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HomeNewsCryptocurrency: Why Cardano is Booming | BR24

Cryptocurrency: Why Cardano is Booming | BR24

Cardano has become the third largest cryptocurrency in terms of market capitalization in the past few weeks. In a year-on-year comparison, the value of the coin with the abbreviation ADA increased by more than 2000 percent. In the last few weeks, things have risen sharply again, because so-called “smart contracts” will soon be processed on Cardano infrastructure.

Smart contracts are computer protocols that simulate contracts and also control whether these contracts are being adhered to. Smart contracts can then be used, for example, to order goods automatically or to manage copyright licenses. Some crypto enthusiasts also dream that these smart contracts could one day make notaries and lawyers superfluous. From 12.9. the update for Cardano is to be rolled out, which is to position the cryptocurrency as an alternative to Ethereum and other smart contract platforms.

Cardano relies on proof-of-stake

Another factor favoring the rise of ADA is the fact that it is an environmentally friendly cryptocurrency. Cardano is based on the new “Proof of Stake” process, which requires less computing power and thus less energy than the conventional “Proof of Work” process, which is based on Bitcoin, for example.

Many users in Africa

Cardano was founded in 2015 by the mathematician Charles Hoskinson, who was also a co-founder of Ethereum. The Cardano Foundation is located in the so-called “Crypto Valley”, as the Swiss region around the city of Zug is called. Many crypto companies have their headquarters here. In the past, Cardano was able to attract users in Africa in particular and is used, for example, in the Ethiopian education system.

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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