A key component of Cardano's design is that it will execute existing smart contracts on the Decentralized Trading Platform. In just the last week, the first ever Cardano Blockchain DeFi Exchange platform “Sundae Swap” was launched. Sundae Swap is essentially a scalable decentralized exchange and an automated liquidity provision protocol.
SundaeSwap is a decentralized exchange built for the Cardano blockchain which allows participants of the blockchain to provide liquidity and create a market for others to exchange their native tokens. In return, swappers pay a small fee and liquidity providers earn a return on their deposit. This and future whitepapers will outline an initial product modeled after the protocol popularized by Uniswap, with several innovative adaptations for the Cardano blockchain. Users will be able to swap, stake, lend, borrow, and more!
What Is Cardano?
For context, to understand further applications of Cardano, we need to first understand it. Cardano is a blockchain network and development platform. It is the first blockchain platform to evolve out of a scientific philosophy and a research-first driven approach.
The development team consists of a large global collective of expert engineers and researchers, with expertise in cryptography and distributed systems.
Cardano is what we call a third-generation cryptocurrency. To understand that, you have to go back in time and ask what cryptocurrencies are and where they came from. Bitcoin was the first cryptocurrency, and the problem it was attempting to solve was being able to move value around the world in a completely decentralized way with no intermediary.
A key element of Cardano's design is that it will run existing smart contracts to scale and support thousands of commercial-scale DApps in the future. Cardano is based on a scientific philosophy: the idea that protocols must be designed on principles of how the system could behave. It uses Ouroboros, a proof-of-stake protocol based on academic computer science principles. Cardano aims to set itself apart from other cryptocurrencies by taking an open-source approach to development, similar to Linux. For instance, Cardano is currently working alongside the Ethiopian government to pilot its technology for use in applied areas.
If you have found this article to be insightful, make sure to follow us on Instagram to stay in the loop of all upcoming events and exciting news in the DeFi and crypto space!
Comments