There have been talks about one coin in particular: Cardano (ADA). Cardano is a platform claiming to be the next big thing as it is based on an academic study of the blockchain philosophy. ADA is currently holding a top ten position in the current market cap (as of March 30th) at roughly $3.8 Billion. We have seen a sudden rise in the market price of Cardano back in December ‘17 - January ’18, and that is one of the major reasons we decided to write about ADA.
WHAT IS CARDANO
Cardano, as we know it, is a decentralized open source blockchain project from Input-Output Hong Kong (IOHK is a technology company committed to using P2P innovations). Cardano was launched on September 2017, and the team is developing smart contracts which are supposed to take cryptocurrency to a whole new level.
HOW IS CARDANO DIFFERENT
Cardano, according to IOHK, belongs to the 3rd generation of cryptocurrency. What makes Cardano different is that they put their academic work and let it go through a peer review process. Unlike Cardano, other ICOs start without any real world testing or without cross checking the execution-ability of the idea. This is called Proof of Stake.
DEVELOPMENT OF CARDANO
Cardano is building on the Etheruem platform, which is faster than Bitcoin, and also gives developers the ability to create ERC20 appications (also know as Dapps) with smart contracts. Ethereum provides a framework where (1) inter-operability, (2) sustainability, and (3) scalability is maintained.
1) Inter-operability is the ability to interact with other blockchains. Cardano plans to use different technologies such as atomic swaps and side-chains to make it happen. Communication is the main reason behind the inter-operability between different crypto coins. Cardano wants to make transactions between them possible, which will be a game changer in cryptocurrency!
2) Sustainability is simply implementing a system of governance which is better compared to what the first or second generation of cryptocurrency offers. The proper implementation is yet to be done.
3) Scalability is an important factor in the success of a crypto coin. Cardano has it. It is about making blockchain scale with more users. Scalability is also about making transactions faster while having a heavy load of users.
WHY SHOULD YOU INVEST IN CARDANO
ADA has increased exponentially since the beginning of 2018, and came down to the previous margin in a short amount of time. Considering all factors, Cardano is not aggressively marketing their campaign but is still performing well. That is one reason why it could be worth investing in.
Charles Hoskinson, one of the team members from Ethereum, is the founder of Cardano. This gives the project a solid handle on the integrity of the Cardano team.
WHY SHOULD YOU NOT INVEST IN CARDANO
There are two main reasons why one would not invest in ADA:
1) The exponential rise in market cap is not necessarily an indication of the state of technology. It can be just an indication of people investing in it, without exactly understanding what it actually is, just because the website looks good, and they've outlined what they WANT to do. The team looks good, but there are a lot of things to be done yet.
2) The fundamental design of Cardano (ADA) is substantially different from that of the other projects currently on the market, so we have no idea if it will work well under the conditions. Additionally, we do not know yet if the team involved in the project are not interested in it for self benefit. The flaws in the logic might not have been exposed yet.
Summarizing the decision to invest
Every cryptocurrency out there has pros and cons and nothing out there is perfect. So the decision to invest or not is completely on the investor. The risk factor is only made on the assumptions floating in the market. However, investing in Cardano might turn out to be a very good decision, since it looks a solid project as of now.
Lastly, we would like to mention that investing in ADA is a good decision, but should not be taken as investment advice. As everyone says, DO YOUR OWN RESEARCH.
Cardano: ADA in short summary
1) Date of launch: September 29, 2017.
2) Coin Supply: 31,112,483,745 ADA
3) 3rd generation blockchain technology
4) Proof of Stake Algorithm: OuroBoros
5) Wallet: Daedalus