Cardano (ADA) bucked the recent downtrend in the cryptocurrency market, rising to a new all-time high while other coins sagged. In large part, this is due to Elon Musk’s continued interference in the sector – his tweeting about Bitcoin’s power usage brought increased scrutiny to the proof-of-work algorithm. As Bitcoin continues to sap energy supplies worldwide, concerns are growing that it may be unsustainable. Cardano, with one of the first and most successful proof-of-stake variants, represents a high-profile alternative to the power-hungry market leader.
Vaunted cryptocurrency supporter Mark Cuban chimed in, having a lengthy public discussion with Cardano’s founder, Charles Hoskinson. The conversation, which included discussions of applications, utility, and payment services highlighted some of ADA’s best assets. Cuban went away ‘rooting’ for Cardano’s success and with a seemingly positive outlook on the project. Even Nasdaq reported on the rise in Cardano’s value, as mainstream attention towards altcoins grows in the wake of the most recent boom.
What is Cardano (ADA)?
Cardano came about in 2015 after Charles Hoskinson departed the Ethereum project. The schism between Hoskinson and Vitalik Buterin reportedly occurred due to a difference in fundamental beliefs on the project –Hoskinson wanted a commercial project, where Buterin wished to focus on a non-profit approach.
Cardano operates similarly to Ethereum, with both projects operable as a smart contract platform. The key difference, currently, lay in Cardano’s Ouroboros algorithm. A proof-of-stake style validation system, Ouroboros consumes drastically less power than a traditional proof-of-work system, relying on staked ADA rather than arbitrary difficulty. This reduces the power required to less than 1% of Bitcoin.
The Rising Smart Contract Wars
A large sector of the cryptocurrency industry focuses on smart contracts. These autonomously triggered commands allow for a variety of decentralized applications, building a massive network of internet computing. While Ethereum ostensibly introduced the concept to the world, their sluggish transaction speed and high fees are forcing users to other options.
Cardano is one such option, although still early in their network deployment. In contrast, Binance’s Smart Chain project hit the ground running during this cryptocurrency boom cycle. This isn’t to say that Cardano cannot succeed down the line, but it does show some of the legacy blockchain projects that time may be running short. As more institutional money flows into the industry, users will expect results rather than promises.