As part of the Cardano ecosystem, ADALend is creating a scalable and decentralized lending protocol that the Cardano community will regulate. The next generation of flexible financial services for digital asset markets will be powered by the ADALend protocol, which will provide a foundation for fast loan approval, automatic collateral, reliable custody and liquidity in digital asset markets.
Why Cardano?
Cardano (ADA) is a Blockchain platform with various capabilities to power the ADALend protocol. To produce a scalable, transparent and flexible cryptocurrency, Cardano (ADA) uses cutting-edge technology. Being a public blockchain network makes it one of the many well-known cryptocurrencies that have grown and developed rapidly in recent years. With Input Output Hong Kong (IOHK), Charles Hoskinson began building work in 2017 for arguably the most vital third-generation blockchain asset currently on the market.
There is a well-organized team at Cardano (ADA) and the company has a clearly defined plan for the future development of their projects. With its massive scalability potential and ability to build decentralized applications, Blockchain is a robust technology that meets future demands in many fields.
ADALend brings life to the DeFi space
ADALend has chosen Cardano as the primary Blockchain to power the DeFi system, as opposed to the Ethereum-based AAVE. Because Cardano contracts are significantly cheaper to send, receive and initiate. In 2021, gas prices on Ethereum soared, causing dissatisfied users to realize that fees were a serious concern for anyone using the AAVE protocol at the time. The average transaction cost in 2020 and 2021 was reported to be up to $80 in some cases. Transaction fees on Cardano remain low compared to other cryptocurrencies, primarily due to the network’s dual-layer design that isolates computations from settlements.
Because it still uses a Proof-of-Stake (PoW) Blockchain, the Ethereum network is still inefficient compared to Cardano Blockchain, which uses a Proof-of-Stake (PoS) system that follows the same fee principles as the Ethereum network. Compared to the Ethereum Blockchain, the Cardano Blockchain allows a significantly larger number of transactions to be processed. Cardano Blockchain runs significantly faster. Cardano codebase to make auditing as simple as possible; It is created in Haskell, a widely used programming language explicitly chosen for this purpose.
ADALend will also benefit from Chainlink and Ergo oracles
Solidity, a proprietary programming language, was created by Ethereum developers and, far from subject to rigorous peer review, was written by only a small number of programmers. The more engineers who can review and audit the code, the more secure and impenetrable the system will appear. In other words, Cardano developers want their blockchain to be as free of code flaws as possible to avoid future security risks.
ADALend will leverage Chainlink and Ergo oracles to provide a more secure and efficient experience for customers. Using Ergo’s oracle repositories is more efficient and configurable than Chainlink’s Oracle architecture, which relies on many single oracle data sources. On the other hand, AAVE only uses Chainlink oracles.
Cardano uses the Ouroboros consensus algorithm, which is a Proof-of-Stake consensus system. Due to the ability of ADA holders to delegate their assets to secure the network, this closed-loop approach maximizes the efficiency with which network resources are used. The result is a system that uses significantly less resources than Ethereum, primarily powered by miners that consume a lot of energy to maintain the network and consume large amounts of electricity in the process.
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