Pros of Cardano Cryptocurrency

The Cardano Foundation, based in Switzerland, manages and regulates the entire blockchain project’s development. Ada is the platform’s native cryptocurrency token. It is now the world’s third-largest cryptocurrency by market capitalization, behind Ether, Ethereum’s native cryptocurrency, and Bitcoin. There are many advantages of Cardano. Let’s look into the pros of cryptocurrency for a better understanding. 

Peer Review and First-Hand Research 

Cardano has a number of advantages, one of which is the emphasis placed on the importance of evidence-based research and peer review. Other blockchain platforms and cryptocurrencies do not take this strategy. To be more explicit, instead of releasing new versions or iterations, associated products, and new features to the general public right away, each update undergoes a sequence of tests. Every stage of development is subjected to peer evaluation.

It’s also worth mentioning that the platform’s development is being led by a strong staff. It aspires to offer an open and inclusive standard in technological development and deployment by making the system as open-source as feasible, in addition to Hoskinson’s expertise and experience and the direction of the Cardano Foundation.

Consensus-based on Proof-of-Stake 

One of the biggest critiques and limitations of Blockchain technology is its negative environmental impact owing to high power consumption requirements. The same may be said about Bitcoin. The Cardano blockchain network, on the other hand, uses the more energy-efficient proof-of-stake approach to gain consensus. It’s worth noting that Bitcoin and the first version of Ethereum both use the more computationally and energy-intensive proof of work approach. According to estimations from February 2021, the network consumes 6 GWh of electricity per year, according to Hoskinson. Bitcoin uses about 110 terawatt hours (TWh) each year. The platform achieves energy efficiency further by limiting the number of people who can mine Ada.

Resemblance with Ethereum

Cardano’s other benefits include scalability and a wide range of blockchain applications. Smart contracts, minting of cryptocurrency tokens and non-fungible tokens, and development of other blockchain-based application fields such as NFT games, decentralized finance, and supply chain and inventory management, among others, are all possible applications, similar to Ethereum and unlike the single-use case of the Bitcoin platform. 

One of the most well-known projects to use this blockchain technology is Marlowe. The service focuses on allowing anyone to use smart contracts to form and execute peer-to-peer financial agreements.

Ada Cryptocurrency’s Supply Cap

The greatest amount of Ada available is 45 billion. This limitation, like Bitcoin’s supply cap, generates a sense of scarcity that can help drive up its value in the future, particularly if it succeeds to become a more popular cryptocurrency as measured by widespread use by end-users and merchant acceptance. 

In modern economics, a commodity’s value is defined by two characteristics: utility and scarcity. Of course, this does not ensure that Ada’s value will rise, but if and when it does, the limited supply will serve to boost demand and value.

According to tests, the Cardano blockchain technology can handle 257 transactions per second. It has plans to improve its technology in order to increase its processing capacity even more. It has set a lofty target of processing one million transactions every second.