Cardano’s ADA token climb on its new all-time high of $1.96, 12:12 PM UTC on Thursday, increasing its market capitalization to around $61.5 billion amidst Elon Musk’s tweet of Tesla’s decision to refuse bitcoin as payment because of environmental concerns.
The digital token is the only one among the top ten crypto-currencies to increase its price after Musk’s tweet plunged all others down to 9% over the past 24 hours.
The mining process consumes electricity to solve a series of cryptographic problems to validate a transaction resulting in the creation of a new block in the digital ledger as well as new bitcoin/s to incentivize the miner who found the solution.
“With proof of stake systems, instead of mining, we say, “We’re just going to go ahead and weigh your stake proportionally, treat it like a synthetic lottery, and you should win on average that much,” explained Charles Hoskinson, founder of Cardano and co-founder of Ethereum.
The proof of stake mechanism is an algorithm designating which network node is given the chance to solve the cryptographic problem which is much more efficient compared with the brute-force nature of the Proof of Work method that bitcoin is currently using.
Hoskinson claimed Cardano uses just 6 gigawatt-hours of energy annually compared with the 115.85 terawatt-hours that bitcoin is estimated to use.
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