- Proof-of-Stake consumes only 6 GWh of energy. This is very good for the environment.
- Proof-of-Stake also increases efficiency by reducing the cost of operating it.
Cardano is not only the seventh-largest cryptocurrency but also the fastest-growing among all other cryptocurrencies. It was just launched in the year 2015 by the former co-founder of Ethereum, Charles Hoskinson. Although he played a vital role in making Ethereum, his views differed a lot from Vitalik Buterin’s. He wanted to commercialize Ethereum. Due to the conflicts, he left Ethereum and developed his cryptocurrency called Cardano.
This currency was named after the famous Italian mathematician Gerolamo Cardano. The coin was named after English mathematician Ada Lovelace which is called ADA.
Advantages of Cardano
Cardano was launched as a competitor to Ethereum. When it was launched, people also gave it the name “Ethereum killer”. It has many qualities which are better than Ethereum. As the name suggests, it is giving tough competition to Ethereum.
It is better than Ethereum because it offers the following feature:
Cardano was specially designed to consume less energy. A single transaction on Ethereum consumes only as much power as needed to run an average household in the US for 5.5 days. It also does not pollute the environment by leaving carbon footprints.
Cardano has not only solved the problem of energy consumption but also contributed to the sustainable growth of the environment. It consumes only 6 GWh of energy per year which is way less than Ethereum. Cardano is working towards sustainable development. The Cardano Foundation has planted millions of trees to save the environment. Additionally, Cardona leaves a lesser carbon footprint as compared to Ethereum or Bitcoin.
What is Proof-of-Stake?
Proof-of-Stake is a consensus protocol that uses the amount of stake held in the system to determine the consensus. Consensus is a set of rules that every network that runs on it has to follow.
Cardano is built on the Proof-of-Stake protocol. This is the first protocol developed on peer-reviewed research. Stake pools ensure that everyone can participate in the protocol.
The Proof-of-Work protocol which is used by Bitcoin is very different from that of Proof of Stake. This is because the proof of work protocol encourages miners to be the first ones to solve the problem and add a new block to the blockchain network. Miners further receive rewards for mining the block. This protocol comes at a cost as it is not energy efficient. Bitcoin uses as much energy to run a country like Norway or Ukraine for a year which makes it harmful to the environment.
Proof of Stake consensus not only ensures low energy consumption but it has other benefits too.
Advantages of Proof of Stake Protocol
- This protocol provides high security and ensures that all the transactions are operating properly.
- It also reduces the chances of it becoming centralized by penalizing the selfish practices on the network.
- Cost-effective – Since proof of stake consensus uses very less energy. The cost of operating it is also very less.