The cryptocurrency world is booming, and with the appropriate knowledge and investment, you could be on your way to becoming a billionaire. This raises the question of what the future holds for it. Cardano is the cryptocurrency of the future. It is a cryptocurrency from the third generation, following Ethereum and Bitcoin. With recent breakthroughs in the area and current trends, it’s safe to predict that the Cardano DEX exchange will be the future of peer-to-peer transactions.
What is Cardano?
Cardano is a decentralized proof-of-stake (PoS) blockchain platform created as a more efficient alternative to proof-of-work (PoW) networks. It is the third-generation blockchains of cryptocurrencies followed by second-generation Ethereum and first-generation Bitcoin. The Cardano platform uses the Ouroboros consensus protocol, a proof-of-stake (PoS) protocol; this allows for more transactions per second and conservation of electricity and computing power compared to its cousin proof-of-work. This makes the Cardano platform way more efficient when compared to its predecessors.
Cardano aims to solve three big issues of the present generation blockchains. These issues are:
- Scalability – For crypto to become a global currency, it needs to handle many transactions per second; achieving this without wasting resources is not possible with the present generation blockchains. To solve this, Cardano uses the Ouroboros protocol, a proof-of-stake algorithm instead of the proof-of-work algorithm. This reduces clutter and increases efficiency. Also, Cardano uses the RINA technique (Recursive Internetwork Architecture), which divides the network into sub-networks; these then can communicate among themselves when required. This removes the requirement of large network bandwidth and improves scalability.
- Interoperability – There are several currencies out there right now, each with its own set of laws and regulations, but they don’t communicate with one another. Crypto exchanges are also discouraged by banks due to their anonymity. Cardano intends to tackle this by having a blockchain that understands what is going on in other blockchains and allowing users to attach metadata to their transactions if they so choose; this also solves the issue of banks.
- Sustainability – Cardano considers ESG (environmental, social, and governance) factors in all of its choices and recommendations. Better risk-adjusted returns are possible as a result. In addition, Cardano takes into account both the good and negative real-world effects of its investments.
In a nutshell, the Cardano platform aspires to be a worldwide currency that is secure and accessible, similar to other blockchain currencies. The Cardano DEX exchange not only addresses but also improves upon the three major flaws that plague today’s blockchains. With all of this in mind, we can confidently state that Cardano is the cryptocurrency of the future.