Both smart contract platforms for Dapps that are challenging Ethereum in the space.
Market design will look at 5 aspects – staking, mining rewards, market thickness, congestion and safety.
Both DFN and ADA uses Proof-of-Stake consensus protocols.
Dfinity uses PoS consensus protocol. Staking clients process data and are rewarded for it. Each client receives regular rewards as it participates in supporting the network.
Cardano created its own PoS protocol, Ouroboros. A consensus protocol, it is similar to a Delegated Proof-of-Stake (DPoS) system in that staking power can be pooled to trusted parties so that participants can all be part of the governance process. Its 2 properties – persistence and liveness, ensure stable and honest strategies.
Dfinity’s rewards are subjected to the Blockchain Nervous System, which wishes to create stability. It is possible that the network rewards in the native token, DFN, or price stable cryptofiat token, PHI.
Ouroboros protocol reward mechanism is the approximate nash equilibrium that prevents deviation attacks. Stakers are rewarded by the percentage of their owned coins. Large stakeholders can earn transaction fees.
Market Design Essentials
2 sets of DNF tokens ready for airdrop. These are for people who join the mailing list and undergo KYC and AML checks. A total of 35 million CHF worth of tokens would be dropped, rewarding 100 CHF – 2500 CHF per person. That comes to about 110,000+ individuals in the ecosystem.
There are currently 26 million ADA tokens in circulation with 14,400 paid invoices – suggesting 14,400 people. Most tokens are held by Japanese, but there is a focus by Cardano to move to African continents and increase the user base in Africa.
Threshold Relay creates special beacons that allow randomly selected nodes to form a group of nodes to conduct voting. It is a random selection that allows you to ensure network security.
Cardano Computation Layer (CCL) is a set of protocols built-in layers separating the accounting of value from complex computation and address the need of regulators within the scope of several immutable properties. It is separate from the settlement layer, creating less congestion in the layer when a transaction occurs.
KYC and AML checks are done for both cryptosystems off-chain. With Know-Your-Customer checks, users find it safer to engage in the crypto-environment and trade with other participants. Anti-money laundering assures the users that the platform is not used for malicious intent.
BNS is a distributed intelligence integrated into a network with special privileges that allow it to play the role of an impartial decentralized superuser. BNS adapts and learns to make better decisions because neurons respond to stimuli and feedback.
Cardano Settlement Layer (CSL) is the part of the Cardano ecosystem that is focused on the distributed ledger aspect of the project. The settlement layer is the layer in which value is transacted – focus on increasing effective throughput, not just TPS. They do this by working optimizations into all parts of their stack, including their protocol and their consensus layers.