Cardano: The New Player in the Cryptocurrency Market
Key Takeaways
- Cardano is considered to be the third-generation platform, embracing sustainably and ensuring scalability.
- Since the platform uses a proof of stake mechanism, it acts as a more secure and reliable option.
- It is becoming the most preferred cryptocurrency due to its governance and smart contracts.
- The respective platform is also known as Ethereum Killer as it overcomes all the issues of Ethereum.
The use of blockchain technology is now not limited to just cryptocurrency transactions but is being used as a way of storing and in other fields of finance such as supply chain and food safety. In fact, in 2020, over 8,000 blockchain patents were registered.
Many policies have been introduced for proper regulations, and many forums have been founded to look out for blockchain technology. The Rare Evo blockchain and cryptocurrency convention is one of them, which in 2023 was held from 24 Aug to 26 Aug in the USA.
Several astonishing figures were revealed in this meeting, especially on the upcoming cryptocurrency Cardano by its founder Charles Hoskinson.
In this article, we will try to spill the beans as to why Cardano is seen as the future of the crypto market, and it is expected to surpass Bitcoin and Ethereum.
Why is Cardano in the Headlines?
Hoskinson in the convention that was held recently claimed that the ADA, the digital currency of Cardano, is set to become the “Biggest cryptocurrency in the world”. In fact, he forecasted it to overtake Bitcoin and Ethereum. He said and as I quote “I think it’s going to become the backbone of a new digital nation, a new society”.
However, we should keep in mind that he claimed this while the currency has seen a drastic loss of 15.2% in the past month. On top of that, ADA was observed to be a security by the United States authorities.
Keeping in view these statistics, Hoskinson’s words have gained a lot of attraction, alluring people to look into the intricacies of this digital currency. Hence, Cardano has become the talk of the town.
Do You Know?
Ada is named after Augusta Ada King, Countess of Lovelace, who is also popularly known as the first computer programmer.
The respective currency is regarded as an updated version of Ethereum and is known as a third-generation platform. It is the third-largest entity with a market value of $73 billion.
We will now discuss its major features to analyze why this platform is thriving and is establishing a prominent space among its competitors.
Scalability and Sustainability
As compared to other competitors, it uses a scientific approach to scalability. Its architecture is built on layers that act as a wall between settlement and computational layers. This enables each layer to grow independently while ensuring security.
It leverages an advanced algorithm, Ouroboros, which ensures its scalability. It is based on the proof-of-stake protocol instead of proof-of-work (PoW) which reduces energy consumption as compared to the traditional one. Hence, more environment-friendly.
Due to its decentralised decision-making, stakeholders can actively participate in its development and enhancement. It focuses on good governance through a transparent voting system.
Since it works on Ouroboros, it reduces its carbon footprint as compared to older blockchain platforms, embracing sustainability. Its unique technology allows simultaneous updates without disturbing the underlying network, fostering sustainable practices while the stability of the platform is maintained.
Hence, this blockchain platform is embracing a greener future in the cryptocurrency market.
Smart Contracts
Smart Contracts programs are written in the three languages and are executed when certain criteria are fulfilled. In simple terms, they are digital agreements that are used to track, verify, and execute transactions.
Utilizing smart contracts can significantly reduce costs and increase efficiency and transparency in various sectors. Below are the three languages that it is written in.
Security
The respective cryptocurrency platform has gained popularity due to its multiple layers of protection. Ouroboros protocol adds an extra layer of protection to the networks against attacks.
Basically, two chief factors play a vital role in security.
- Deterministic Wallet: This ensures that the user’s private key is created through a secure algorithm.
- Peer Review Process: This guarantees that the codes generated go through a thorough examination by the experts before their implementation.
Future of Cardano
Although the history of Cardano prices has been like a roller coaster, yet it is seen as a beacon of hope. This next-generation cryptocurrency provides a robust platform that is committed to scalability, sustainability, and transparent governance.
Its cutting-edge approach has made it stand out among the other cryptocurrencies and is considered to revolutionize this industry by embracing a greener, sustainable future.
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