What is Cardano?
Cardano is an open-source decentralized public blockchain and cryptocurrency project born out of a scientific philosophy and a research-driven approach. Cardano is also developing a smart contract platform that seeks to provide enhanced features for its blockchain so that it can one day become interconnected with mainstream financial institutions.
Cardano is a third-generation cryptocurrency that seeks to solve scaling problems of other currencies such as Bitcoin and Etherium by adding two separate layers to their platform. Cardano Settlement Layer (CSL) ADA, is used for Cardano’s cryptocurrency transactions.
How does Cardano work?
Cardano works on a proof of stake called the Oroboros Consensus Mechanism. Whereas mining at Proof of Work requires much more powerful computers and electricity, which causes a lot of damage to the environment.
Mining in the same proof of stake doesn’t require so much powerful computer or so much electricity; you just have to hold the Cardano coins.
The more coins you have, the more likely you are to dig and this is the reason why lots of people now try to buy Cardano. In the face of this problem of environment, transaction speed, and scalability, Ethereum is also proving to be a stack with Ethereum 2.0.
Cardano’s layer is divided into two parts, Cardano Settlement Layer (CSL) and Cardano Computing Layer (CCL).
All transactions that take place in Cardano, such as the CSL Layer Accounts Book, contain information on all transactions where Ouroboros Consensus Mechanism verifies those transactions.
The same CCL is one of the most important layers that powers the blockchain so that smart contracts can run smoothly in it and at the same time it is responsible for maintaining the security of the chain.
What is Cardano’s goal?
Cardano is called a third-generation cryptocurrency, a first-generation cryptocurrency is called Bitcoin which is limited to transactions only, second-generation cryptocurrency is called Ethereum.
It works on smart contracts, dApps, etc. but it is very slow and very expensive to use. The same third-generation cryptocurrency is called Cardano.
It is used for everything from transactions to smart contracts and is much faster than Bitcoin, Etherium, and anyone can use it very easily. Can
Cardano’s goal is to solve real-life problems, Charles Hoskinson has said many times in his interviews that he wants to change this world with the help of technology and solve problems like environment, education, etc.
He further added that he is not here for profit, he has worked with the Ethiopian government to improve the education system, as well as the banking sector.
There are many more similar projects that Cardano is working on. People have a lot of confidence in Cardano, which is why more than 71% of people hold Cardano.
Most people have a laid-back attitude when it comes to painting a picture about themselves.
Final Thought
Hope you learned a lot about Cardano. What is Cardano? How does it work? What is its future?
Always remember that you should never blindly invest in a cryptocurrency. Always do good research on him, who discovered him, and what he has done so far.
What kind of problem is cryptocurrency working to solve? Read its roadmap and invest in that cryptocurrency when you feel it can be trusted.
