Cardano’s crypto currency ADA Coin (ADA), that was launched in 2017/9 was hardly seen by traders until the end of the 11th month.But since then, the price of the currency has jumped by 1,520%.With an estimated market value of $18.8 billion, Cardano is ranked 5th in the world at date of this article, and it is said it is a virtual currency with high future potential.
First, let’s introduce Cardano (ADA Coin) and its crypto currency ADA Coin.
What is Cardano precisely?
Cardano is a cryptocurrency project which Charles Hoskinson founded to provide a more balanced, sustainable cryptocurrency ecosystem. Cardano’s official website lists the ADA as the only coin that has a “philosophy in science and a research driven approach”. This implies that the open source blockchain has been rigorously tested by scientists and programmers from the academic world.
Cardano is a non-profit foundation. It also collaborates closely with academic institutions to study and review every aspect of Cardano. Lancaster University, for instance, is currently working on a reference Treasury model to find sustainable ways of funding the Cardano future growth.
For more information about Cardano Read this article.
What exactly is Cardano like Ethereum and Bitcoin?
Hands with cardano
What’s the difference between Cardano cryptocurrency and other cryptocurrencies.
The astonishing rise of ADA’s price in just two months is testimony to its volatile nature in the world of cryptocurrency.
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 network slowdown is caused by the increasing trading volume.
Cardano’s protocol also uses RINA (Recursive Internetworked Architectural) to expand it. Hoskinson said that Cardano would like to be on the same level as TCP/IP to allow data exchange via 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 is designed to permit cross-chain transactions through a sidechain, where transactions are made between two parties that are not part of the chain.
To ensure sustainability, we need to establish governance structures that incentivize miners, and also independent economic models for cryptocurrency.
The protocol will eventually become an integral part of Cardano blockchain. The next applications that utilize Cardano including wallets, and online exchanges, will be able to automatically check the compliance of their applications.
What is the Cardano market?
Cardano’s primary application is virtual currency at present. Cardano posted a comprehensive review of all its applications on its website, which includes credit system, identification management and automated crypto trading as well as Daedalus which is an all-purpose crypto wallet and has cryptocurrency-Fiat conversion capabilities.
Cardano Foundation, a non profit foundation, has developed many partners to enhance algorithms and develop new governance structures. https://myclc.clcillinois.edu/web/jeff_test/ttttttutoring/-/message_boards/message/35530216 is of the opinion that Cardano’s research projects will be able to align academic incentives and the needs of the cryptocurrency industry.
Is cardano’s current valuation 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 claims that efforts to scale data will result in results in the year 2019 and even beyond. These innovations, such the goal of standardizing protocols, remain in their research stage. They will be put into practice following Cardano has expanded his use case.
The critics argue that Proof of Stake is a model that could lead to an environment where the top nodes in the chain hold the power to control.
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 is a firm that has a solid strategy and long-term perspective. It is essential to observe the progress of the visions that will be put into action in the near future.