The Cardano blockchain can be described as “third generation”, designed as an improvement on Bitcoin and Ethereum. Created by a former Ethereum founder, the ultimate aim is to provide an agnostic cryptocurrency ecosystem that can operate across different blockchains.
It’s intended to be more interoperable, more scalable, and more sustainable than its predecessors. With this in mind, here’s a look at some of its key uses.
A New Way to Pay Online
The Cardano blockchain uses ADA as its native digital coin and offers a flexible and scalable platform, suitable for smart contracts and decentralized finance applications. ADA can be bought and sold on exchanges like Coinbase, and it can be used to send and receive payments.
This allows it to be used for a wide range of online transactions for services that accept cryptocurrencies. These include well-known online services like Twitch, iTunes, and Shopify. As one of the earliest and widest adopters of crypto payments, the iGaming industry has contributed a lot to how much cryptocurrencies have been flourishing online through specialized crypto casinos.
Some online casinos now even offer newly invented specialized sites like Cardano dice platforms. The instant processing, quicker sign-ups, better bonuses, and minimal fees that crypto payments enable at these platforms have become a strong draw for gambling enthusiasts all over the world who now flock to offshore crypto casinos over local choices.
The reason for its popularity and direct use is because of its third-generation capabilities. Bitcoin can be seen as Crypto 1.0. While it was the first cryptocurrency to penetrate the mainstream, it suffered from scalability issues. Ethereum improved on this, effectively becoming Crypto 2.0. Cardano can be seen as Crypto 3.0, as it improves on the functionality of Ethereum. It’s now one of the fastest-growing blockchain assets.
As another perk, ADA can be used as a store of value and a transfer mechanism in the same way as other cryptocurrencies. Cardano enables real-world assets like property and precious metals to be tokenized, the way NFT models have been doing so across a variety of other industries.
Supply chain management is another central focus. Applications built on the Cardano blockchain allow for decentralized identities and verifiable credentials. This fosters transparency and seeks to connect global liquidity.
What’s Different About Cardano?
The major difference between Cardano and many other cryptos is that it uses a “proof of stake” verification process, rather than the “proof of work” method used by generation one cryptocurrencies like Bitcoin.
The proof of work model is a blockchain modality that uses huge decentralized computer networks to “mine” the cryptocurrency by solving 64-digit encoded keys. The first person or entity to do so gets to create a new block in the chain containing all the verified transactions and is rewarded with a percentage of this newly minted coin.
This method requires high levels of computing power and thus consumes vast amounts of energy. It poses severe scalability issues, due to the exponentially increasing power demands and mining time.
The proof of stake method uses a network of validators, who stake their own crypto funds to validate new blocks mathematically. The “winner” is identified by the network according to how much each validator has staked and how long they have done so. Beyond that, all validators are rewarded based on the proportion of their stake.
Using Cardano in Everyday Life
Cardano’s native ADA token is a digital currency that can be used globally, without the need for a third-party mediator (like a bank). It can also be used as a stake in the network, as described above.
A wide variety of online platforms accept ADA:
Online Shopping
One can use ADA on all manner of online shopping platforms. These run the gamut from clothing and fashion outlets to electronics, house plants, and groceries. Computers and other devices are available, as are musical instruments and all kinds of household appliances. Many of them accept ADA along with traditional forms of payment, while others are specialist crypto outlets.
Gaming
Online gaming platforms were among the first to adopt cryptocurrencies, and ADA can be used to fund accounts, for in-game purchases, and to obtain accessories like Dota 2 character skins. Physical merchandise is also available, be that a Dungeons and Dragons T-shirt or a flight sim rig.
Gift Cards
Gift cards are a hugely popular way of spending Cardano crypto. Specialist outlets like Coinsbee accept them in return for a plethora of goods and services. Once purchased, the card funds can be used to buy goods and services from some of the world’s most popular brands, like Amazon, Xbox, Nintendo, Zalando, and iTunes.
Hosting Services
Dozens of web hosting companies allow one to use ADA to pay for services, whether for individuals or businesses. These include providers of VPS hosting, dedicated servers, domain services, and VPNs. Some, like Crypadvise, offer dedicated hosting for companies that trade in cryptocurrencies.
Travel
ADA can be used to book all kinds of travel and holiday conveniences, including air tickets. One can directly book at individual hotels and guesthouses that accept crypto or use an accommodation aggregating website. Car rental is also possible, along with booking taxis and airport transfers.
Education
Several distance learning platforms accept ADA. These are typically education websites that offer foreign language learning and career advancement courses. Some specialize in educating people about cryptocurrency itself, providing useful information, and learning programs for new investors.
Real-World Asset Tokens
ADA can also be used to tokenize real-world assets through NFTs (non-fungible tokens), for example. Tokenizing provides asset mobility and significantly streamlines its monetization. It can be used to record, store, and transfer ownership of a tangible asset, such as a house, an item of jewelry, or anything with intrinsic value. NFTs of digital art have become very popular trading and investment tools.
Tokenizing removes the middlemen and dispenses with the inefficient red tape traditionally involved in trading such assets. Assets can be liquidated faster, and asset fractionalization lowers the barrier to entry.
Conclusion
As cryptocurrencies grow increasingly popular, the energy demands of traditional mining start becoming unscalable. By using research-driven, peer-reviewed mathematical staking validation instead of cryptocurrency mining, Cardano offers much better scalability and requires substantially less energy. For this reason, it’s often painted as the greener alternative to Bitcoin or Ethereum.
Its widespread functionality not only makes transacting fast and less expensive; it’s also being used at operational and infrastructure levels. It enhances supply chain transparency, efficiency, and accountability, for example. This has the potential for positive transformation of many industries across sectors from agriculture to health care.
