#WhiteHouseCryptoSummit
The goal of Cardano is to be the most environmentally sustainable blockchain platform. It uses a unique consensus mechanism called Ouroboros, unlike the energy-intensive proof-of-work system currently used by Bitcoin.
What is proof of work? Decentralized networks for cryptocurrencies need to ensure that no one spends the same money twice without a central authority like Visa or PayPal in the middle. To achieve this, they use a 'consensus mechanism.' The original consensus mechanism for cryptocurrencies is called proof of work, which was first promoted through Bitcoin mining.
Proof of work requires a massive amount of processing power, contributed by virtual 'miners' around the world who compete to be the first to solve a time-consuming mathematical puzzle.
The winner gets to update the blockchain with the latest verified transactions and is rewarded with a predetermined amount of cryptocurrency.
What is proof of stake? Instead of using a network of competing miners to solve the puzzle, proof of stake uses a network of invested participants called validators. Instead of contributing processing power to secure the network and verify transactions like miners do, validators stake their ADA.
