Is Cardano the “Ethereum killer”?

When it comes to cryptocurrencies, Bitcoin and Ethereum have long been the household names. But wait, there is a new player in town, Cardano! Cardano is a blockchain platform that’s aiming to offer a new and improved way of doing things.

What is Cardano?

Like other cryptocurrencies, Cardano is a decentralized blockchain platform that allows people to send and receive payments using its native cryptocurrency, ADA. But what sets Cardano apart from other blockchains is its focus on research and scientific philosophy. Cardano was founded by Charles Hoskinson and Jeremy Wood.

Charles Hoskinson was one of the co-founders of Ethereum. However, he left the project in 2014 due to disagreements over the future direction of the platform. Hoskinson went on to create Cardano, a new blockchain platform that aims to solve some of the issues of Ethereum. The split allowed both projects to pursue their own visions for the future of blockchain.

Cardano is built on a proof-of-stake consensus algorithm, which makes it more energy-efficient and faster than Bitcoin. It also uses a unique approach to scaling, which allows it to handle more transactions per second.

How does Cardano work?

Cardano is designed to be upgraded and improved over time without radical changes to its protocol. Its architecture is divided into two layers: the Cardano Settlement Layer (CSL) and the Cardano Computation Layer (CCL).

The CSL is responsible for handling the settlement of transactions and the issuance of new ADA coins, while the CCL is responsible for executing smart contracts and other decentralized applications. This separation of function allows Cardano to be more flexible and scalable than other blockchains.

What are the benefits of Cardano?

One of the biggest advantages of Cardano is its scientific approach. The team behind Cardano has published a number of research papers on various aspects of blockchain technology, including consensus algorithms, smart contracts, and more. This focus on research and development has led to a more robust and secure platform.

Another benefit of Cardano is its focus on sustainability and environmental friendliness. Unlike Bitcoin, which requires vast amounts of energy to mine, Cardano’s proof-of-stake algorithm uses significantly less energy, making it more sustainable in the long term.

Cardano is sometimes called the “Ethereum killer” because it addresses shortcomings of the Ethereum network like scalability, flexibility and energy consumption. However, Ethereum continues to improve its network and does have a high adoption. Ethereum’s market cap is currently more than 10x that of Cardano.

TLDR

I think Cardano is one of the most promising blockchain platforms in the world today. I personally like it as an investment and feel there is a lot of upside with its current price significantly lower than its all time high in 2021.