The bitcoin blockchain was great for its time, then came ethereum, but it was too not the best one because there were huge problems that took away from how cool it was. The world has grown and evolved into a much more advanced place since. The third generation blockchains promise to do a lot more than what bitcoin and ethereum have established.
Cardano is an open source, decentralized public blockchain and cryptocurrency project that is fueled by its native cryptocurrency called ADA (Cardano). It is a regular blockchain that offers decentralized contracts or smart contracts like Ethereum, it does it a little differently. It thinks and calls itself a far superior blockchain protocol developer than anything else like it.
Its infrastructure was implemented after several peer reviews of its whitepapers by researchers and mathematicians around the world. It also highlighted its focus was on solving the 4 critical problems faced by blockchains of the world today, all at one place:
The price of Cardano is low and has a humongous supply. These factors are helping it become a safer and practical network to use and launch your blockchain idea. This is because Cardano uses Proof of Stake instead of Proof of work.
Proof of Work is used as a security layer for blockchain to help keep all transactions true and faultless, however, it is known to use enough electricity as 5 million American families, or entire New Zealand or Hungary. This is very inefficient and in a way the mining pools that come together to earn rewards like trade unions but mean compromise the idea of decentralization lying under the blockchain inception.
The mining pools are huge groups of miners who share rewards by forming large cartels, this takes away the essence of blockchain by making it centralized in various units or chunks. The mining pools may seem fair but the enormous economies of scale they enjoy make them dominant and monopoly-like cartels.
Proof of Stake is something used by Cardano instead, this is much more efficient and other than its peer-to-peer consensus paper system, this helps in overcoming the pain points of bitcoin and ethereum.
In calculating Proof of Stake, it takes lesser time, it is differently organized, it is still decentralized and the rewards are fair. This is done by storing a set amount of coins as a stake in the blockchain, this allows a random slot leader to be selected who then controls and manages the node when the leader is unavailable the node is given off to another one. This reelection allows smooth calculations, it allows better use of resources and a much more fair and faster network!