Cardano is a new Blockchain that was created as a technological platform and designed to run financial applications that are used by people, governments, and organizations, on a daily basis. The idea was to provide a platform on a global scale to facilitate day to day financial interactions.
History and Performance of Cardano
The Cardano foundation was created in 2015 by a development firm called IOHK led by Charles Hoskinson, the former CEO of Ethereum, to focus on changing how cryptocurrencies are built and designed. As for the performance of the Cardano network, it can handle about 257 transactions per second which is quite an impressive number for any Blockchain.
What Makes the Cardano Blockchain Unique?
According to one of Cardano’s online forums, the Cardano platform was created in layers so that the system would feature the flexibility required for easy maintenance and also facilitate upgrades through soft forks. One of the layers is designed to deal with smart contracts. For those not familiar with the latter, it refers to digital agreements that are designed to support businesses and commerce in the future. The Cardano platform is also designed to handle decentralized applications that run on Blockchain technology.
The Cardano Cryptocurrency (ADA)
Other than smart contracts and decentralized applications, the Cardano Blockchain also plays an essential role as the platform through which the Cardano cryptocurrency is operated. The digital coin is abbreviated as ADA, and it is currently a top-ranked coin.
Transaction Costs and Mining
Transaction costs are incurred in Cardano’s settlement layer to provide compensation for the resources that are spent to run the Cardano SL protocol. Cardano SL transaction fees are thus the only source of payment for those who play a part in the protocol. The Ouroboros Proof-of-Stake (PoS) algorithm plays a crucial role in the mining of Cardano. PoS is an alternative method of showing the amount of work done when solving ADA transactions. It is considered a better alternative to the Proof-of-Work process which is used by Bitcoin’s Blockchain though PoW is considered inefficient because it uses up a lot of electricity.
The Future of Cardano
As usual, predicting the future of a cryptocurrency is tricky business. Most digital coins that are currently performing well demonstrate some key characteristics. For example, some have Blockchains that focus on critical aspects of various markets such as financial security or privacy. Such characteristics allow investors to be more confident when investing in a particular cryptocurrency. This is because those characteristics highlight how committed the developers are towards making sure that their asset thrives.
In the case of Cardano, the fact that the Blockchain has numerous layers focusing on different applications, such as smart contracts and decentralized apps, makes the system very appealing. As a result, there is a high likelihood that the cryptocurrency will perform quite well in the future since a robust Blockchain backs it. The current position of the coin in the cryptocurrency market is also a testament to the fact that it is a serious player with significant volumes being traded on a daily basis.