Even if one is new to the world of cryptocurrency, Bitcoin and Ether are the names that most users are aware of. But now, cryptocurrency experts across the world are talking about a lesser-known cryptocurrency Cardano, terming it to be the one to watch out for. Cardano, with its native virtual currency ADA, became the third-largest cryptocurrency in the world in August, this year. Presently, it has a market cap estimated to be around $72 billion (roughly Rs 5,31,416 crores) and is topped by only Bitcoin and Ether on the chart. And, it looks like things are only getting better for cryptocurrency. Currently, its virtual currency (ADA) surpasses Bitcoin and Ether, following a 1000% increase in its value during 2021.
What works in Cardano’s favour is the fact that it is one of the few highly valued cryptocurrencies that have “sustainable” properties. This is of relevance at a time when conversations around the sustainability of cryptocurrency have led to a fall in the value of big players like Bitcoin. Bitcoin even lost favour with erstwhile-supporter, SpaceX founder Elon Musk, who cited lack of sustainability as a reason to dump it in favour of Dogecoin.
ADA is sustainable because of its blockchain protocol. So unlike Bitcoin, Cardano does not rely on supercomputers to generate new ADA units and process transactions. Cardano is based on what is known as a “proof-of-stake” system. Here miners are required to place their cryptocurrency as a ‘stake’, to validate a transaction. This, in turn, makes Cardano’s power consumption just a minuscule percentage of the Bitcoin network’s usage.
According to Cardano’s official website, the cryptocurrency is on the way to having a “similar capitalisation to that of the technological giants”. A statement on the site adds, “It might be fair to compare blockchain projects with the current technology giants like Microsoft, Apple and, Amazon.”
Additionally, Cardano also recently saw the ‘Alonzo hard fork’ upgrade. Nearly two weeks ago, the software upgrade was put in place to allow users to create and deploy “smart contracts” on the Cardano blockchain. The upgrade is also expected to allow Cardano to host use cases such as Decentralized finance (DeFi), thereby improving ease of transaction and business.
On September 27, as of 10.40 am, Cardano’s value in Indian is Rs 179.