you've no doubt heard about cardano by now but how much do you really know about one of the
most popular cryptocurrencies so on today's coin market cap episode we're gonna be looking at the
five don'ts of cardano to help those new to crypto better understand what cardano is really all about
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mooning meme coins crypto crashes and squid game scams are dominating the crypto news cycle
and this inevitably means that updates from platforms like cardano get relegated to the back
pages of figurative crypto newspapers including ours when you combine this problem with the crazy
hype around crypto on social media the result is a lot of misconceptions about what cardano is really
aiming to do in fact it feels impossible to scroll through twitter without hearing from 10 different
influencers about how some project is definitely going to unseat ethereum make you a billionaire
and solve real world poverty in a reasonable two weeks which is weird because if earning millions
is really as simple as buying a bunch of floki and doge and hodling then where the hell is my lambo
anyways today we are breaking away from the news cycle and doing our part to put some of the most
common misconceptions about cardano to bed so without further ado let's get into the five don'ts
of cardano all right so the first point is don't compare cardano with ethereum solana and other
blockchain platforms yes in many ways they're all similar and they're all blockchain platforms with
smart contract functionality but there are some important differences between them for instance
they all use different consensus mechanisms to approve transactions on their networks cardano
relies on a novel proof-of-stake consensus mechanism called auroboris whereas ethereum is
still using proof-of-work to process transactions on its blockchain also cardano's native token ada
has a hard cap of 45 billion tokens as opposed to ethereum which has an uncapped total supply but a
limited annual supply of 18 million each per year another key difference between cardano and the
other popular networks is its token burning policy basically it doesn't have one both ethereum and
solana burn their native tokens as a deflationary measure but cardano doesn't charles hoskinson
cardano's founder has repeatedly stated that ada will never have a burning mechanism during
a recent ama session hoskinson got pretty testy with the viewer who asked him why ada doesn't
have a burning mechanism can we start burning aido for scarcity yay congratulations everybody
we have a winner of the paint chip brigade of the day and today's winner is diesel connie
and diesel kane i really appreciate how much effort you put into your greed and stupidity
and displayed it across everybody here in the edit field diesel come on give us some words today good
good good tell the audience how proud you are to win the paint chip parade of the day we are
so glad you can tell us that we gotta destroy other people's money so that you can make a
little extra money and then sell the ada and move on to someone else ouch given that reaction we're
pretty sure that cardano isn't going to start burning ada anytime soon these aren't the only
differences between cardano and its competitors they all have unique and interesting features
of their own and are definitely worth looking into individually so that brings us to number two which
is don't forget cardano is focusing on real-world blockchain applications in the developing world
in hoskinson's own words cardano wants to provide economic identity to the billions who lack it by
providing decentralized applications to manage identity value and governance the other smart
contract platforms have similarly lofty aims but they're not perfectly in line ethereum aims to be
a planetary scale computer powered by a blockchain technology and solana aims to support all high
growth and high frequency blockchain applications and to democratize the world's financial systems
that doesn't mean that cardano isn't built for scalability and speed like its competitors it is
but cardano's focus is on real-world blockchain applications in the developing world in fact
cardano has already taken the first steps towards realizing its mission by establishing working
partnerships in africa one of which is with the ethiopian ministry of education the project is
aspiring to build a blockchain-based national id system throughout all of ethiopia and the
system will eventually include all of the academic records of ethiopian students as well so now that
the alonzo update is live and smart contracts are available there's also a whole host of d5
applications being developed on cardano aiming to help people living in developing countries one of
which is empower empower is a d5 property platform being built on the cardano blockchain right now
the team describes themselves as the first realfi property platform on cardano the platform provides
decentralized finance for people in africa who lack the means and financial resources
to build their own homes as an added bonus the homes are sustainably built and green cardano's
recent partnership in ethiopia and the empower dap are just the tip of the iceberg there are loads
of daps and projects underway trying to solve real world problems through the cardano network
and that brings us to number three which is don't expect cardano to start rushing to bring out new
features aesop's fable of the tortoise and the hare perfectly described the cardano vs ethereum
rivalry ethereum is the hare racing to get ahead through rapid development by regularly releasing
new features as vitalik buterin says ethereum is trying to do more faster cardano on the other
hand has taken the exact opposite approach the founders decided early on that every new feature
would be submitted for academic peer review which is a time-consuming process ceo of the
cardano foundation frederick gegard explained that cardano doesn't launch new features using a trial
and error approach they want to build it once and get it right by taking his time with development
and relying on academic peer review cardano has inevitably let its competitors get ahead in terms
of development still there's a small upside to this slow and steady approach the cardona team
can observe which of the new features being released on other projects work well and which
ones don't all without having to invest time and money to develop and test those features although
there are plenty of people criticizing cardano for its slow and safe and academic approach they're
claiming it's unnecessarily slow and a waste of time and energy and maybe they're right and the
hair won't take a nap and let the tortoise catch up after all but further down the line governments
institutions and larger businesses looking to implement blockchain technology solutions could
prefer to work with the cardano team over their competitors because they've got such a robust
proof of concept then again they could not and in time we'll find out whether it's the hair or the
tortoise who wins the race so that brings us to number four which is don't forget to stake your
ada staking is one area where cardano is ahead of the curve in case you're not aware staking is
where you land your tokens to help secure the network in exchange for interest and payments
it's a great way to earn passive income from your crypto and the cardano staking rewards are pretty
generous the network currently pays out between four to six percent staking rewards per year with
payments sent out every five days as cardona was built from the ground up using a proof-of-stake
consensus mechanism staking your ada tokens is super easy there are loads of wallets that you
can stake with like the yoroi or daedalus wallets which you can access through cardano's website you
can also stake your ada directly on a couple of exchanges like binance kraken and kucoin
and you can even stake from a hardware wallet like ledger cardano isn't the only blockchain
platform that offers token staking but other networks often have some requirements to stake
your tokens such as staking a minimum number of coins or locking up the crypto for years at a time
but you don't need to do any of that to stake your ada tokens there's no minimum staking value above
the transaction cost of sending your tokens to a staking pool and no lock up time although while
the process of staking your tokens takes less than a minute you won't actually start earning
rewards for up to 15 days and if you decide that you want to unstake your ada tokens the process
takes around less than 10 minutes when you start staking ada you'll automatically deposit two ada
which you'll get back later when you unstake your tokens the reason behind this is to make sure the
transaction fee for returning your stake data can be paid just in case your wallet has a zero eight
of balance and that brings us to number five which is don't think that because cardano is a slow and
steady peer review project that is developers are a bunch of stuffed shirts want some proof
well look no further than cardano's recently announced electronic dance music collaboration
that was predicted by literally no one one half of this project is charles hoskinson
a technology entrepreneur and mathematician one of the co-founders of ethereum as well as
the founder of cardano and the ceo of iohk the other half is paul oakenfold a world-renowned
dj and record producer oakenfold has a pretty massive cv he's a two-time world music awards
nominee a three-time grammy award nominee and a 40 year old veteran in the edm industry
in september hoskinson and oakenfold announced that they would be releasing a very special album
the edm album which will be tokenized and shared on the cardano blockchain is called zombie lobster
during an interview hoskinson said that both the blockchain and edm movements have always had a
state-of-the-art mentality he later describes the unexpected collaboration as the natural evolution
a statement okenfold strongly agreed with hoskinson also suggested that fans might be
able to influence and interact with the music in real time while the music is happening which is
both groundbreaking and hugely exciting news for edm fans so anyways guys those were the don'ts of
cardano if you feel like we left anything out make sure to comment it down below and if you have any
questions make sure to ask alex in the description below so anyways guys we'll see you all later