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Cardano's Long Term Future
First and foremost, what is Cardano's probably biggest criticism from external parties is its greatest asset going forward into the future. And that is its careful research approach to building the network, critical features, and components.
Cardano's core development community has not rushed to bring things to market. While this bothers many people in and out of the Cardano community, it means that the foundation of these decentralized networks is solid. The painful re-architecture and rework that Ethereum is going through today is similar to the process gone through by Cardano long before it delivered the majority of the main net features. This includes some of its mainstays like proof of stake, driven by its OUROBOROS consensus mechanism, the UTXO ledger model, the native multiple asset ledger, which allows tokens to be managed at the base layer rather than in smart contracts. And a smart contract execution environment (PLUTUS) that is unique from anything else that is out there now.
The greatest foundational element and advantage Cardano has nothing to do with its technology but its community. If we look at Ethereum, the undisputed leader of decentralized application, development, execution, adoption, and despite its first-mover advantage, it's the loyal community of builders and users that made Ethereum a hotspot for continuous innovation and growth. Cardano is one of the few cryptocurrency communities that has the same ethos. When something new is built and launched on Cardano, there is a large volume of users that will jump right in and use it. When there are users who will use something from day one, that will contribute, there is an incentive for users to build new and interesting things on the platform. And when you have developers building, you bring on new users. And when you bring on new users, more developers build, ultimately creating a flywheel effect throughout the community. This is what drove Ethereum's growth over the years. And it's the same for Cardano, where at the crux of it is a set of loyal users who will stick with the network through thick and thin, regardless the price of Ada or the sentiment.
The final point to why Cardano's future looks bright - is its plan for scalability. For Cardano, since there is a finite supply of block space to process transactions and a finite amount of computing resources to execute smart contracts, while there is a higher demand than those resources can accommodate, it creates a problem. Unlike Ethereum, where there is a fee market for processing transactions. It means that you pay more to get processed faster. However, with Cardano, it is a cue process, where you send your transaction, you wait for it to be processed, and you do not bid with fees for faster transaction validation. Cardano has been built with scalability in mind since the beginning. But it's only now reaching the point where it's taken measures to allow scalability. For example, to tackle the aforementioned issue, in February 2022, Cardano raised the block pass and memory space by 11%, which effectively increased the number of transactions that could be processed, hence more scale.
Another area where Cardano is looking to improve this year is block propagation. This is the process where each node of the network receives and validates new blocks of transactions in a shorter period of time. A more efficient block propagation called "Pipelining " outlined a methodology for block propagation that allows various processes involved to happen concurrently or with some overlap so that they can complete much faster. This results in an overall more efficient process for block propagation and gives Cardano more headroom to accommodate potentially bigger blocks, bigger scripts, and in general, more efficient processes that make the network more scalable. In addition to this, several upgrades have been proposed to the core smart contracts scripting environment to make PLUTUS smart contracts more efficient on the network and in its interaction with the native extended UTXO ledger model. So across the node implementation itself, the smart contract environment, and other components of Cardano, efficiency improvements are being made to this end to achieve higher scalability.
Therefore, with new changes coming within Cardano and the company gearing towards scalability, the long-term future for Cardano looks bright. Cardano is far from dead. Its true rise to form has only just begun.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2022 Tushar