Compared to the rest, Cardano is a relatively new project launched on the market. Cardano was launched in 2017, giving it ample time to identify the shortcomings of other cryptocurrency projects. So, when it got released, it already had some improvement over the rest, both in its blockchain and its native token, ADA.
This is why Cardano is often described as a third-generation cryptocurrency that aims to be more scalable and sustainable compared to what the rest offer. Currently, Cardano has taken center stage and managed to capture the attention of numerous individuals worldwide.
This also has a significant impact on ADA, and upon examining the ADA price prediction, we can see that this digital coin is expected to have a promising trajectory in the years to come.
However, to truly have a great experience with a particular cryptocurrency, it is essential to be aware of certain aspects that can impact your experience. This is precisely what we will explore in this article, so please continue reading to learn more.
Cardano is a more energy-efficient solution
Compared to other crypto projects, Cardano is a more energy-efficient solution. This is a significant advantage, especially since we live in a world that is suffering from climate change.
Therefore, finding more energy-efficient alternatives is always a great solution, allowing us to reduce our carbon footprint. The creators of Cardano have recognized this fact, which is why they designed Cardano to be more energy-efficient than other cryptocurrencies.
Cardano uses only six gigawatt-hours, compared with Ethereum (50 terawatt-hours) and Bitcoin (130 terawatt-hours). A terawatt is approximately 1,000 gigawatts, so there is a significant difference, where Cardano has the upper hand in terms of sustainability.
Compared with Bitcoin, Cardano uses a Proof-of-Stake (PoS) consensus mechanism to validate transactions. This solution proved to be more energy-efficient, as users don’t need to spend many hours solving complex mathematical problems.
Instead, in a PoS, users only need to stake some digital currencies, which also limits the number of devices required to validate transactions, making it a more sustainable solution.
Cardano has great scalability
Another significant advantage of Cardano is its exceptional scalability. Scalability has been a challenge for other cryptocurrency projects, so Cardano has sought the best ways to deliver improved solutions.
Both Ethereum and Bitcoin have faced scalability issues, as Ethereum can only process approximately 15 transactions per second, while Bitcoin handles around five transactions per second. The consequences of this resulted in high fees that accompanied slow transactions.
However, Cardano didn’t want to have the same experience, which is why it added technologies like the Hydra scaling solution. This approach could enable Cardano to handle around 1 million transactions per second, which would be a significant advantage.
Cardano has real-world utility
Another significant advantage of Cardano is that it leverages real-world utility, allowing its services to be integrated across multiple industries.
For instance, it can be utilized in finance, healthcare, or agriculture. For example, in healthcare, Cardano could verify all pharmaceutical products, reducing the risk of dealing with counterfeit medications.
It is remarkable to see that Cardano can be truly integrated into so many real-world utility scenarios. Additionally, Cardano can revolutionize certain government operations and help them address their shortcomings.
Cardano has also begun to be integrated into the governments of several countries around the world, including the Ethiopian government.
The goals of this partnership are to enable the Ethiopian Ministry of Education to offer computerized IDs to undergraduates. The primary advantage of this approach is having a sealed academic record.
Cardano has a limited number of ADA tokens
Cardano has a maximum supply of 45 billion ADA. This limited amount can create scarcity, which, in turn, can lead to increased prices.
People want to own something that they won’t be able to purchase in the future, which is why some cryptocurrencies decide to set up a limited supply.
Another cryptocurrency project that has adopted this approach is Bitcoin, with a maximum supply of only 21 million BTC. By examining the market capitalization of Bitcoin, we can see that this approach has significantly increased its popularity.
Cardano was launched after going through extensive research
Cardano is a cryptocurrency project that was launched after undergoing extensive research. This is why it had sufficient time to explore the best solutions that could address all the shortcomings associated with the rest of the digital coins. In the creation of Cardano, individuals with extensive experience participated.
They specialized in both cryptography and blockchain technology, playing a vital role in the development of the Cardano blockchain that we benefit from today.
With this approach, Cardano had more time to bring improved solutions to the world and address some of the challenges faced by other crypto projects.
One of the co-founders of Ethereum is the founder of Cardano
Charles Hoskinson conceived the idea of Cardano. However, not everyone knows that before the Cardano story, this individual played a significant role in the creation of Ethereum, serving as one of its co-founders.
And because he identified some factors that limited its functionality, it looked for solutions to these problems and came up with the idea of Cardano, after parting ways with Ethereum.
Conclusion
Although Cardano is a relatively new project compared to the others, it has still managed to offer essential solutions that have put both this digital coin and cryptocurrency into the spotlight.
Cardano is a third-generation blockchain that is versatile and seeks solutions through its academic research. As a result, it utilizes advanced and robust security, which enhances its operations.
Additionally, Cardano successfully addressed the scalability, interoperability, and sustainability issues that other projects have faced.
ADA also managed to represent one of the most important digital coins, especially because it offers improved solutions that provide it a competitive advantage. So, we can only hope that Cardano will have a bright future.
