What is Cardano?
Updated: Sep 14
Cardano is the third-largest cryptocurrency by market cap. The open-source blockchain network is flexible, sustainable, and scalable for smart contracts.
It is used to develop a variety of decentralized financial applications, new crypto tokens, games, and much more.
According to many industry experts, it is the next-generation evolution of Ethereum but more flexible and sustainable than Ethereum and Bitcoin.
That’s the reason for its immense popularity among the users.
Furthermore, like the Ethereum blockchain’s digital currency is ETH, Cardano’s native cryptocurrency is known as ADA. Investors can trade the ADA through cryptocurrency exchanges such as Coinbase and many more.
Today, more investors are using ADA to store value, enhance their investment portfolio, send and receive payments, staking and submitting transaction charges on the Cardano network.
A brief history of Cardano
Cardano first came into the picture back in September 2015.
Cardano’s creator was Ethereum’s co-founder Charles Hoskinson.
Cardano was created with the aim to be a third-generation blockchain or blockchain 3.0.
Cardano’s goal is to become a scalable and energy-efficient smart contract platform.
How does Cardano work?
Cardano’s aim is to become the most sustainable blockchain network. It has a special proof-of-stake consensus mechanism known as Ouroboros, and that’s something exclusive that you will not find in others.
When compared to the energy-intensive proof-of-work network presently used by Bitcoin and Ethereum, Cardano is advanced and more sustainable.
Hwoever, Ethereum is also planning to move on this proof-of-stake system via the ETH 2.0 upgrade. Although when this will happen is still open to interpretation at present.
What is proof of work?
Decentralized cryptocurrency platforms need to ensure that everyone’s money remains safe and no one spends the money twice without any central body such as Visa or PayPal. To achieve this goal, the network uses a “consensus mechanism.”
The original and the first crypto consensus mechanism is known as proof of work made popular by Bitcoin mining.
Reason for Sudden Rise:
Cardano was not that popular cryptocurrency a few months ago. Suddenly it has become the third-largest on the market by market cap. This is because most investors and blockchain enthusiasts prefer green and environmentally-friendly options.
If you consider the environmental effects of crypto on the world, Cardano has the upper hand over both Bitcoin and Ethereum.
Cardano’s prices rise by 36% in the last week of August 2021, while its market cap stands at around $90.60 billion.
Furthermore, the sudden rise in Cardano’s prices came after the network announced the most significant upgrade known as Alonzo. However, the makers plan to launch it in the last quarter of 2021, but it has already made its mark on the market.
Cardano In Japan
Another reason for this sudden rise in its price is that the company plans to launch its coin ADA on Japan’s exchange after necessary approval.
This also means that Cardano’s ADA will join and directly compete with the elite cryptocurrencies such as Bitcoin and Ethereum in Japan. Keep in mind that the Japanese market is one of the toughest for all currencies.
Our fund invests in Cardano as we see it as a great Layer 1 solution for DeFi projects as the smart contract solution on offer matures.
You can invest in our DeFi Infrastructure fund via ICONOMI.