Good day to all.
Let's talk about the third cryptocurrency today.
The Cardano cryptocurrency is described as a third-generation currency. Like Bitcoin, the world's first digital currency, it uses blockchain technology. However, it is faster, scales better, and uses less energy than Bitcoin.
What is Cardano?
Cardano (aka ADA) utilizes a unique technology called a Proof-of-Stake algorithm to make sure everyone uses the network equally. In other words, you have to stake (i.e., have your money spend the money on the network) in order to win. Otherwise, your money is not spent on the network. Thus, this unique approach provides a simple and efficient method to reach its potential, especially in the world of finance. In 2016, the Cardano foundation raised more than $200 million to develop a global financial system that will use ADA. The goal of ADA is to help people to simplify their lives and find opportunities in their pockets. Why should people use Cardano? The first question people usually ask when they hear about ADA is 'why?
How does it work?
Here's a simplified explanation of how it works: Cardano is based on the "oracle" consensus algorithm, which allows the network to determine the truth with few restrictions. Oracles can read the data in a distributed database and provide the answer to questions that haven't been answered yet. The result is that users who agree on the truth have more influence on the system than those who don't agree. The Cardano Network uses algorithms in a similar way to a proof-of-stake algorithm. Stakeholders vote to determine which transactions go through. Stakeholders choose which transactions they want to see succeed and those they want to see fail, effectively voting for their favorite cards or coins. Why should I care?
Why the world needs Cardano
The Cardano project was born out of the failed project of Ethereum. This was a successful blockchain-based cryptocurrency project which saw a massive increase in value in 2017. However, the cryptocurrency didn't provide an open and democratic governance system. The project was disbanded and the team shifted its focus to Cardano. The creator of Cardano, Charles Hoskinson, was also the former CEO of Ethereum. Why is Cardano different? Hoskinson has provided an open-source governance system for Cardano, which is different from the closed and private systems on other blockchains. Hoskinson has also stated that it is built from scratch on top of a new computational foundation, which would help make Cardano faster, secure, and more scalable. It has also been tested by enterprises.
History of Cardano
Cardano was first released in July 2015. The currency was a part of an initial coin offering (ICO). Since then, the Cardano project has grown, and they now have their own development team. They've also made some key hires. The biggest name? Durga Malladi. He is the founder of Cardano Global Insurance Exchange. He is a seasoned insurance entrepreneur and he is responsible for the creation of an ICO insurance product. Another Cardano addition is Intellisys and its team of data scientists. The team is working on developing data science and engineering capabilities. Heating up the Blockchain Market the attention that Cardano has gained in the cryptocurrency market is because it is an impressive project that will change the way people engage with blockchain technology.
Conclusion
From the standpoint of a simple retail investor, choosing between Bitcoin and Cardano may be a matter of speculation. Both coins have big-name backers, and I don't see either falling in price as the cryptocurrency bubble bursts. One thing is for sure: The reason you invest in Bitcoin or Cardano is that you have faith that you can make money. On the other hand, you would probably invest in a basket of cryptocurrencies like Litecoin or Ethereum because you believe these are among the next big players in the cryptocurrency world.
That's all for now.
See you in another post. Have a nice day.
