The cryptocurrency of Cardano, ADA Coin (ADA), which was introduced in 2017/9, was hardly seen by traders until the end of the 11th month.But since then, the value of the cryptocurrency has grown by 1,520%.With a market cap of $18.8 billion, Cardano is ranked 5th in the world at the date of this article, and it is said it is a cryptocurrency with high future potential.
In the beginning, let’s talk about Cardano (ADA Coin) and its crypto currency ADA Coin.
What is Cardano?
Cardano is a blockchain project established by Ethereum cofounder Charles Hoskinson to “provide a more sustainable and balanced cryptocurrency ecosystem. Cardano’s official website identifies the ADA as the only coin that has a “philosophy in research and a scientific approach”. This means that Cardano’s open source blockchain has been rigorously evaluated by researchers and programmers from academia.
Cardano is a non-profit foundation that manages the Cardano blockchain, has also joined with a number of academic institutions to review and study every aspect of Cardano’s technology. Lancaster University researchers are working on a reference Treasury model to assist in identifying sustainable ways to fund Cardano’s future growth.
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What is the difference between Cardano and other cryptocurrencies?
The remarkable growth of ADA in just two months is a testimony to its volatility in the cryptocurrency market.
ADA calls itself the first 3rd generation cryptocurrency, and aims to address scaling and infrastructure challenges that are demerits in Bitcoin, the 1st generation cryptocurrency that introduced the concept of digital coins, and Ethereum, the 2nd generation cryptocurrency that incorporates smart contract technology.Specifically, Cardano aims to solve issues related to scalability, interoperability, and sustainability in the cryptocurrency platform.
The most significant issue is slowing down of the network due to an increase in the volume of trading.
Cardano utilizes RINA (Recursive Internetworked Architect) to extend the network. Hoskinson stated that Cardano should be able to rival TCP/IP as a most popular method of data transmission on the Internet.
Interoperability is related to portability both in the natural ecosystem of cryptocurrencies and in the interface with the existing global financial ecosystem.Currently, there is no way to cross-chain transactions between cryptocurrencies or seamless transactions involving cryptocurrencies and the global financial ecosystem.Exchanges that crash or charge exorbitant fees are the only intermediaries.Various regulations relating to the identity of customers and transactions are moving the cryptocurrency ecosystem further away from its global counterparts.
Cardano aims to enable cross-chain transactions via a sidechain, where transactions take place between two people outside of the chain.It also seeks ways for people and institutions to choose to provide identity-related and transactional metadata to make cryptocurrencies available for trading and day-to-day transactions.
To ensure sustainability, we must to establish governance structures that incentivize miners and autonomous economic models for cryptocurrency.
In the future, the protocol is embedded into the Cardano blockchain. This will allow applications that make use of it, for instance, wallets and trading platforms online, to automatically check for compliance.
What is the market for Cardano?
Cardano is currently focused on the concept of virtual currency. Cardano’s website provides an overview of various applications including ID management credit system, ID management and Daedalus which is a universal crypto wallet that has crypto-Fiat exchange capabilities.
Cardano, a non-profit foundation that has established a vast list of partner institutions to improve algorithms, design new governance structures and develop new governance models. Hoskinson claims the collaboration is mutually beneficial because Cardano’s research projects are aligned with academic incentives with the expectations of the cryptocurrency industry.
Is cardano’s current value reasonable?
It is true that Cardano’s ADA philosophy is great, but it has the same drawbacks as other cryptocurrencies.That is, there is little to show in terms of implementation.The blockchain was just released in 2017/9, and the limited number of nodes in that network are all managed by the Foundation.
Hoskinson has stated that data scaling efforts will produce positive outcomes in 2019 as well and beyond. Certain innovations within the system like a goal of standardizing protocols is still in the early stages of research. These will be implemented following Cardano’s expanded use case.
Some critics warn that an approach based on Proof of Stake could end in a plutocracy, where the nodes with the most stakes are running the show.While conducting studies to enhance the algorithm according to the Cardano Foundation roadmap, the fully-fledged version of the technology will be available in the second quarter of this year.It is only at that point that we can take a more comprehensive assessment of our future prospects.
The cryptocurrency also faces fierce competition from other cryptocurrencies.Litecoin, an offshoot of Bitcoin, is seeking to play a similar role in everyday transactions.Dash, who influenced Cardano’s approach to governance, also has similar aspirations.Ripple may provide a strong competitor to Cardano’s ambition to be a bridge between the existing financial system and cryptocurrencies.
Cardano has a brilliant vision and a great philosophy. But it is still quite early in its development. It will be necessary to watch the progress of the visions put into practice.