Cardano’s Proof-of-Work success may pull it out of the red trading territory

Home to the ADA cryptocurrency, Cardano has made its first step in creating a digital platform that will establish the virtual currency it holds as one of the most secure today.

CryptoRecorder reported that Cardano, although tagged as the sixth best digital coin in the global ranking, is still part of the best three systems “when it comes to operating with and deploying decentralized apps.”

The crypto platform team, known as the IOHK, has reportedly made a major breakthrough in resolving the so-called Proof-of-Stake (PoS) algorithm. Solving this will create the most secure crypto wallet in the world.

Why PoS matters so much to ADA

The team said that its advancement in the PoS is one of the “most significant” achievements it had done.

Resolving the PoS protocol would change the current landscape that adopts the Proof-of-Work (PoW) system. Block Geeks explained that under the PoW scheme, transactions go through a trustless and distributed consensus, where the money sent and received do not have to deal with a third party server. This is made possible because of a ledger that everyone can view. This way, information on the transaction can be verified.

Under PoW, miners who solve the algorithm are rewarded with access to the validated ledger.

Meanwhile, with the PoS protocol, the maker of a new block is selected in a way where more qualifications are factored in. Part of these criteria is the creator’s wealth or stake. As such, PoS does not grant a block reward and miners profit through transaction fees.

The Proof-of-Work systems rewards miners with access to a ledger if they managed to solve mathematical problems. (Source)

What Cardano has done is to create a PoS that remains scalable but with the addition of PoW’s security feature.

Cardano is bent on creating the most capable platform for deploying and programming decentralized applications, a development that helped the firm gain upward trend in popularity as shown in a Google report. Its programming language is also made to suit organizational and financial applications.

Although the cryptocurrency has been hovering in the negative territory, ADA is still observed to be moving along with the industry’s trend. But in the past 30 days, Cardano had an average of 120 percent against the dollar during April, putting its gains against the green back for the past two months at about 52 percent.

However, its most recent performance is sending mixed signals after sliding 3.8 percent for the past week and losing against the dollar for 2.29 percent more.

However, when placed parallel to Bitcoin, Cardano, which is also in competition with NEO and Ethereum, is put at an advantage. ADA went up 0.17 percent, making it a better performer than Bitcoin, at present.

And with its recent achievement, the coin can be traded at the price of $0.32 per unit.

(Featured image via DepositPhotos)