There is a myriad of blockchain projects available in the market and sometimes it really becomes cumbersome for savvy investors to weigh up all the options to select the worthy one. Cardano has garnered substantial praise in the Crypto Currency community and has captured investors’ traction.
Without any further ado, let’s discuss all the details of Cardano, the process behind it, and what makes it creditworthy for investors.
What is the ?
Cardano deemed as the perfect alternative to Ethereum. Unleashing the power of the scientific approach, Cardano is designed as the first peer-reviewed protocol. The goal behind the development of this platform is to create a blockchain platform that can process more transactions than the traditional crypto assets at a very reasonable price. To prevent it from the potential threat of data breach and other malicious activities, it is equipped with distributive ledger technology and smart contract infrastructure.
Harnessing the full potential of the Cardano blockchain platform, you can create smart contracts, create decentralized applications and protocols, and can send or receive funds at a very low price. Like with many other crypto tokens, the Cardano token is used as a transfer of value. What sets it apart from other crypto coins is its functionality.
To ensure the security of an underlying protocol behind Cardano, stake pool operators can utilize their Cardano tokens for the staking system. The most enticing aspect of Cardano is that active users are incentivized with Cardano coins for participating in the safety provision.
Cardano holders can take part in the development of the protocol via using their coins to vote on any change in the protocol. On the other hand, developers used their Cardano holdings to support the smart contract that is solely based on the Cardana-based blockchain.
Since Cardano is a platform designed specifically for smart contracts, you can expect the highest level of safety and security in it mainly due to its unique two-level security’s. An underlying protocol behind Cardano Settlement Layer (CSL)
“the CSL acts as the ledger of account or balance ledger. This is an idea created as an improvement of bitcoin blockchain. It uses a proof-of-stake consensus algorithm to generate new blocks and confirm transactions.”
Also here Cardano second security
“Cardano Computation Layer (CCL) the CCL contains the data how values are transferred. Since the computation layer is not connected from balance ledger, users of the CCL can create customized rules when evaluating transactions.
all the transactions in no time at a low price.”
Apart from that, the Cardano settlement layer is the same protocol that paves the way for smart contracts. Unleashing the power of this protocol, developers can create dApps, ensure security, and modify the platform for their end-users.
Proof of Stake Consensus Algorithm
All the traditional crypto coins like Bitcoin and Ethereum solely relies on the Proof of Work consensus algorithm that is both energy and capital intensive. Contrary to that, the underlying protocol behind the Cardano Proof Of Stake process that consumes relatively less energy and is cost-effective.
The main impediment in the widespread adoption of Bitcoin and Ethereum is they can handle very transactions per second. Cardano developers identify this burning issue and they resolve this problem by implementing the Ouroboros protocol that was built at the top of Proof of stake.
Eventually, the problem of few transactions per second is resolved completely and everybody who participates on the staking platform is likely to receive the staking reward.
Other appealing features that come with the Ouroboros protocol is the separation of layer, mathematical security in choosing blockchain validators, a secure and well-organized voting mechanism for all the Cardano token holders, and an overwhelmingly scalable consensus mechanism.
The most significant market capitalization coupled with the highest daily trading volume demonstrates Cardano has gained substantial traction amongst crypto aficionados.
Even though its price drops a little bit recently, but the project four years history depicts Cardano price to remains stable.