Its about first blockchain project with its own crypto It is based on an academic and scientific philosophy, since its development is based on a global and multidisciplinary team, where there are engineers, mathematicians, scientists, and finance and business professionals. All supervised by the Cardano Foundation.
The team’s vision is to reconcile the needs of users with those of regulators, with the expectation of achieving greater financial inclusion to provide open access to any finance service.
Likewise, Cardano will allow the development of smart contracts and decentralized applications known as “dApps”.
The de Cardano blockchain
As mentioned at the beginning, Cardano (ADA) is a multipurpose blockchain called “third generation”, where you can program an infinity of smart contracts (decentralized smart contracts) and that arises as an alternative in the form of development of cryptocurrencies.
This blockchain employs a proof of stake algorithm (POS-Proof of stake) which differs from the algorithm used by Bitcoin, proof of work (POW-Proof of work).
This mining system consists of a protocol that rewards with less difficulty finding new blocks (blockchain) to holders of the ADA coin in order to encourage healthy and organic growth of the network. That is, it makes them part “partners” of the project with a prize for interest and participation in the network.
How Cardano works
This platform employs a new algorithm and consensus called “Ouroboros” (mythical symbol used by different civilizations and by alchemists to represent the infinite cycle of things), a crucial part of the entire infrastructure that makes the ADA cryptocurrency possible.
It also eliminates the need for an energy-hungry Proof of Work, thus demolishing the barrier that prevents any Blockchain from expanding exponentially. This, without a doubt, represents a great innovation in block or chain technology.
In any case, what stands out about the project is that the technology is secure, flexible and above all scalable to be able to support millions of users around the world. Therefore, a considerable number of experts in the field have devoted their full attention to developing this third generation cryptocurrency.
According to specialists, ADA is called to be one of the cryptocurrencies that will once again revolutionize the market and its main goal is to outperform Ethereum.
What is Cardano for and what is its projection
The idea of the project is to convert ADA in a first-class token, surpassing even Bitcoin or Ethereum, by allowing cheap and secure transactions. And, at the same time, have powerful scalable smart contracts.
Cardano’s development roadmap has been very clear and has been successfully completed. The activation of the Goguen, Basho and Voltaire updates on the Cardano network will surely lead to an explosion in their value, so its development until 2022 will be very interesting for the crypto community.
Nowadays, Cardano is found in the Shelley age, activated in June 2020, and by which the network became more decentralized, secure, fast and scalable.
Cardano’s next step is to include smart contracts in its network and this will be achieved with the arrival of Goguen. With this update, you will have the ability to maintain DApps on your network.
Cardano vs. Ethereum
To begin to establish a comparison, you have to review basic aspects of both technologies.
Ethereum was created by a young developer named Vitalik Buterin And it was quite a revolution because it was the first blockchain that allowed its users to create smart contracts. With this subtle difference, Ethereum was capable of more than just Bitcoin’s financial transactions.
The Ethereum network is decentralized, which implies that it cannot be controlled, at least not in a simple way, by a single person or authority. Instead, every transaction made on it is verified by the community itself. Anyone can connect a device to Ethereum to help confirm transactions and as a reward they receive ETH.
Like Ethereum, Cardano is a blockchain project specialized in smart contracts. Created in 2015 by an organization called Input Output Hong Kong (IOHK), it is considered a third generation blockchain while Ethereum is considered second generation.
Charles Hoskinson, founder of Cardano, was also a co-founder of Ethereum, but he thinks he can create a much better blockchain.
Ethereum owns its own cryptocurrency, Ether, and Cardano owns its own too, which is called the ADA. Both can be used to send and receive funds.
The general purpose of Cardano is to find a balance point between serving the needs of users and the regulations.
Among the differences, one of the attributes to consider is the speed with which cryptocurrency is sent. In the case of Ethereum this takes about 16 seconds; In the case of Cardano, the official transaction time varies between 5-7 minutes.
Both blockchains are decentralized. This implies that a centralized third party is not necessary, but this responsibility rests on the consensus algorithm.
In the case of Ethereum’s consensus mechanism, this is called Proof of Work and is the same model as Bitcoin, for now. There are some conditions regarding this algorithm since as more people use the network, more electrical energy is required to confirm transactions.
Cardano uses a variation of Proof of Stake, which he calls “Ouroboros”, a very good model since instead of having miners that solve complex mathematical sums, it uses “forgers” based on a motivation scheme.
Good prospects for cryptocurrencies
In short, since Ethereum was launched in 2015, it has done quite well as the first blockchain focused on smart contract technology, ranking as the second most popular cryptocurrency in the world. It is also responsible for most of the ICO offers, which is the way new blockchain projects are financed. In turn, new dapps are created every day, giving it even more value.
While Cardano has launched its coin at the end of 2017, it has done very well in this time. with future developments that also include building an address with quantum resistance, on-chain voting and off-blockchain payments, projecting to further revolutionize this industry.
The analysis of Cardano (ADA) versus Ethereum (ETH) will remain valid considering that one is an already established cryptocurrency that occupies the second place, while the other is still in development and is already in the top 5 of cryptocurrencies with the highest market capitalization.
Where to buy Cardano (ADA)?
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Cardano: what you need to know about this booming cryptocurrency