- Understanding Cardano and the Hype around It
It is important to realize that the world of cryptocurrency is not just limited to Bitcoin and Ethereum. Several other cryptocurrencies have been created in the past few years, having different use cases and features that are even better than Bitcoin and Ethereum. One such cryptocurrency is Cardano which is the sixth-largest virtual currency in the market.
Cardano was developed out of the need to have a better smart contract platform and more standardized and scalable blockchain, than the one used, Ethereum. To achieve this Charles Hoskinson, co-founder of Ethereum, and Jeremy Wood, a worker at Ethereum joined hands to build what is known as Cardano.
The control and operations of the Cardano blockchain are the responsibility of the Cardano Foundation. It acts as a non-profit custodial entity for the whole project to help market and also ensures the safety of the blockchain.
Understanding Cardano and the Hype around It
What distinguishes Cardano from other blockchains is its distinct multi-layer design and the consensus mechanism which comprises mathematical concepts. Many believe that Cardano is the next generation of cryptocurrency solutions.
Cardano (ADA) is like all other digital tokens. Similar to Ethereum, the Cardano blockchain can be used to generate smart contracts, which can be used to develop protocols and decentralized apps.
Cardano claims to be the blockchain of third-generation by addressing the issues of scalability and some other issues that are there in Ethereum and Bitcoin networks. Instead of developing solutions on existing technologies, Cardano created a new blockchain from the beginning.
The consensus mechanism used by the Cardano is Ouroboros, which is a Proof-of-Stake (PoS) based blockchain ecosystem. This consensus mechanism ensures the safety of the Cardano network at all times. Token holders in ADA are rewarded for staking their holdings to the network and contributing to network consensus.
African countries have been at the forefront in adopting financial technologies. Earlier this year Ethiopian government formed a collaboration with Cardano, to develop a blockchain-based system. This system will help in tracking the performance of the students in local schools and will assist in further studies. This deal is being claimed to be the biggest blockchain deal in history.
Cardano has already started to work on the system for the student in Ethiopia. It has even opened an office in Addis Ababa, the capital city of Ethiopia.
Cardano has also collaborated with the World Mobile Group, to deliver sustainable internet services to Ethiopia and Tanzania. Renewable energy is being used to achieve the objectives of this project.
If Cardano can succeed in Africa, its potential will be limitless. In the future, it is expected that the number of users of Cardano is going to increase significantly.
When looking at the bigger picture, all the hype surrounding Cardano is justifiable. The project has a lot of potentials and has many use cases.
Disclaimer: The article is just to provide information and shouldn’t be considered as any financial advice. It is advisable to conduct thorough research before investing in any cryptocurrency.
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