Are there any limitations or drawbacks of Cardano being an ERC20 token?

3 answers

• Dec 18, 2021 · 3 years ago
  As an ERC20 token, Cardano faces certain limitations and drawbacks. One limitation is that it relies on the Ethereum network for its transactions, which can be slower and more expensive compared to other blockchain networks. Additionally, being an ERC20 token means that Cardano may not be compatible with certain platforms or decentralized applications that are built on different blockchain networks. However, being an ERC20 token also has its advantages, such as easy integration with existing Ethereum wallets and exchanges.
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• Dec 18, 2021 · 3 years ago
  Cardano being an ERC20 token does have some drawbacks. One drawback is that it may face scalability issues due to the limitations of the Ethereum network. This can result in slower transaction speeds and higher fees during periods of high network congestion. Another drawback is that Cardano's smart contract capabilities may be limited compared to native blockchain platforms. However, being an ERC20 token also allows Cardano to benefit from the existing Ethereum ecosystem and infrastructure.
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• Dec 18, 2021 · 3 years ago
  While Cardano is not currently an ERC20 token, it has plans to become one in the future. By becoming an ERC20 token, Cardano will be able to leverage the existing Ethereum network and benefit from its liquidity and ecosystem. This move will also make it easier for Cardano to be listed on various exchanges and integrated into existing wallets. Overall, becoming an ERC20 token can bring numerous advantages to Cardano, although it may also come with certain limitations and drawbacks.
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