Cardano’s ‘green’ cryptocurrency ADA has recently gained significant attention and surged to become the third-largest cryptocurrency, following Bitcoin and Ethereum. The surge in its price and market capitalization is attributed to several factors, including its environmentally friendly approach and upcoming technological advancements.
Cardano is a blockchain platform with its own internal cryptocurrency called ADA. It was established in 2015 by Charles Hoskinson, a co-founder of Ethereum, and was launched in 2017. One of the key reasons for Cardano’s success is its adoption of a proof of stake blockchain model, which is considered to be a more environmentally sustainable alternative to the proof of work mechanism used by Bitcoin and Ethereum.
The environmental impact of cryptocurrencies has become a growing concern among crypto enthusiasts. Bitcoin’s estimated annual emissions are over 57 million tonnes of CO2, which is comparable to the carbon footprint of a small European country. Additionally, countries like Iran and China have temporarily banned crypto mining due to its excessive energy consumption. In contrast, Cardano’s proof of stake model randomly allocates coins to users, who put up coins for collateral, significantly reducing the energy consumption associated with transactions.
Moreover, Cardano has announced a major upgrade called Alonzo, scheduled to launch in September, which will introduce smart contracts to the blockchain. Smart contracts are stored on a blockchain and are designed to automatically execute an agreement when specific conditions are met. This upgrade will pave the way for Cardano to deploy its own smart contracts and decentralized applications (dApps), further enhancing its utility and attractiveness to investors and users.
Cardano’s recent surge in price is also attributed to its upcoming listing on a major Japanese exchange, which is known for its strict criteria for entering the market. This move will further solidify Cardano’s position in the cryptocurrency landscape and provide an opportunity for ADA to gain traction in a highly regulated and influential market.
Overall, Cardano’s combination of environmentally friendly technology, upcoming technological advancements, and market expansion efforts has positioned it as a formidable contender in the cryptocurrency space. As the crypto market continues to evolve, Cardano’s success and potential for growth are likely to capture the interest of both investors and blockchain enthusiasts.