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Cardano Treasury System
The Cardano Treasury System is a decentralized financial structure designed to fund the ongoing development and improvement of the Cardano blockchain ecosystem. It accumulates funds through network activities and allocates them to proposals that are voted on by the Cardano community, making it a key component of the governance model, especially as the platform transitions…
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Cardano Governance Tool
The Cardano Governance Tool is a set of mechanisms and platforms that enable decentralized governance within the Cardano ecosystem. It allows the community to participate in decision-making processes, vote on key proposals, and shape the future of the blockchain. The governance system is an integral part of Cardano’s evolution, particularly in the Voltaire era, which…
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Determinism
Determinism on Cardano refers to the property where the outcome of transactions and smart contracts can be predicted with certainty before they are executed on the blockchain. This is a key feature of Cardano’s Extended UTXO (eUTxO) model and is different from other blockchain models, such as Ethereum’s account-based system, where the outcome of a…
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Transaction Costs
Transaction Costs on Cardano: Transaction costs on Cardano refer to the fees users pay to execute transactions, deploy smart contracts, or interact with decentralized applications (dApps) on the blockchain. These fees are necessary to compensate network validators (stakers and stake pool operators) for securing and processing transactions. Key aspects of transaction costs on Cardano include:
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Deflationary Currency
A deflationary currency is a type of currency where its total supply decreases over time, either due to a reduction in the issuance rate or the active removal of tokens from circulation (via mechanisms like burning). This decrease in supply can make the currency more scarce, potentially increasing its value over time as demand remains…
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Layer-2 Scaling Solution
A Layer-2 scaling solution on Cardano refers to an additional protocol or network that is built on top of Cardano’s main blockchain (Layer-1) to enhance its transaction throughput, reduce fees, and improve efficiency without altering the underlying blockchain’s security or decentralization. These Layer-2 solutions are designed to handle more transactions and computational tasks off the…
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Zero Knowledge (ZK) Rollups
Zero Knowledge (ZK) Rollups are a type of Layer 2 scaling solution designed to improve the transaction throughput of a blockchain while maintaining security and decentralization. Although ZK Rollups are most commonly associated with Ethereum, they can also be applied to other blockchains, including Cardano. They are particularly effective in reducing congestion and lowering transaction…
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Hard Fork Combinator (HFC)
The Hard Fork Combinator (HFC) is a unique innovation in Cardano that allows the blockchain to undergo upgrades and implement protocol changes seamlessly without disrupting the network’s continuity. It was introduced by IOHK (now IOG), the development team behind Cardano, as a way to combine different protocol versions in a single chain, avoiding the typical…
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What are the different types of tokens on Cardano?
Cardano supports multiple types of tokens, thanks to its multi-asset ledger introduced with the Mary hard fork in March 2021. These tokens are categorized based on their purpose and how they interact with the Cardano blockchain. Here are the main types of tokens on Cardano: 1. ADA 2. Native Tokens Key Features of Native Tokens:…
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Extended UTxO (eUTxO) Model
The Extended UTxO (eUTxO) Model on Cardano is an advanced version of the Unspent Transaction Output (UTxO) model, which was initially used by Bitcoin. The eUTxO model enhances the original UTxO structure by supporting smart contracts and enabling more complex transactions on the blockchain. It was implemented with the Alonzo upgrade in September 2021, when…
