Bitcoin is the true patriarch among crypto assets. He maintains his leadership position largely due to his venerable age and general fame. Its closest competitor Ethereum managed to offer investors a fundamentally new and profitable one, namely, smart contracts.
Cardano has taken the best of both systems and is seriously determined to outflank the competition. It consumes significantly less energy than Bitcoin and competes with Ethereum smart contracts.
It is worth noting that he does it well: Cardano has long been nicknamed “the Ethereum killer”. What kind future of Cardano, the potential killer, is real or not – time will tell.
What is Cardano
Cardano is a blockchain platform based on Ouroboros, an innovative proof of ownership protocol. Cryptocurrencies previously introduced into circulation were based on proof of work protocols. The platform has its own ADA token in honor of Ada Lovelace.
Plat was founded by Charles Hoskinson, co-founder of Ethereum. He proposed to take Ethereum into a commercial channel, but the other founders did not support this idea.
Ultimately, Hoskinson created his own project that retained Ethereum’s greatest strengths. At the stage of project development, it was required to solve two problems: to reduce the power consumption of the system and to ensure fast transactions with a minimum commission. ADA’s offer is capped at 45 billion coins, unlike Ethereum, which has no such cap.
ADA is ranked fifth in terms of market capitalization and is now an active community of programmers.
Energy Efficiency And Cardano
The efficiency of the Ouroboros algorithm is about 20,000 times that of the Bitcoin mining system. Based on the algorithm of the algorithm, go to Ethereum, Cardano’s most serious competitor.
The proof-of-standards algorithm bypasses the mining process as the most energy-intensive. User tokens can be thought of as a digital counterpart to stocks. They are used as collateral to keep the system running.
However, many point out that the Proof-of-Stake model does not exclude the possibility of excessive concentration of ownership in the hands of a small number of users. This contradicts the main idea behind the creation of cryptocurrency – its decentralization.
What’s the Future of Cardano
Noting the clear technical advantages Cardano is extremely cautious in forecasting the future. The Ethereum platform was the first to offer users the ability to create smart contracts. The developers had a little more time to integrate, improve and popularize the innovation.
The technical complexity of programming for Cardano may also be a limiting factor in development. Even with clear advantages, it will be difficult to overtake Ethereum in the long run.
However, this does not mean that it is not worth investing in the project. The ADA token has a huge volume and is quoted on the leading cryptocurrency exchanges:
- Coinbase Global
- Kraken
- Gate.io.
You can also buy ADA on the Letsexchange platform.
The ADA price has historically not been stable and this should be taken into account when forming a diversified portfolio. When studying the ADA and OMG coin price predictions, it is important to understand that each cryptocurrency is a high-risk asset. Almost all of them theoretically have a chance of success. However, when and how it is implemented is almost impossible to predict. When deciding to invest in high-risk assets, remember: the responsibility for the decision and its consequences is solely yours.
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