Ethereum Gas Fees Skyrocket - Investors Flock to Cardano

Ethereum Gas Fees Skyrocket to $187 – Investors Flock to Cardano as Ecosystem Receives Massive Hydra Scaling Update

John KumiBy John Kiguru edited by John Kiguru
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  • Cardano has become the preferred destination for investors as Ethereum’s gas fee skyrockets to $187.
  • Cardano recently launched its Hydra upgrade to make the network more scalable.

Hydra, the layer 2 protocol recently launched on the Cardano blockchain has made the ecosystem more attractive for investors as it addresses the scalability problem. The Ethereum network on the other hand has become more difficult to use as its gas fee continuously rises to unimaginable heights. According to reports, the gas fee has skyrocketed to $187, forcing investors to move to the Cardano ecosystems. 

In a long Twitter thread, Sebastien Guillemot, CTO and co-founder of DCSpark explains that Cardano is only 6 percent to reach its maximum capacity.

Over the years, Cardano has implemented several initiatives to upgrade its network including its February Valentine upgrade. This upgrade is reported to add more support to a curve called SECP256k1.

Bitcoin, Ethereum, and Binance Coin use this for their public key cryptography, so the change improves compatibility between Cardano and these other leading blockchains. In particular, people and firms creating decentralized applications (DApps) on Cardano will be able to use two more types of signature, Elliptic Curve Digital Signature Algorithm (ECDSA) and Schnorr, to verify data. This is in addition to Cardano’s native signature algorithm, the Edwards-curve Digital Signature Algorithm (EdDSA).

In addition to helping developers to save money and time and also removing errors that could jeopardize security when writing smart contracts in Plutus, it also aims to improve interoperability. 

The Valentine signature changes, which means transactions generated on a sidechain or another blockchain can be easily verified. Cardano’s Hydra also gives the platform an edge over Ethereum as it speeds up the processing time for applications and also frees up the main chain from engaging in that function. More interestingly, it reduces costs, making it more attractive to users. 

Cardano Works on DJED and the Sustainability Concept

Cardano has also placed great significance on sustainability as it seeks to make the blockchain more decentralized to prevent the network from being controlled by a single entity or small group of people. In this case, enabling Peer-to-peer (P2P) communication helps the network to be more decentralized as thousands of computers being operated by Cardano’s stake pool operators interact with each other.

Cardano also added the DJED stablecoins to its space of Decentralized Finance (DeFi) offerings in January. In a day, the stablecoin attracted 27m ADA in backing. Also, it was listed on exchanges including MinSwap, MuesliSwap, and Wingriders. The backing is said to unlock the DeFi opportunities in the Cardano ecosystem with DJED being used to settle payment and fees.

To improve the network further, Cardano has increased its training course to benefit programmers and other users with no programming knowledge. According to the statement, the IOG Academy will provide technical guides, courses, and Q&A sessions on Marlowe and Plutus. 

A starting point for this is a course on GitHub that gives the basics of the Haskell language for Marlowe and Plutus. Over the past five years, more than 500 people at IOG have been beavering away on Cardano. That figure is now being multiplied by a large number of developers outside the company. They have launched 119 projects so far, with a thousand more in the pipeline. With every upgrade to Cardano, IOG aims to make their life easier and the road to decentralized finance for the world easier.

 

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This article is for informational purposes only and does not constitute investment advice. Read full disclaimer

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John is a seasoned cryptocurrency and blockchain writer and researcher, boasting an extensive track record of years immersed in the ever-evolving digital frontier. With a profound interest in the dynamic landscape of emerging startups, tokens, and the intricate interplay of demand and supply within the crypto realm, John brings a wealth of knowledge to the table. His academic background is marked by a Bachelor's degree in Geography and Economics, a unique blend that has equipped him with a multifaceted perspective. This diverse educational foundation allows John to dissect the geographical and economic factors influencing the cryptocurrency market, offering insights that go beyond the surface. John's dedication to the crypto and blockchain space is not merely professional but also personal, as he possesses a genuine passion for the technologies that underpin this revolutionary industry. With his astute research skills and commitment to staying at the forefront of industry trends, John is a trusted voice in the world of cryptocurrencies, helping readers navigate the complex and rapidly changing terrain of digital assets and blockchain innovation. John Kiguru is an accomplished editor with a strong affinity for all things blockchain and crypto. Leveraging his editorial expertise, he brings clarity and coherence to complex topics within the decentralized technology sphere. With a meticulous approach, John refines and enhances content, ensuring that each piece resonates with the audience. John earned his Bachelor's degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi. His academic background enriches his ability to grasp and communicate intricate concepts within the blockchain and cryptocurrency space.
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