2021 was a great year for crypto, where cryptocurrencies have seen the biggest bull market ever.
Cardano has seen a lot of developments going on in 2021. The team has partnered with two African countries — Ethiopia and Tanzania — and will work on creating digital identities, education, mobile internet connectivity, and financial acceptance in these countries.
As smart contracts are soon coming on Cardano and The Road To Alonzo Continues, with IOHK Launching The Cardano Alonzoblue2.0 Testnet, a bright future stands in front of ADA.
In an interview with CryptoPotato, IOHK’s Chief Technology Officer, Romain Pellerin, expressed his thoughts on many important things regarding Cardano.
When asked that was the exponential crypto market growth of 2021 was the reason for Cardano growth, he said:
“I looked at the price movements when we released software and we had a lot of price action last summer, before this bull market — when we released the Shelley update.”
According to him, launch of Cardano staking was the main reason for project growth:
“About 70% of ADA is staked. And all of this contributed to the price action. And I think we benefited from the bull market and after all, you have the amplification of the overall industry, so we benefit from that.”
He said that whenever we launched a new feature on Cardano like staking, the ability to launch NFT, running a pool, etc., more people become interested in ADA, and the Cardano network grows.
Pellerin said that Cardano’s energy consumption is 0.01% as compared to BTC. Bitcoin uses a proof of work mechanism, whereas ADA relies on Proof Of Stake, which does not use hashing power.
we will always be greener than every proof of work blockchain
He said that BTC energy consumption issues are long-term and are not going away soon.
Look at Bitcoin — it’s centralized around huge mining farms which are all concentrated in some part of the world like China and other countries. In Cardano, we have 2,000 stakepool operators scattered across the world, which are producing blocks — and it keeps growing. This [hashing power] is only going to keep increasing because people are fighting for the next block. They are trying to put in more power to win over other mining pools. So, it’s sort of concerning — not for now, but for the future — imagine if most of the financial system runs on Bitcoin — how much consumption will be in 10 years?
Cradano And Ethereum:
On Cardano and Ethereum comparison, he said:
“I’m not sure why Cardano is compared to Ethereum. Ethereum is a proof-of-work blockchain. We run a different ledger model.”
He pointed that Cardano will match up with ETH:
“We (Cardano) have smart contracts capabilities and we will be on par with Ethereum in terms of functionality. But we are very different to Ethereum technically — proof of stake vs. proof of work, and also in the way we develop the network.
We are way more research-focused and we build slowly but our system is robust to support the open financial system of tomorrow. When you look at Ethereum, their approach is rapid prototyping and releasing fast, but at the end it’s a prototype, and we are not building a prototype.”
Cardano Smart Contracts:
on Cardano smart contracts he told:
“First, it’s important to mention that Marlowe is running on Plutus — our smart contract virtual machine/engine, so to speak. It’s functional programming, so kind of dedicated to experts.On top of that, we build what we call domain-specific languages that are dedicated to a particular industry. Marlowe is for the financial industry and implements ACTUS standards, which, for example, defines how you transact with escrow and how you actually write that transaction and formalize it through standards. It’s also greatly adapted to create decentralized finance applications (DeFi) while supporting the original language of institutions — financial institutions. It’s very simple for them because they are already used to that language.”
Cardano network is growing exponentially, many investors and long-term holders are entering the Cardano space because of so many developments. Cardano smart contracts testnets are already up and working. The launch of smart contracts will launch a new era for Cardano. A bright future stands in front of Cardano.