Cardano is a cryptocurrency like Bitcoin, Ripple, etc. It was founded in 2015 to improve the technology of Bitcoin and other cryptocurrencies using a peer-review system. The Cardano team consists of 3 organizations viz. Cardano Foundation, Emurgo (incubator for commercial ventures), and IOHK (engineering company). Since Cardano uses the Proof-of-Stake algorithm, it reduces the need for expensive mining operations that require massive computing power and electricity, which means more money can be invested into actual economic activities. 

 

A multi-layered protocol – This feature separates Cardano from its competitors – Bitcoin, Ethereum, etc. because all their transactions are confined to a single layer. In contrast, on the Cardano network, there are two layers. The first layer, called Cardano Settlement Layer (CSL), is responsible for transferring information of who owns what, how much, etc.

 

The second layer, called Cardano Computation Layer (CCL), is responsible for the transactions on the platform, i.e., you can transfer money from one wallet to another by leveraging this feature.

 

Offline transactions – This feature makes it possible to carry out payments with Daedalus wallet without connecting to the internet. Even if the internet connection fails or has been cut off, transactions can still be carried out via offline method, ensuring your funds’ safety and security.

 

Online vs. Offline Transactions

Multi-layered nature of the platform – This feature separates Cardano from its competitors – Bitcoin, Ethereum, etc. because all their transactions are confined to a single layer. In contrast, on the Cardano Exchange, there are two layers. The first layer, called Cardano Settlement Layer (CSL), is responsible for transferring information of who owns what, how much, etc.

 

The second layer, called Cardano Computation Layer (CCL), is responsible for the transactions on the platform, i.e., you can transfer money from one wallet to another by leveraging this feature.

 

          Offline transactions – This feature makes it possible to carry out payments with Daedalus wallet without connecting to the internet. Even if the internet connection fails or has been cut off, transactions can still be carried out via offline method, ensuring your funds’ safety and security.

 

This factor separates Cardano from its competitors – Bitcoin, Ethereum, etc. They all use the Proof-of-Work algorithm, which requires enormous computing power to carry out the necessary computations that validate transactions. On the other hand, in the Proof-of-Stake algorithm, you can mine or validate transactions based on how many coins you already own, so it is greener and economical even when compared to PoW.