As the cryptocurrency world continues to expand, current problems faced by participating projects needs to be addressed for the benefit of all. Cardano (ADA) which is a crypto project directed at improving existing blockchain has offered to fix problems identified in Bitcoin (BTC) and Ethereum Classic (ETC).
Decentralized Cryptos Need More Attention
Improvement is an ongoing venture in the crypto world especially with those projects that are decentralized. Paramount among such projects are Ethereum and Bitcoin. Developers keep seeking ways of making these cryptos perfect as that is the only way everyone can enjoy it.
Initially when cryptocurrency first started, the paramount thing there was to direct effort at improving Bitcoin which was the original blockchain. However, these days many new cryptocurrencies have emerged to challenge Bitcoin and others. Each of the blockchains has their different aims.
Among the other cryptos that were developed aside from Bitcoin is Cardano. Developers came up with this project to put in place previous ones. The mission of its developers is to identify problems associated with mainstream cryptos such as Bitcoin and Ethereum and then fix them.
The knowledge of the mission of Cardano is something market participants and investors must seek to understand. This would help the players understand how Cardano project can change how the crypto community looks completely. As such, investors wanting to dive into cryptocurrency would have to continue to study Cardano.
A Phenomenal Start
Interestingly, a paramount co-founder of Ethereum crypto was the brain behind the Cardano project. The genesis of the project can be traced to the philosophical issue that Charles Hoskinson had with Proof-of-Work (PoW). PoW is among the renowned methods applied in the cryptocurrency world for verification. This verification is necessary for blockchain to function properly.
With Proof-of-Work, mining blocks are the process by which consensus is arrived at. Howbeit, it takes a lot of computing and energy to achieve the mining thing. As such, Hoskinson has always maintained that this Proof-of-Work approach is quite cumbersome and problematic. To him, the difficulty does not even amount to efficiency as he would have expected.
Many other voices joined with him to frown at the Proof-of-Work system arguing that it takes a lot of energy. They equally argued that the system was inaccessible to a large degree to the entire cryptocurrency community.
In view of the above-recognized problem of PoW, Proof-of-Stake became a ready alternative. This system ensures that a reduced amount of energy is consumed. That aside, many view it as being more secure and effective in generating consensus and verifying transactions.
Proof-of-Stake gives consumers the opportunity to exchange or should we say “stake” cryptocurrencies for some powers used for the mining and verification process.
New and Innovative Smart Contracts
In addition to replacing PoW with PoS, Cardano system equally came up with a new DSL language that is specific to the Cardano domain alone. This new language was crafted solely for financial contracts execution. This is one essential process in today’s blockchain technological circle. Credit, however, has to be given to Ethereum blockchain for being the first to broker smart contracts.
With daily advancements in the crypto technological sphere, Cardano eventually came up with their own unique verification system for smart contracts. Cardano views smart contracts as being very important to blockchain as it allows networks to transact without a third-party verification.