Cardano: Unlisted Among the Most Decentralized Chains Unlike Ethereum—Here’s Why
Despite Cardano’s enduring prominence in the industry, recent rankings of blockchains based on decentralization levels noticeably omitted it from the upper echelons, sparking curiosity and discussions within the cryptocurrency community.
Measuring decentralization in blockchain introduces varying metrics. Unlike Ethereum, which operates on the EVM (Ethereum Virtual Machine), allowing interoperability and similar structures across different networks, Cardano takes a different approach with its agreed-upon Ouroboros algorithm.
Cardano often distinguishes itself from EVM-based chains due to its unique network architecture and operational mechanisms. While Ethereum employs a Proof-of-Stake (PoS) protocol, Ouroboros differs significantly from standard PoS mechanisms. It’s designed to achieve consensus in a more energy-efficient and scalable manner.
This commitment to scientific philosophy in its protocol development sets Cardano apart, often rendering it distinct from other EVM-compatible chains.
Cardano’s Settlement Layer (Cardano SL) and Computation Layer (Cardano CL) operate independently, setting its functional capabilities apart from those of other blockchain networks where these layers are usually interwoven.
The Cardano network also emphasizes a community-driven approach to governance and development. Initiatives like project treasury funds and the Voltaire phase, aiming for a fully decentralized decision-making process, attest to its high degree of decentralization, even if not necessarily validated by Nakamoto coefficients.
READ MORE "Concerns Arise as Majority of Cardano Holders Experience Losses, Highlighting Selling Pressure"
Moreover, Cardano’s approach to staking and block production involves a random process for electing slot leaders, differing from Ethereum’s mechanism. This adds another layer of complexity when comparing the two networks based on the number of entities collectively capable of shutting down or controlling the network, as Nakamoto coefficients attempt to measure.”
Important Notice: The content of this article is for informational purposes only and should not be construed as financial advice. Chinwa.tech assumes no responsibility for any investment decisions made based on the information provided herein. It is strongly advised to seek the guidance of a qualified specialist or financial advisor before making any investment choices.
