February 25, 2021

Why Interoperability & Governance are Important for the Cardano Blockchain in 2021

Why Interoperability Governance are Important for Cardano in 2021

Last year brought about many interesting developments for the Cardano ecosystem, namely the successful implementation of Shelley which provided a path to full decentralization and Cardano ADA staking features for users in the Cardano ecosystem. EMURGO, a founding entity of Cardano blockchain and the developers behind the light wallet Yoroi Wallet, were key to the anticipated transition along with our Cardano ecosystem partners.

With 2021 now in front of us and the upcoming Cardano Mary hard fork scheduled for March 1st bringing native assets and scripting to Cardano, what should Cardano ADA holders be prepared to look forward to as Cardano’s development continues to move full steam ahead?

Led by its founding entities, the Cardano ecosystem has been making important progress on two key innovation themes for users in 2021 with the aim to further Cardano’s overall development.

First, Cardano is set to fulfill its public governance vision that emphasizes democratic and decentralized decision-making to ensure its blockchain sustainability over the long run.

Second is a systems infrastructure that is open not only to integration with other blockchains and legacy systems, but actually pushes the entire blockchain industry forward through scalable interoperability.

Governance: Voice of the Community

Cardano is pioneering the future of community-driven innovation and decision-making. Taking decentralized development to the next level, the spearhead of this development for 2021 is called Project Catalyst.

Project Catalyst – a new experiment into decentralized governance in Cardano that will allow Cardano ADA holders to vote on funding proposals for potential ecosystem projects – is an important step in Cardano’s on-chain governance platform. Voting, registration, and development of new proposals can be accessed through Yoroi and Daedalus wallets. This will allow for the democratic processing of innovation decisions for the community by the community, whereby the users of Cardano possess the power to have a say on decisions.

There are currently over 1500+ registered community members ready to vote, debate, support and participate in these decisions. Based on the numbers, Project Catalyst is quickly establishing itself as one of the biggest and most exciting decentralized public innovation funds in the rapidly developing blockchain industry.

Interoperability: Prepare for a More Interconnected Blockchain Industry

One of the main value propositions of Cardano since its inception has been interoperability. The vision for the future is to provide a decentralized data platform utilizing blockchain technology that is scalable to onboard large amounts of user data, sustainable to keep incentives aligned with a robust Cardano governance structure, and offer efficient interoperability with other blockchains and legacy systems.

To date, one of the biggest factors that the blockchain industry has been trying to address is the zero-sum mentality of many big industry players creating a need for a unifying industry theme.

As the blockchain industry matures, several blockchain projects will co-exist in a dynamic ecosystem to meet the specific demands of many types of applications and users. Existing legacy systems will also need to somehow be a part of the movement towards blockchain-based data infrastructure and an interoperable blockchain platform such as Cardano will be able to meet its needs as well.

Why 2021 is Shaping up to be a Game Changer

Cooperation means everybody wins. The blockchain industry at large continues to see consistent development in many different areas and is eventually headed towards a need for interoperability. At the end of the day, all the ecosystems will be interconnected somehow to work in tandem to bring about the full potential of blockchain-based infrastructure.

As time passes, technology evolves alongside, and the world continues to march towards a digital future. Cardano will be a game changer as we move forward to this world.

If you are looking to implement blockchain solutions to solve complex problems for your enterprise or have an interesting project, please feel free to contact us at info@emurgo.id to assist you. As always, please follow us on Twitter @emurgo_io for the latest news and updates.

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