Recently, the cryptocurrency reached a capitalization around US $ 66 billion, ranking behind Bitcoin and Ethereum.
The podium of the cryptocurrencies The most important companies in the market added a new member, who ranks third as one of the most traded behind Bitcoin and Ethereum: Cardano.
Although the currency always remained in the popularity ranking, this month it has a cumulative growth of 56% and it was ranked as the third cryptocurrency with the largest market capitalization, around US $ 66 billion, after Bitcoin and Ethereum that maintain a volume of US $ 860,288 million and US $ 368,213 million, respectively.
“The rise of Cardano is explained in the speculation of retail investors, who are waiting for the new update of the operating system, which will make it, on paper, an even more competitive cryptocurrency, “he explains head of operations from Orionx, Rodrigo Pozo.
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The history of the currency began in 2015 with the creation of a platform to execute smart contracts in the hands of the co-founder of Ethereum and BitShares, Charles Hoskinson, for two years later, to launch it on the market.
After a long discussion with Vitalik Buterin – the other co-founder – about whether or not to keep Ethereum Labs as a non-profit foundation, as well as modifying the currency system to improve its scalability, they pushed Cardano.
Hoskinson founded the engineering company of blockchain, Input Output Hong Kong (IOHK), together with the Cardano Foundation, to develop ADA, the real name of the cryptocurrency that today is simply known as Cardano.
While the platform is named after the mathematician Girolamo Cardano, the cryptocurrency honors Ada Lovelace, one of the pioneers of programming.
“Like Ethereum, Cardano shows itself as an ecosystem, with a different approach and extra optimizations added by its founders. In general, every time a new serious crypto appears, new improvements are added that in a blockchain current are not that easy or fast to implement, “says BeFX investment manager Felipe Encinas.
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Against the rest of the currencies, Cardano’s quality lies in its mining system, since while the two largest in the market use a proof-of-work (PoW) system, Cardano uses a system of Proof of Stake (PoS).
“The main difference between Bitcoin, Ether and Cardano is that now in Bitcoin and Ether a system called Proof of Work or POW is used. This network makes mining or validating each block within the network a little more expensive , Unlike Cardano, which uses the Proof of Stake (POS) system. The POS is much more eco friendly than the POW “, Pozo explains.
In addition, unlike the other cryptocurrencies, Cardano does not depend on miners to validate blocks, because according to the Orionx expert, this is done by the staking of the currency via community wallets.
Along these lines, Hoskinson pointed out to Forbes magazine that ADA uses considerably less energy, reaching an average consumption of 6 GWh per year, compared to 77.8 TWh for Bitcoin.
“Cardano, for example, is 1.6 billion times more energy efficient right now than Bitcoin,” mentioned.
At the end of this note, Cardano was down 3.12% to $ 2.06, reversing the gains made in the last week. The foregoing, due to the global uncertainty due to inflation in the US and the conflict in Afghanistan that has slowed down economic and stock market advances internationally.
“Currently, there are hundreds of projects looking to compete with Ethereum, and Cardano is one of the most recognized, but it still has a long way to go to match Ethereum that, remember, it has a market capitalization 5.6 times higher than Cardano “, they comment from Buda.com.
“The potential of Ethereum and Cardano is immense. However, it is important to understand that, at the protocol level, it is likely that many smart contract platforms coexist at the same time, so it is not clear a priori which ones will be successful and, probably, they will be multiple, “they add.