Cardano blockchain is gaining widespread positive attention in the cryptocurrency industry these days. After IOHK founder Charles Hoskinson delivered talks at Google’s London HQ, the blockchain is now being called one of the most promising projects working on distributed ledger technology. A study conducted by trading platform eToro suggests that Cardano has the potential to make it big in this industry. Its new Shelley project could help in achieving complete decentralization of the blockchain.
What Does the Research Find?
Cardano is now being used to provide cryptographic proof of diplomas in several universities. Therefore, even though the project is still young, it has found a valuable use case for its network.
“Even though Cardano is still in the early stages of its roadmap it is definitely one of the most promising blockchain projects we’ve ever seen. It is also the first blockchain project that is being developed using a collective scientific philosophy, based on peer-reviewed scientific research. A great number of its most important features are still under development.”
The Shelley version of the protocol, upcoming in the project, is expected to make the blockchain more decentralized. Nodes, as of now, are controlled via IOHK, Emurgo and the Cardano Foundation — the three principal developers of the blockchain. After the protocol is implemented, rewards and voting systems will become completely democratized and decentralized.
Why Does Cardano Gain Such Attention?
eToro explains that Cardano’s network could be termed as “Blockchain 3.0” and is more “flexible and scalable” than older networks like Bitcoin and Ethereum.
According to the report, two other decentralized application (dApp) platforms like Ethereum and NEO started what is known as “Blockchain 2.0.” The report suggests that the consensus algorithm used in Cardano differentiates it from every other blockchain project on the market. Cardano has a “provably fair” Proof-of-Stake consensus management system, which helps to make it more secure.
In a Proof-of-Stake mechanism, token holders get the opportunity to remain invested in the blockchain. As they become active contributors, they receive rewards for holding their tokens, just like shareholders are given dividends. Ethereum, the second largest cryptocurrency and the oldest enterprise-level Proof-of-Work mechanism in the world that runs on smart contracts, is also expected to move to Proof of Stake soon.