Cardano is one of the most popular cryptocurrencies today. It is among the top ten cryptocurrencies in terms of market value. This can make anyone intrigued to learn more about this famous coin. Find out everything you need to know about Cardano.
What is Cardano?
Charles Hoskinson founded Cardano in 2015. He was the co-founder of Ethereum and went on to create his own coin that would solve some of the issues presented by Ethereum. Cardano started trading publicly in 2017 and runs on blockchain technology.
Cardano allows users the ability to create and run their own crypto projects on Cardano’s blockchain. This can save users the time and money they would’ve otherwise spent trying to create a blockchain from scratch. Cardano is certainly revolutionizing the crypto industry.
Important Facts About Cardano
Cardano was created to solve problems that existed in existing blockchains like Bitcoin and Ethereum. It has a couple of central facts due to which investors are interested in this new technology. Here are some important facts about Cardano:
1 – Decentralized
Like other popular cryptocurrencies, Cardano takes pride in providing users with a safe and secure decentralized platform. Users no longer have to rely on unsafe centralizing banking solutions in order to perform necessary transactions privately and securely.
2 – Proof of Stake
Unlike Bitcoin which works on a Proof of Work mechanism, Cardano is underpinned by an alternative mechanism called Proof of Stake. This involves having users commit or stake their ADA coins on the blockchain in order to validate the transactions that take place on it.
3 – ADA Inspiration
Cardano’s coin ADA was inspired by Ada Lovelace, who was the world’s first computer programmer. The smallest unit of ADA or 0.000001 ADA is also called a lovelace. This inspiration is what has touched the hearts of many and created a special bond with this coin.
Benefits of Cardano
Cardano is considered to be an upgraded version of both the Bitcoin and Ethereum platforms. This is because it provides a number of benefits not available on those platforms. Some important benefits provided by Cardano include:
1 – Sustainable Solution
Cardano was built in a way to solve the high-power consumption problem found with other blockchains like Bitcoin. Cardano is one of the most environmentally friendly crypto platforms, and it is believed to be 1.6 million times more efficient than Bitcoin.
2 – Faster Transactions
One of the biggest problems faced by users of Bitcoin and Ethereum is that the transactions are processed at a very slow rate. This is about 4.6 TPS for Bitcoin and about 30 TPS for Ethereum. In comparison, Cardano allows users a speed of about 250 TPS which is significantly faster.
3 – Open Source Project
Cardano is an open-source project. This means that it is constantly innovating and evolving with the help of its users. Anyone can pitch in to help make Cardano a more efficient and sustainable platform. There is no limit to what Cardano can become.
Should You Invest in Cardano?
One of the greatest things about Cardano is its community. Cardano has a very strong community that has got its back through thick and thin. While there is no doubt that Cardano can become volatile like any other cryptocurrency, it is backed with a lot of research and resources to ensure it always stays at the top. Like with any investment, we recommend that you do your own research first. For more information about cryptocurrencies, visit our blog.
Risk Warning: The information in this article is presented for general information and shall be treated as a marketing communication only. This analysis is not a recommendation to sell or buy any instrument. Investing in financial instruments involves a high degree of risk and may not be suitable for all investors. Trading in financial instruments can result in both an increase and a decrease in capital.
