The Cardano platform: a two-layer approach
Cardano is composed of two separate layers that utilize proof-of-stake consensus throughout the system. Division of the network into a Settlement Layer (SL) and Computation Layer (CL) is meant to allow for developers to optimize each one independent of the other, thereby increasing the efficiency, scalability, and flexibility of the network.
1. Settlement layer: the primary purpose of this layer is to account for the value of transactions e.g., this is the currency layer. The Settlement Layer in its completed form will feature:
Support for two sets of scripting languages; one to move value and another to enhance overlay protocol support.
Provide support for KMZ sidechains; a non-interactive means to securely transfer funds to the Computation layer or other supported blockchain protocols.
Support multiple types of signatures, including quantum resistant signatures for optimum security.
Support for numerous user issued assets.
Achieve “true scalability”: as more users join, the capabilities of the system increase.
2. Computation layer: a smart contract computing layer will be built to handle smart contracts. It is comprised of the following elements:
Plutus, a purpose-built smart contract development language and execution platform based on the functional programming language Haskell
Marlowe, allowing financial and business experts with no previous technical knowledge to create smart contracts. Marlowe is a high-level, domain-specific language (DSL) for financial contracts which is built on Plutus.
Marlowe Playground, an easy-to-use application-building platform that non-programmers can use to build financial smart contracts. Together, Marlowe and the Marlowe Playground simplify the process of creating smart contracts for financial applications, allowing subject matter experts to directly contribute without requiring deep programming skills.