Could Cardano’s “green” cryptocurrency ADA take over Bitcoin and Ethereum?

Little-known cryptocurrency Cardano (ADA) has come out of nowhere to become the third largest after Bitcoin and Ethereum after blockchain enthusiasts recently looked for more climate-friendly options.

Cardano’s price is up more than 36 percent in the past week and its market cap is $ 90.60 billion, according to the crypto website. CoinMarketCap.

What is Cardano and what are the reasons for its success? Here is everything you need to know.

What is Cardano?

Cardano is a blockchain platform and has its own internal cryptocurrency called ADA.

The tokens are named after Augusta “Ada” King or Ada Lovelace, a 19th century British countess who is known for her work on a theoretical calculating machine. She is widely considered to be the first female computer programmer and is the daughter of the poet Lord Byron.

Cardano was founded in 2015 by Ethereum co-founder Charles Hoskinson and launched in 2017. Since then, the token has returned 7,080 percent to investors.

Cardano is the largest cryptocurrency using a proof-of-stake blockchain model, which is believed to be a greener alternative.

As crypto enthusiasts become aware of the environmental impact of crypto, Cardano has the upper hand over Bitcoin and Ethereum, and this could be a reason for its recent success.

Recent figures from Bitcoinenergyconsumption.com show that Bitcoin’s estimated annual emissions are over 57 million tons of CO2 per year, which is roughly the annual carbon footprint of a small European country.

Meanwhile, Iran and China temporarily banned all crypto mining this summer because the computers used were consuming too much electricity and causing power outages.

The proof of stake works by randomly assigning coins to users who provide coins as collateral. This is different from the proof-of-work mechanism – used by both Bitcoin and Ethereum – which requires a global network of computers to run concurrently when a transaction occurs.

This method is intended to encourage an increased computational effort for transactions, which consumes much more energy than the proof of the proportion.

On his website, Cardano says, “We have changed science. We have changed what it means to build global systems and sustainable models of exchange and governance.

“Together with our community and our partners, we are defining a new future: a decentralized future without intermediaries, in which power is returned to the individual.”

What are the reasons for Cardano’s success?

In the past two weeks, the cryptocurrency market has rallied. Bitcoin and Ethereum have led the wave, but “Altcoins” – alternative digital currencies to Bitcoin – have also gained momentum in the prize race.

Cardano’s price hike came after the announcement of a major upgrade called Alonzo, which will hit the market in September.

Alonzo will introduce smart contracts to the blockchain. Smart contracts are programs stored on a blockchain that are executed when specified conditions are met. Typically used to automate the execution of an agreement, they allow Cardano to provide its own smart contracts and pave the way for its own decentralized applications (dApps).

Another reason for Cardano’s surge is that its coin will be listed on the Japanese stock exchange from August 25 upon approval by the country, which is considered to be one of the strictest criteria to enter the market.

This means that Cardanos ADA will join the elite coins of Bitcoin, Ethereum and Litecoin in Japan where it will be put to the test.

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