Cardano isn’t a cryptocurrency but has emerged as a network. Its team calls it a blockchain project. There are namely three organizations that take part in the project of Cardano and every one of them plays a distinct role mentioned below:
- IOHK – This is a blockchain development firm that is located in Hong Kong.
- The Cardano Foundation – This is a non-profit organization that is located in Switzerland. This aims to expand the Cardano network by cooperating with institutions and governments.
- Emurgo – This is a company that is formed for developing and supporting businesses that aim to use the technology of Cardano.
Factors that differentiate Cardano from Ethereum and Bitcoin
Cardano has been designed for solving the issues of 1st and 2nd generation cryptocurrencies, like those of Ethereum and Bitcoin like:
Interoperability is referred to the foundational issue of many blockchain networks, and that is the entire shortage of interconnectedness amongst cryptocurrencies. Here, online exchanges and third parties can form their market and influence the gushing of value that happens between networks.
Scalability is related to the number of transfers within the network of blockchain that are being confirmed in a second. With the increase of the transactions data size, the number of networks within a block lessens.
Sustainability is regarding the financial prosperity of a network. The funds get deposited in the bank account and the rate of inflation is hoped to encompass the operating costs. It is also concerned with the community of the network and the network is designed for avoiding any potential split.
The network of Cardano utilizes the PoS or Proof-of-Stake algorithm and Ouroboros Algorithm and this results in low costs of energy and quicker transaction processing.
The working process of the Cardano
Cardano is known as the 3rd generation blockchain and it is designed for solving the scaling problems that are commonly related to Bitcoin (generation one) and Ethereum (generation two) and Cardano (ADA). The earlier generation blockchains remain prone to higher transaction fees as well as lower transactions per second or TPS due to some confinements in their design, Cardano has been developed for providing a highly decentralized, high-TPS PoS, and low-fee network solution.
The aim of Cardano
Cardano intends to augment the overall capacity and speed of its networks in many ways. Designed keeping efficiency in mind, Cardano does boast of an exclusive feature, which is the Hard Fork Combinator. This innovation permits the network to hard-fork in the absence of the blockchain.
In the presence of the Cardano network, people can do some cross-network transactions via sidechains. Commonly, a sidechain is a different blockchain that is being linked to the chief blockchain. The ultimate aim of Cardano is to become a portion of the public infrastructure. The Greek National Research & Educational Network is one of the first organizations that use the network of Cardano. The Educational Network too will be using Cardano for registering and verifying student degrees.