<p>Cardano is classified as a third-generation Cryptocurrency due to the following reasons.</p>
<ol>
<li><strong>Smart Network</strong>  It is almost impossible to have smart transactions in Bitcoin Network. In Cardano, the transactions will be programmable.</li>
<li><strong>Energy Consumption</strong> Cardano uses the Proof of stake concept for evolving consensus with respect to the selection of valid transactions. This reduces energy consumption for running the network by approximately a million times. Cardano can be run using embedded processors.</li>
<li><strong>Research</strong> Cardano is an organically evolving financial operating system with more than 100 peer-reviewed academic research papers. While Bitcoin protocol is more or less frozen since the mechanism for adaptation does not exist.</li>
<li><strong>Governance</strong>  There is a established mechanism for governance financed by the protocol itself through treasury for continuous research, management, and guidance of the project by its stakeholders. No such mechanism exists in Bitcoin.</li>
<li><strong>Bottom-up Approach</strong>   Cardano aims to have practical utility in the lives of millions of people neglected by the traditional financial system. While Bitcoin is just a store of value.</li>
</ol>
<p>I am avoiding mentioning the other project being compared in the question since I feel it's a meme made with the purpose to discredit cryptocurrency and does not deserve an effort for answers.</p>

CC BY-SA 4.0
2021-05-02T06:37:23.240Z
2021-05-02T06:37:23.240Z
raghu
<p>From Wikipedia, cryptocurrency is:</p>
<blockquote>
<p>A cryptocurrency, crypto-currency, or crypto is a digital asset designed to work
as a medium of exchange wherein individual coin ownership records are stored in a
ledger existing in a form of a computerized database using strong cryptography to
secure transaction records, to control the creation of additional coins, and to
verify the transfer of coin ownership.</p>
</blockquote>
<p>This applies to Bitcoin and other cryptocurrencies.</p>
<p>So, what makes Cardano different?</p>

CC BY-SA 4.0
2021-05-02T06:59:38.477Z
Thanks for accepting the answer. However, it is better if we wait for other community members to come up with a much better answer. Just my humble suggestion.
raghu
<decentralization>
What makes Cardano different from other cryptocurrencies like Bitcoin and Dogecoin?
# What makes Cardano different from other cryptocurrencies like Bitcoin and Dogecoin?

(Asked by: username_0 on 2021-05-02)

From Wikipedia, cryptocurrency is:

> A cryptocurrency, crypto-currency, or crypto is a digital asset designed to work
> as a medium of exchange wherein individual coin ownership records are stored in a
> ledger existing in a form of a computerized database using strong cryptography to
> secure transaction records, to control the creation of additional coins, and to
> verify the transfer of coin ownership.

This applies to Bitcoin and other cryptocurrencies.

So, what makes Cardano different?

**Tags:** decentralization
> **Comments:**
> **username_1**: Thanks for accepting the answer. However, it is better if we wait for other community members to come up with a much better answer. Just my humble suggestion.  

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## 1 answers

### Answer by username_1 on 2021-05-02. Score: 7

Cardano is classified as a third-generation Cryptocurrency due to the following reasons.

1. **Smart Network** It is almost impossible to have smart transactions in Bitcoin Network. In Cardano, the transactions will be programmable.
2. **Energy Consumption** Cardano uses the Proof of stake concept for evolving consensus with respect to the selection of valid transactions. This reduces energy consumption for running the network by approximately a million times. Cardano can be run using embedded processors.
3. **Research** Cardano is an organically evolving financial operating system with more than 100 peer-reviewed academic research papers. While Bitcoin protocol is more or less frozen since the mechanism for adaptation does not exist.
4. **Governance** There is a established mechanism for governance financed by the protocol itself through treasury for continuous research, management, and guidance of the project by its stakeholders. No such mechanism exists in Bitcoin.
5. **Bottom-up Approach** Cardano aims to have practical utility in the lives of millions of people neglected by the traditional financial system. While Bitcoin is just a store of value.

I am avoiding mentioning the other project being compared in the question since I feel it's a meme made with the purpose to discredit cryptocurrency and does not deserve an effort for answers.


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