Understanding the three generations of cryptocurrencies that have emerged to date is a way for you to understand more about the advanced technology used by Cardano.
As previously mentioned, Bitcoin is the first generation, followed by Ethereum as the second generation, and Cardano in the third generation.
First generation
Which belongs to the first generation besides Bitcoin is also money transfer.
This technology allows the transfer of money without the presence of a third party.
The problem with the first generation blockchain is that the system only allows transfers without certain conditions.
Ideally, transfers can be made after certain conditions are met. However, at that time this could not be done.Second generation
The second generation is Ethereum and smart contracts that make these requirements can be implemented in the transaction process. This can minimize conflicts and make transactions more transparent. However, the second generation also has a problem, namely the absence of provisions for scalability. In addition, the blockchain regulatory system is also not well planned.Third generation
Cardano is the solution to problems that existed in previous generations. According to Block Geeks, Cardano solves the problem: the ability to operate within an expanding scope (scalability) interoperability, sustainability
The Cardano platform consists of two layers, namely the Cardano Settlement Layer (CSL) and the Control Layer. CSL in the Cardano system is the layer used to manage ADA transactions.
Meanwhile, the Control Layer is used to manage contracts so transactions are more secure.
At the heart of the Cardano operating system is Ouroboros, the algorithm that runs the previously described Proof of Stake protocol.
That way, the use of energy and time to create new coins can be more efficient.
Currently, there are approximately 25 billion ADA cryptocurrency coins in circulation.
While it has yet to beat the market caps of Bitcoin and Ethereum, Cardano is a promising investment.
In fact, based on news from Money Week, Cardano managed to occupy the third position after BTC and ETH in 2021. After understanding what Cardano cryptocurrency (ADA), are you interested in buying it?
Currently, you can get one coin for around 20 thousand rupiah, you know. Make sure you do careful analysis and consideration before making a decision.
@juninhoo