How  Cardano is designed to sustain

People’s confidence in a particular project’s ability to last for an extended period of time, if not indefinitely, is the foundation of digital scarcity. A stable business model is essential for long-term success. In order for the model to be stable, it must be dependent on events occurring in the actual world. Let’s look at the lifespan and durability of Cardano network and Etherium from the standpoint of endurance and longevity.Cardanois an updated system of etherium.

Fees for transactions

After a few years transaction fees will overtake other sources of revenue as the primary source of income. It may be said that if individuals do not make use of a network, then budget will be small and the network’s continued existence will be in doubt.

There will be two ways to gather a given quantity of money:

Due to the possibility that individuals may not be ready to pay large costs.

 The second alternative is unquestionably preferable. People will not be willing to pay any more after a certain point. What is the absolute greatest amount of transaction fees that consumers are prepared to pay? We don’t know. There is evidence that individuals stopped paying fees in the ethereum ecosystem after the amount hit 200 USD. Electricity for a family home in Europe costs more than 200 USD each month, which is more than monthly cost of living of many house holds.

The frequency at which the blocks are produced is determined by the block-time. In the ethereum network, it takes about 10 minutes, while being in the context of Cardano, it takes approximately 20 seconds. We can determine the number of transactions that can be handled per second based on these factors. Ethereum can handle seven transactions per second, while Cardano can process 300 transactions per second. We should also consider the possibility that the blocks may not always be completely filled.

When economic policy and transaction costs are combined, the result is

Both the economic  policy and the collecting of transaction fees were addressed separately at the meeting. The budget, on the other hand, is made up of both components. The daily budget will be affected by the cost of coin, the quantity of coins which a network distributes as an incentive, and the amount of fees collected. The only way to guarantee an adequate budget is via the gathering of transaction fees.