One of the most prominent blockchain technologies of 2021, Cardano is a cryptocurrency with the fifth-largest market cap. It has also created a native coin called ADA, performing well in the crypto markets. As a network, Cardano uses a sidechain system that involves running two blockchains. The first one is called the Cardano settlement layer (CSL), which acts as the central hub for the ADA. It also serves as the payment gateway for the various settlements within the network, which is very secure and easy to implement. The second layer of the Cardano network is called the Cardano computational layer(CCL). It focuses on smart contract technology. However, it also developed a new technology called NIPoPoW to ensure that the sidechain and mainchain are working efficiently. This guide will look into how these technologies work and their contribution to Cardano Settlement Layer and Cardano computation layer. However, let us first dive into how sidechains work to understand Cardano’s non-interactive proof-of-work. What are Sidechains? A sidechain is a system that allows two blockchains to interact seamlessly. Investors can use it to transfer their assets from one blockchain to another. This move will enable them to maintain their value and avoid experiencing volatility. The transaction does not change between one chain and the other. Instead, the token amount is burnt off from the sending chain, and the same amount is created from t...
