As part of the Cardano ecosystem, ADAL side Establish a scalable decentralized lending agreement, and the Cardano community will supervise it.
The new generation of flexible financial services for the digital asset market will be supported by the ADALend agreement, which will provide the basis for rapid loan approval, automatic mortgage, trustless custody and liquidity in the digital asset market.
Why is Cardano?
Cardano (ADA) is a blockchain platform with multiple functions that can provide support for the ADALend protocol. In order to produce scalable, transparent and flexible cryptocurrency, Cardano (ADA) uses cutting-edge technology. It is a publicly accessible blockchain network, and this fact has made it one of the many well-known cryptocurrencies that have grown and developed rapidly in recent years. Through Input Output Hong Kong (IOHK), Charles Hoskinson laid the framework in 2017 for undoubtedly the most important third-generation blockchain asset on the market.
Cardano (ADA) has a well-organized team, and the company has a clear plan for the future development of the company’s projects. With its huge scalability potential and the ability to build decentralized applications, blockchain is a powerful technology that can meet future needs in many fields.
ADALend heating DeFi space
ADALend chose Cardano as the main blockchain to support the DeFi system, which is different from Ethereum-based AAVE, because the cost of sending, receiving, and initiating contracts for Cardano is much lower. In 2021, the price of Ethereum gas soared, making dissatisfied users realize that the cost was a serious concern for everyone who used the AAVE protocol at that time. According to reports, in some cases, the average transaction cost in 2020 and 2021 will be as high as $80 (BitInfoCharts). Compared with other cryptocurrencies, Cardano’s fees are still very low, mainly because the network’s two-tier design separates calculation and settlement.
Since it still uses a proof-of-work (PoW) blockchain, the Ethereum network is still inefficient compared to the Cardano blockchain that uses a proof-of-stake (PoS) system. The system follows the same fee principle as the Ethereum network Compared with the Ethereum blockchain, the Cardano blockchain can handle a large number of transactions. The Cardano blockchain runs much faster. In order to make the audit as simple as possible, the Cardano code base was created in Haskell, a widely used programming language, chosen specifically for this purpose.
A particularly professional programming language, Solidity, was created by Ethereum developers, written by only a few programmers, not to mention undergoing rigorous peer review. The more engineers who can check and audit the code, the more secure and difficult to penetrate the system. In other words, the developers of Cardano hope that the blockchain is as free of code defects as possible to prevent future security risks.
ADALend will use the oracles Chainlink and Ergo to provide customers with a safer and more efficient experience. The oracle pool using Ergo is more efficient and configurable than Chainlink’s oracle architecture, which relies on many single oracle data sources. AAVE only uses Chainlink oracles.
Cardano uses the Ouroboros consensus algorithm, which is a proof-of-stake consensus system. Since ADA holders can entrust their assets to protect the network, this closed-loop approach maximizes the efficiency of network resource utilization. The result is a much less resource-intensive system than Ethereum, powered by miners who consume a lot of energy to protect the network, consuming a lot of electricity in the process.