Updated: Sep 29, 2021
Cardano has been one of the more popular cryptos since initiating a solid upward trend alongside many other cryptos in January 2021. Cardano was created by one of the cofounders of Ethereum and shares many similarities with one of its main competitors in the crypto space.
"Cardano is the first blockchain platform to be built through peer-reviewed research, to be secure enough to protect the data of billions, scalable enough to accommodate global systems, and robust enough to support foundational change"(cardano.org).
Cardano vs Ethereum
Cardano and Ethereum were both created to function as decentralized application platforms- different than Bitcoin that functions as a medium of exchange and a store of value.
Bitcoin and Ethereum currently use a proof-of-work consensus mechanism. Cardano uses a proof-of-stake system. The proof-of-stake system is proving to be more robust and scalable over time.
Ethereum is transitioning to the proof-of-stake soon with ETH 2.0.
PoW vs PoS
Proof-of-Work and Proof-of-Stake are the consensus mechanisms used to verify transactions on the blockchain or within the program. A basic contrast between proof-of-work and proof-of-stake might mention that a proof-of-work consensus is viewed as less scalable because it requires much more energy and computing power, and miners ultimately have to sell the coins to cover the bill. Proof-of-Work however is more secure because it is a completely decentralized algorithm. A network of miners computes complex calculations to keep the blockchain running.
A Proof-of-Stake consensus replaces miners with validators and gives mining power based on the percentage of coins held by the miner. PoS transactions require much less energy and fewer resources than PoW. Cardano has developed and implemented the Ouroboros consensus protocol- the first PoS protocol that has proven to be secure. Ouroboros requires a small number of ADA holders to be online and maintain good network connectivity, allowing transactions to be validated cheaply and quickly.
Proof-of-work is less scalable but more secure; Proof-of-stake is more scalable, energy efficient, but perceived as less secure because nothing is anchoring the blockchain and holding it in place.
Did you know?
Cardano incorporates a peer-review system in which developers, scientists, and other programmers can review upcoming projects and the theories set forth in scientific papers by Cardano. These papers are reviewed and studied at conferences by top scientists and programmers who are kept anonymous at the time to prevent any bias or negative consequences. The goal is that each project or expansion is reviewed by experts in a given field before being finalized. Cardano has over 100 published peer-reviewed papers to date.
D-1- first main channel with the same angle respected on both sides.
D-2- found a bigger channel that again has the same angle respected on both sides (as well as midpoint).
2 Hour charts- (zoom in, same color channels)
2H1 - short term down channel (red).
2H2- horizontal key levels
Final- Analysis (same 2H chart)-