Cardano is a third generation blockchain solution for dApp development that makes it possible to program blockchains and smart contracts. In many aspects, it’s an improvement over Ethereum, a second generation blockchain platform. It’s very ambitious but still largely undeveloped. With this in mind let’s have a look at 5 key reasons why Cardano will overtake Ethereum in the future.
- Use of layered technology
Cardano will use two layers to separate information as compared to Ethereum. This will happen through:
- The Cardano Settlement Layer (CSL): which will handle token economics and ensure balancing of user accounts.
- The Cardano Control Layer (CCL): which will handle smart contracts and regulation of digital identity.
- Use of Ouroboros proof of stake protocol
The platform plans to use a proof of stake protocol called Ouroboros. While Ethereum uses POW which has many shortcomings, recently they announced their move towards adopting POS systems. Ouroboros will help Cardano stand out because it’s the only proof of stake protocol with mathematically proven security. The system will allow many advanced scaling options when it’s implemented towards the end of 2018. The network will randomly select a node to confirm the next block and then a reward will be allocated. So, the more tokens one has the more likely they are to be selected. Token holders will also have the option to vote for other nodes by contributing their tokens to them and this will increase the chances of the nodes voted being elected.
- Use of Haskell coding language
Unlike Ethereum that has its own language called solidity and it’s optimized for smart contracts, Cardano intends to use a much more dynamic coding language called Haskell. The language will be a more precise code which will use mathematical verification methods to limit human errors and also confirm the correctness of the code. It will also have a process that allows it to verify if it’s being written well. This development will be huge as it will help prevent errors and bugs, the kind of which in the past opened the doors for hacks e.g. the DAO hack.
- Treasury systems that will aid the platform develop itself in the future.
The treasury is Cardano’s solution to how blockchains can support themselves in the future long after their supporting companies are gone. The question is simple, what will Ethereum do when Vitalik goes and the Ethereum foundation is dissolved. This question applies not only Ethereum but other blockchains. The platform plans to include a treasury system that will be funded by keeping 25% of block rewards. This will help fund future developments of the platform without issues. Token owners will have a say in what changes they want to see implemented.
- On-chain governance
Cardano aims to implement a blockchain based style of governance with decisions about the blockchain in the future voted by token holders and the decision is enacted to protocol. They foresee a library of sorts where modifications and upgrades are voted by the token holders. A certain number of votes will be required before the protocol is implemented. However this is contrary to Ethereum’s off-chain governance system which works out smoothly as long as the Ethereum community can agree, but, issues can arise when the community doesn’t come to a consensus, a good example being that of Ethereum and Ethereum classic.
If the ADA team goes ahead and implements the above things then it easy to see why Cardano will overtake Ethereum in the future.
In the comment section below let us know if you believe Cardano will overtake Ethereum in the future.