Unlike Ethereum, which uses a cumbersome proof-of-work (PoW) system where miners solve puzzles to verify transactions, Cardano uses a proof-of-stake (PoS) system where miners validate transactions using existing coins. That said, Cardano's speed is dwarfed by newer competitors like Avalanche and Solana, which boast transaction capacities of 50,000 and 4,500, respectively. While this asset class has been off to a rough start in 2022, its long-term prospects look good as blockchain technology improves and investors seek to protect their wealth against spiraling inflation in fiat currencies.