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Concept: June 16, 2021. What is Cardano?

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@marcusantoniu26
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Cardano is a blockchain which uses ADA as cryptocurrency. It aims to be more environmentally friendly by using a proof-of-stake consensus mechanism as opposed to the energy intensive proof-of-work (like bitcoin or ethereum)

The proof of stake consensus mechanism (called Ouroboros), uses a network of validators who stake their own ADA. The network (blockchain) rewards the most invested validator at the time of the creation of a new block. The other validators then attest the the accuracy of the new block and are also rewarded with ADA, proportionally to their investment.

The Cardano network is able to process millions of transactions per second. It achieves this by separating the blockchain in 2 layers. There is the Cardano Settlement Layer (CSL) and the Cardano Computing Layer (CCL). The CSL is where the new blocks are validated and the CCL is where all the applications running in the blockchain are executed.

The Cardano blockchain can create native tokens, just like ethereum, however, not by smart contracting. This means that now (as of March 2021), it can create stable coins or NFT's.

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.

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