Cardano is a decentralized third-generation proof-of-stake (POS) blockchain protocol designed to address the challenges of the proof-of-work (POW) system. Although Bitcoin and Ethereum are the world’s largest cryptocurrencies, the co-founder of Ethereum, Charles Hoskinson, understood the challenges associated with these two networks. He identified that scalability, sustainability, and interoperability were hard to achieve on the POW-based blockchain system.
High cost, slow transaction processing, high energy consumption, and limited infrastructure were also the shortcomings of proof-of-work consensus. This created the need for a more effective, transparent, and faster blockchain platform – Cardano.
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