Cardano (ADA) is often described as a cryptocurrency of the third generation. It employs blockchain technology, as did Bitcoin (BTC), the world’s first digital currency. However, Bitcoin is faster, more scalable, and uses less energy.
Here are some interesting facts about Cardano:
Cardano’s Token Was Created in Honor of the World’s First Computer Programmer
Cardano’s creators are obsessed with names. So each stage of the platform’s evolution is named after a well-known poet, writer, or computer scientist.
Cardano’s native token, ADA, is named after Ada Lovelace, Lord Byron’s daughter and a 19th-century mathematician. Many people believe Lovelace’s ideas laid the groundwork for modern computing.
It Consumes a Fraction of the Energy Required by Ethereum or Bitcoin
The energy consumption of Bitcoin and Ethereum (ETH) has recently come under scrutiny after Elon Musk stated that Tesla would suspend Bitcoin purchases due to environmental concerns.
Every year, Bitcoin consumes roughly the same energy as the Netherlands. The consumption of Ethereum is less than half that of Bitcoin, but it is still the equivalent of a smaller country like Portugal.
On the other hand, Cardano is a green cryptocurrency that uses about the same energy as 600 US homes each year. Ethereum is working on an upgrade that will reduce its consumption by 99.95%. However, Cardano’s environmental credentials have been built in from the start.
Cardano Is Collaborating With African Governments
There are numerous ways in which blockchain could have an impact on people’s lives. One of Cardano’s founding principles was to address real-world issues like economic accessibility.
For several years, it has had a team based in Ethiopia, traveling and building relationships with governments and ministries across the continent. One of its most significant projects is its recent flagship agreement with the Ethiopian Ministry of Education.
This collaboration uses the Cardano platform to generate digital IDs for 5 million students. It will provide each student with a secure and tamper-proof academic record that will follow them for the rest of their lives. In addition, that ID will help them prove their academic credentials as they enter the workforce or college.
Cardano and the Hydra With Many Heads
It’s difficult to talk about cryptocurrency without getting too technical. Cardano tracks transactions and stores data using a layered blockchain. Blockchain ledgers are sophisticated databases made up of interconnected blocks.
Because of its layers, Cardano can process transactions faster than many other cryptocurrencies. In fact, it will be faster than Visa’s 65,000 transactions per second processing capabilities (TPS).
Cardano has a Hydra layer that sits on top of the existing blockchain. It’s similar to the grocery store’s express checkout. The basic blockchain handles people who come in to do their big monthly shop, while Hydra handles quick shops of 10 items or less.
Each express checkout till functions similarly to a processing pool known as a Hydra head. Each head is capable of processing up to 1,000 TPS. So 1,000 Hydra heads could process one million TPS.
Unlike the mythological monster, shutting down one head does not result in spawning two more. Each user who connects to the network, however, generates ten heads. As a result, the more people use the network, the more processing power it has.
Cardano Has Been Among the Top Ten Cryptocurrencies Since Its Inception
Charles Hoskinson founded Cardano after co-founding Ethereum but left due to disagreements over how it should be run.
Hoskinson (a crypto superstar) was determined to do things differently from the beginning. As the experts built this new blockchain from the ground up, each step of the platform’s development was peer-reviewed.
That is why, since its inception in 2015, ADA has consistently ranked among the top ten coins in market capitalization.
Is Cardano Worth Investing On
Before you go out and spend all of your money on Cardano, keep in mind that it still has a long way to go.
Ethereum, for example, already has smart contracts in place, while Cardano hopes to launch them later this year.
Smart contracts are self-executing pieces of code that allow users to specify payment conditions. So, for example, if you give me a copy of your e-book, I’ll pay you 5 ADA. They are at the heart of many blockchain applications, which is why around 2,800 applications already use Ethereum’s network. According to State of the DApps, that accounts for roughly 80% of the app market.
All cryptocurrencies are in their early stages, and it can be difficult for investors to separate hype from substance. Cardano took a slow and steady approach, resulting in a very solid platform but missing out on the first-mover advantage. It plans to launch smart contract capability later this year, which will significantly test its technology.