Cardano is a cryptocurrency that uses a proof of stake system which burns energy more efficiently than other cryptocurrencies that use proof of work systems. Cardano is leveraging itself to be a direct competitor of Ethereum which leads the crypto market as the top blockchain to use for smart contracts. Cardano has a loyal community of holders of the coin who believe in the mission of Cardano to create a decentralized network that uses technology which will ignite a positive change in the world.Cardano’s proof of stake system also adds an incentive to Cardano holders with its proof of stake system that rewards its community with interest on their tokens when they agree to stake them, bringing what I would call stability and decreasing volatility to its token. Also the cost of using Cardano Tokens on the blockchain is much much more cost efficient in comparison to Ethereum’s transaction fee which is around $4.42 cent as I am writing this and has been as high as $60 in the past. In contrast Cardano averages about $0.27 per transaction fee, which is drastically lower than its competitor. (Gas refers to the computational efforts required to execute specific operations on the Ethereum network.)
CARDANO’S SMART CONTRACT SYSTEM
As of recently the long awaited hard Alonzo white hard fork has been finished. This allows developers to use smart contracts on Cardano’s blockchain to create decentralized finance (Defi) , Non-Fungible Tokens (N.F.T’s) , and decentralized identity (D.I.D). This addition of technology by Cardano’s positions it to assist in the solution of high energy usage and waste among many of the current blockchains that are leading the market and it frees up developers to innovate and cross off the current unwritten social mandate to reduce carbon emissions and utilize energy more efficiently.
CARDANO’S PARTNERSHIPS TO WATCH
Cardano has partnered with Nervous, a Chinese public blockchain employing a strategy known as a bridge. As of May 2021 China has placed a ban on business institutions and payment companies from providing services related to cryptocurrency transactions. China is the source of the world’s cryptocurrency trade. It accounts for 80% of Bitcoin’s global operations. Therefore Cardano’s partnership with Nervous could make Cardano the number one cryptocurrency in the world due to this obvious strategy to enter into China’s economy legally in compliance with their laws. The purpose of the partnership technology wise is the operation of a cross chain bridge to connect the Cardano and Nervous networks, interconnecting two ecosystems worth billions of dollars. This allows users to have a seamless experience when using the network irrespective of whichever cryptocurrency they’re using and it allows developers from both blockchains to access services and features aimed at expanding their decentralized applications and their users base. All of these things are made possible by Cardano’s and Nervous Token wrapping technology which beats down the complexity, cost and inefficiency of maintenance of specific smart contract logistics in the implementation of towns. Furthermore the Token will take out the need for a custom made piece of code to be written eliminating the tendency of human error of whatever sort, preventing huge losses. An example of this happened in 2017 when software bugs led to the loss of $300 million of ethereum. This in my eyes positions Cardano to be among the long standing cryptocurrencies of the future.