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Cardano implements layered architecture, dividing its protocol stack into distinct layers that handle different aspects of the blockchain network. This includes the settlement layer (CSL), responsible for handling value transactions and native token transfers, and the computation layer (CCL), responsible for executing smart contracts and decentralized applications (DApps). By separating concerns and functionalities into modular layers, Cardano achieves scalability, flexibility, and interoperability, allowing for efficient resource management and future protocol upgrades without compromising security or stability.
