The ongoing carbon footprint onslaught of Bitcoin has put green cryptocurrencies into the limelight. Cardano (ADA) is certainly one of the few upcoming cryptocurrencies gaining popularity and acceptance globally. By market capitalization, ADA is fifth and worth about US$41.08 billion as of date. However, sustainability is one of the prime features of ADA. Furthermore, economic independence and accessibility is still a major issue universally as billions of people do not have a bank account and sufficient credit line. Cardano Exchange is a step towards resolving this issue.
The breadth and depth of Cardano is bottomless; the platform is an assortment of protocols thriving on solving real issues. You can use the Cardano platform for multiple use, from stopping sham medicine production to accessing microfinancing. Blockchain platforms have huge potential to make this world a better place.
Proof of stake (PoS) is used in Cardano for transaction verification and to mine new coins in the chain; on the other hand, Bitcoin and Ethereum employ proof of work (PoW) which was original accord in the Blockchain technology. PoS states an individual can mine or authenticate block transactions according to the stake holding of the coin. However, PoW needs enormous energy, and some miners sell their stake to pay utility bills, while PoS gives a miner the authority to mine coins according to the percentage of the crypto holding. This implies a person who owns Cardano can mine it, whereas the proof of work model can deploy any number of computers to mine Bitcoin. So as Bitcoin becomes more valuable more people will start mining it.
Assortment of protocols and technology
Cardano is an assortment of protocols and technology that can be used to digitally store assets like stocks, money, and NFTs. The storing and transactions are done through smart contracts, a program that executes transactions when all predefined conditions of an agreement are fulfilled. The execution is done without intermediaries and a human interface.
Credit score and line depend on the financial background of a person, their bank account, mortgage history. Blockchain technology can be used in developing economies to establish the financial identity and creditworthiness of a user. For instance, Cardano fostered a partnership with the Ethiopian government to register five million students and teachers in Blockchain in a hacked-free environment. This digital register is an authentic certificate of their academic qualification and acceptable documentation to apply to abroad universities and jobs.
The Treasury system ensures sustainability.
Some Altcoin can dry up the reserve as funds are used for initial coin offerings. But Cardona has a different approach to resolve this issue; it has created a treasury system, a small percentage from each transaction is allocated to the reserve. Each development in Cardano is peer-evaluated, tested before it goes into circulation.
Speculative and volatile
Despite the excellent technical and human resources of Cardano, it is early days for cryptocurrency. New crypto comes into the limelight due to celebrity endorsement and then fades away. Cardano has a long way to go; despite an excellent technical base, it has missed the first-mover advantage. Bitcoin and Altcoin have sustainability and scalability issues, and they are adopting smart contracts to address it. All cryptocurrencies are highly volatile and speculative investments; consider all pros and cons before investing.