiple exchanges to trade multiple coins and a new story start when we contact the bank to convert crypto to fiat currency, To reduce transaction fees use stellar but for smart contract and dAaps we return to Ethereum, Again to start the proof of stake mining and to save electricity we again switch from Proof of Work blockchain to Proof of stake blockchain, etc.

From these examples, understand how we are not getting everything in one place, and because of this problem we visit or use multiple platforms that not only increase complexity but also consume time.

what will happen if I tell you that anyone can get everything in one place?

So ladies and gentlemen introducing Cardano which is the solution of various blockchain and real-life problems.

Cardano Blockchain is created out of a scientific philosophy and a research-first driven approach so keep reading this article I will tell you how Cardno help to solve various problems.

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Basically, Cardano is creating a multi-layer protocol, and each layer dedicated to solving various problems related to Scalability, Interoperability, and Sustainability.


So in this article, we will discuss deeply each layer and try to understand how they solving various problems related to Scalability, Interoperability, and Sustainability.

Layer-1:- Cardano's settlement layer

This is the first component of the Cardano blockchain created by IOHK with the University of Edinburgh on this layer all the transaction of ADA coin takes place and this layer gives the power to Cardano blockchain to fix Bitcoin’s design flaws.

Cardano network uses Ouroboros Proof of Stake consensus protocol on Cardano's settlement layer, because of which we get a fast transaction with fewer transaction fees, hence we get scalability in the perspective of speed and the Ouroboros Proof of Stake consensusdesigned this way when more people will join the Cardano network as miners then organically the speed of Cardano blockchain will grow and Cardano get scalability in the perspective of network and after that, with a huge network Cardano can process huge data which leads to scalability in the perspective of data.

On the Cardano's settlement layer multiple users can create assets, this layer supports various kinds of signature including quantum resistant signatures for higher security when quantum computer lunch in the future, and it supports KMZ side-chains so can Cardano blockchain can Interoperable with other blockchains.

Layer-2:- Cardano's computational layer

This is the second but very important part of Cardano blockchain in Cardano's computational layer all the computational works like dAaps creation, smart contract implementation, etc takes place.

Layer 1 and layer 2 interconnected to each other by the mean of Ouroboros Proof of Stake consensus algorithm.

On Cardano's computational layer you can create and implement dAaps and smart contracts by using languages like Solidity (Programming language of Ethereum) and Plutus (Programming language of Cardano), And you can create tokens or special purpose and Cardano.

Importance of KMZ Side chains

KMZ stands for Kiayias, Miller, and Zindros and Cardano's side chain based on the new protocol that works on proofs of proofs of work by Kiayias, Miller, and Zindros.

KMZ side-chain protocol is a part of Cardano's settlement layer, but it will help to do transactions between Cardano's computational layer or other blockchain and institutions.

How to take your first step into Cardano blockchain?

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To put your first step in the Cardano blockchain you have to download the Daedalus wallet where you can store your coin, generate the paper certificate for maximum security, in the future, you can able stake your coins to take part in the block generation process and can use the dAaps created by Cardano community.


After deeply study the white paper of Cardano I got to know that Cardano wants to create an internet of blockchain where not only cross-blockchain transaction takes place but also you can directly deal with banks. Cardano wants to remove all third party institutions like an exchange and middle man for making transactions that help not only to save time but also save money. In short, with the help of Cardano blockchain, all the systems can talk to each other and on the way to this goal, Cardano will also solve the problems of various blockchains.

For more information, visit the following links-

Website, White paper, Daedalus wallet, IOHK, Forum, Twitter, Facebook, Reddit

Risk warning!!: All the information above are not financial advice and neither legal nor illegal advice all are my opinion and this article is of your knowledge Before. investment do your own research because nobody will responsible for your profit or loss

Author's details:
Name- Jitendra Naik
Email- [email protected]


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