When it comes to sustainability and environment-friendly cryptocurrencies, Cardano has two clear advantages: far less energy consumption, and staking.
In proof of stake, network participants run nodes, and the chain selects a node to add the next block, based on the node’s stake and other parameters.
So the main difference between these two algorithms (and therefore, in their energy requirements) is that in the proof of stake, block producers do not need to spend excessive amounts of time and computer power to solve random puzzles.
IOHK-chief Charles Hoskinson has estimated that Cardano’s energy use is just 0.01% of Bitcoin.
Key Takeaways
•Cardano consume less energy.
•You can stake with Cardano.
•Cardano offers much more than just a currency.
Amazingly, Wikipedia (unlike many other internet sites) offers a very clear and accurate definition of Cardano. It is not for nothing that the Ethereum co-founder Charles Hoskinson turned to a new project after building the second largest cryptocurrency.
Bitcoin, Ethereum, Litecoin, and many others gave enough time to put the real applicability of cryptocurrencies to the test and at the end of this involuntary test phase, numerous errors crystallized. Mistakes that make Bitcoin almost unusable and the Ethereum network slow.
SEE ALSO: How to Stake Cardano on a Crypto Wallet
There are issues with anonymity, speed, decentralization, and transaction costs. Exactly the problems that should actually be solved by crypto currencies are suddenly the focus of the crypto community and instill fear of the future.
If you consider that the value of Bitcoin and Altcoins is also largely in the future, then it is not surprising that the users of the respective blockchains disagree and divisions arise.
The big problem facing the classics is that errors that could hardly be expected in the past – since most of the technology was mainly theoretical – now become real together with the vision and drive it into the abyss.
Everyone can now see the mistakes of the giants and work is being done on every nook and cranny to fix them.
The good news: this is entirely possible.
The bad news: It is more than a hassle to repair a vehicle that is already running. The currencies are split up: Bitcoin, Bitcoin Gold, Bitcoin Cash – Ethereum, Ethereum Classic.
5 Facts That Show Cardano is Environmentally Friendly
Fact 1: Cardano solves the political problem
Governments, companies, and above all banks try again and again to put a stop to crypto currencies. The users are too anonymous and the door is still wide open to illegal business.
Cryptocurrencies are badly taxable and hide what happens to the money. These circumstances mean that China is already banning cryptocurrencies and other nations are also trying to restrict free currency projects.
Cardano approaches the actual problem openly and turns it into a strength, because the programming from the start integrated the possibility of applying all the changes to the blockchain that politicians want.
Fact 2: Cardano solves the speed problem
Thanks to the free design and the Proof of Stake process, transactions are processed very quickly. The Bitcoin blockchain was enormously slowed down by the increase in transactions and payment transactions were very cost-intensive.
Ethereum is also experiencing some of these problems. When one of the first decentralized apps finally celebrated success, the Ethereum blockchain became so slow that Ether transactions took even more time than Bitcoin transfers.
Cardano’s blockchain has no problem with the same errors and has (theoretically) already solved what is currently being revised bit by bit for Ethereum and Bitcoin.
Fact 3: Cardano solves the energy problem
The biggest advantage of the Proof of Stake mechanism is that no energy is wasted. Bitcoin transactions often cost 30 € in terms of electricity and the environment is heavily burdened by Bitcoin mining, with its additional mathematical puzzles.
Proof of Stake does without any mining processes and thus saves a lot of valuable energy both in allocation and in shipping.
Fact 4: Cardano offers much more than just a currency
Cardano’s Network is not limited to the ADA currency. ADA is just a means to an end. The true potential of Cardano is still in the stars. What is certain, however, is that the Ethereum blockchain is in principle able to keep decentralized apps running.
So we can assume that your co-founder 2 years later was able to ensure the same functionality.
This cryptocurrency will most likely offer a functional platform for decentralized apps and publish some of its own innovations of this kind itself. As soon as Cardano is up and running, even newer cryptocurrencies can be started up via the blockchain before they have their own blockchain.
Cardano is also planning to run NFTs on the chain – so a lot is planned and there is still a lot to come.
Fact 5: Cardano is scientific
Charles Hoskinson has made sure that the high goals of the network can also be met. His team consists of top executives in philosophy, programming, design, and security. There are several professors on board and several white papers and a roadmap have been submitted.
White papers usually provide information about how an invention is constructed and how it works. While many other currencies don’t even have a single one, let alone a good one, the team around Cardano has published several, all of which are structured roughly like a doctoral thesis. Every decision within the team is evaluated using numbers, facts, and arguments.
The overall approach to the project is a very professional one. Nothing is left to chance, the public is regularly informed and only experts and former co-founders of other currencies work together.
Frequently Asked Questions
1. Is Cardano better for the environment?
Yes.
2. What is the most environmentally friendly cryptocurrency?
- Algorand (ALGO)
- BitGreen (BITG)
- Cardano (ADA)
3. Is Cardano a green Crypto?
Yes, Cardano is called “Green Cryptocurrency”
Final Thoughts
Cardano and its Coin ADA have great potential. Because behind the project are 3 institutions, a co-developer of Ethereum, as well as numerous professors including a scientific approach.
Read More
