![]() ![]() ![]() ![]() What is proof of stake? Rather than using a network of miners racing to solve a puzzle, proof of stake uses a network of invested participants called validators. The winner gets to update the blockchain with the latest verified transactions, and is rewarded with a predetermined amount of crypto. Proof of work requires a huge amount of processing power, which is contributed by virtual “miners” around the world competing to be the first to solve a time-consuming math puzzle. To accomplish this they use a “consensus mechanism.” The original crypto consensus mechanism is called proof of work, first popularized by Bitcoin mining. What is proof of work? Decentralized cryptocurrency networks need to make sure that nobody spends the same money twice without a central authority like Visa or PayPal in the middle. (Ethereum is also moving to a proof-of-stake system via the ETH2 upgrade). It uses a unique proof-of-stake consensus mechanism called Ouroboros, as opposed to the energy-intensive proof-of-work system currently used by Bitcoin and Ethereum. Today, ADA can be used to store value (perhaps as part of your investment portfolio), to send and receive payments, and for staking and paying transaction fees on the Cardano network.Ĭardano’s goal is to be the most environmentally sustainable blockchain platform. Much like the Ethereum blockchain’s native cryptocurrency is ETH, the Cardano blockchain’s native cryptocurrency is ADA - which can be bought or sold via exchanges like Coinbase. An upgrade scheduled for the second quarter of 2021 will unlock smart-contract features, bringing Cardano one step closer to its goal of providing developers with a blockchain platform that is robust, secure, scalable, and highly energy-efficient. It’s designed to be a next-gen evolution of the Ethereum idea - with a blockchain that’s a flexible, sustainable, and scalable platform for running smart contracts, which will allow the development of a wide range of decentralized finance apps, new crypto tokens, games, and more.Īs of March 2021, however, smart-contract functionality has yet to be rolled out by developers. It’s designed to be a flexible, sustainable, and scalable blockchain platform for running smart contracts - which will allow the development of a wide range of decentralized finance apps, new crypto tokens, games, and more.Ĭardano is one of the biggest cryptocurrencies by market cap. Cardano is one of the biggest cryptocurrencies by market cap. ![]()
0 Comments
Leave a Reply. |