Cardano is a third-generation blockchain network created to solve problems of the Bitcoin and Ethereum networks; in fact, it is known as one of the networks capable of replacing the Ethereum network. Regarding the platform itself, it is worth mentioning that it is open-source and offers great scalability and security thanks to the way it is built. Broadly speaking, it offers a unique platform within the cryptocurrency system. Moreover, it has also been classified as the first scientific blockchain.
The intention of Cardano is to execute a high volume of transactions while ensuring security through cryptography. In addition, it also aims to be a platform prepared for the creation of different decentralized applications, called DAPPs. In other words, it offers companies a platform to develop projects using blockchain technology and also provides a network to carry out thousands of financial transactions in seconds. The most interesting aspect of this network is that it is the first one developed using a scientific basis, as some of its developers are engineers.
Within the blockchain world, the first-generation network is the one developed by Bitcoin, the second generation is that of Ethereum, and the third generation is led by Cardano, although other platforms like Solana are also present. However, what it offers are features that its predecessors did not have. It is also worth noting that Ethereum is working on updates; in other words, it is not a fixed platform and could apply the same technology as its rivals to adapt.
Focusing on the technical part of Cardano, we must say that it uses an algorithm called Ouroboros, which eliminates the need for a proof of work protocol. What this does is make exchanges much faster while consuming less energy and making the network more flexible. Although this might initially seem less secure, since one of the key aspects of the Bitcoin network is its use of proof of work to guarantee security, Cardano does not use it and, for the moment, has proven to be secure.
Proof of work consists of performing difficult computing operations. Although it may seem to make little sense, this protocol serves to prevent undesirable behaviors and is based on requiring work from a client, which is then verified. Thus, it aims to prevent malicious clients from accessing the network to engage in reprehensible behaviors. Cardano has decided to forego this protocol to be faster and more energy sustainable.
