June 3, 2021

Cardano an Emerging POS Coin as Elon Expected - All you Need to Know

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Check this article which speaks about the recently evolving POS coins, especially CARDANO ( ADA), and its lowest energy consumption that can really save the planet and the cryptocurrency from exploiting innumerable amounts of energy. 

It all started with the opinion of Elon Musk. Yes, It is no wonder that he is endorsing electric cars, but we do have a doubt whether he had an “actual” concern over the environment unless his support over the energy spent to mine bitcoin and other cryptocurrencies. His tweet on May 21, had really turned up the cards for all those cryptocurrencies who are using lots and lots of energy that the alternative energy called “renewable energy” may not help.

This blog speaks about the recently evolving POS coins, especially CARDANO ( ADA), and its lowest energy consumption that can really save the planet and the cryptocurrency from exploiting innumerable amounts of energy. 

About Cardano

Cardano ( ADA) is a digital cryptocurrency named after a great 19th Century Mathematician Ada Lovelace, who is known to be the first computer programmer in the world. ADA is a decentralized cryptocurrency with a separate blockchain. They allow secure exchange of coins without the interference of the third parties with each and every transaction stored and maintained in the Cardano blockchain and a Cardano smart contract. 

If you are an ADA holder, you can stake the ADA coins in the Cardano Wallet. You can delegate your wallet with your Cardano coins and earn rewards and offers. Cardano also releases products for identity management and tracing the product. The products include Atala Prism, Atala Scan, and Atala Trace. The first product is an identity management tool whereas the remaining two are the product specification tool that helps you to track the supply chain.

Cardano - A POS Coin

Cardano is a type of cryptocurrency that uses Ouroboros - a Proof of Stake algorithm that is used to block and validate the transactions happening in the Cardano blockchain. Let us see how this Ouroboros works that makes Cardano an efficient POS coin.

  1. It segregates the physical time into epochs which are converted into slots as fixed time periods.
  2. Epochs work in a circular fashion. That means - if one ends, another one starts. The epoch can last for nearly 5 hours. 
  3. Each slot has a slot leader chosen by the lottery method. Higher the stake amount of coins, there are better chances of winning this lottery.
  4. This algorithm requires the ADA holders to organize the stake pools and allows the holders to represent some to manage your pool protocol execution that helps the pool up and running by the elected pool holders. 

Cardano - Smart Contract Development

Cardano is creating a smart contract platform that helps the enterprise-level decentralization apps (dapps) to serve as a smart, stable, and secure platform for effective functionality. Cardano provides these apps with an opportunity to run as a stable platform with all the features of the dapp that runs without interference from the third party. The Cardano team has planned to facilitate the project development further by improvising the smart contract development of the Cardano blockchain.

Why POS coin like Cardano in demand now?

It is not a wonder that coins other than the POS ones could need to be mined. That means, for mining bitcoin you would receive economic benefits. Whereas if you mine POS coins through the process of stake pooling, you will be rewarded with new ADA coins which in turn can be redistributed or sold to make profits. That means Stake pooling held the combined stake of various stakeholders in a single entity who is responsible for conducting and processing transactions and various stakeholders.

Two, it is the environment. We all know that mining POW coins like Bitcoin would attract a huge amount of energy that has the possible way to deteriorate the environment. But Cardano does not impact the environment in any way as it revolves around staking and pooling and not mining.

Difference between Cardano and Bitcoin

In the past 2 months, the price of Cardano has increased by 33 percent whereas the price of bitcoin has increased only by 22 percent. By this stat, you can know about the significance of Cardano. Now, let us see the difference.

Specifications

Cardano

Bitcoin

Launch Year

2015

2009

Founder

Charles Hoskinson

Satoshi Nakamoto

Consensus Algorithm

POS (Proof of Stake)

POW (Proof of Work)

Block time

20 seconds

10 minutes

Tx confirmation time

20 seconds - 1 minute

10 minutes - 1 hour

Average transaction fee

0.02$

2.50$

Staking Support

Yes

No

Smart contract

Yes

No

Final words

Cardano is satisfying the evolution of an eco-friendly mining process with multiple features. So, this might be the future coin of profit for various investors. Not only Cardano, but all coins with the Proof-of-Stake mechanism will also be more beneficial in the cryptocurrency investment arena in the near future.

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