U.Today - Cardano (ADA), the third largest L1 blockchain, can also be considered among the most eco-friendly ones. Developers from Input Output Global (IOG) decided to address a series of publications about the "green" aspects of Cardano's (ADA) design.
Two pillars of Cardano's (ADA) eco-friendliness
Cardano (ADA) deserves "green blockchain" status for its two clear advantages over L1 competitors: far less energy consumption and its staking mechanism. Such a statement was made by Input Output Global (IOG) in a tweet today, on May 25, 2023.Proof-of-stake (PoS), a type of blockchain consensus used by Cardano (ADA) and post-Merge Ethereum (ETH), is far more efficient that proof-of-work (PoW) and its alternatives.
In PoS, block producers do not need to spend excessive amounts of time and computer power to find cryptographic hashes. That is what significantly lowers the carbon emission and reduces the influence of the blockchain on the environment.
As a result, Cardano (ADA) node software clients can be run even on low-cost devices, including Raspberry Pi micro-computers. Unlike that, proof-of-work (PoW) blockchains rely on expensive hardware and consume huge amounts of energy, Cardano (ADA) experts say.
As covered by U.Today previously, multiple Cardano (ADA) ecosystem DeFis prioritized "green development" practices in its tech progress.
Cardano (ADA) DeFi ecosystem accomplished major milestone
Meanwhile, the ecosystem of Cardano's (ADA) decentralized applications scored further impressive milestones. For the first time ever, its net volume of funds locked exceeded 440 million ADA.By late May 2023, five protocols managed to surpass $10 million in equivalent locked on Cardano (ADA) blockchain. Minswap and Wingriders DEXes, Indigo and Djed Stablecoin collateralization modules and Liqwid lending/borrowing tool are in the top five.
USD-denominated TVL touched its local peak on May 24, 2023, at over $163 million, accordingly to data dashboards.