The Cardano (ADA) team aims to create a blockchain platform that will process a high number of transactions at a low cost. This project also aims to provide financial services to the unbanked population.
Cardano (ADA) is one of the fastest-growing blockchain assets in the crypto space, which is attracting new investors. Moreover, it is among the very few blockchains that are being used by enterprises and government bodies. Today, we will examine Cardano and its third generation blockchain and examine a few compelling reasons why you should be interested in this project.
Ten Reasons To Buy Cardano
1. The Cardano blockchain allows users to create smart contracts without entering into a third party agreement. The team’s goal is to stabilize the dApp sector and to focus on providing security to decentralized applications, systems, and societies.
Additionally, the project offers numerous technological enhancements over Ethereum and other existing cryptocurrencies. It also aims to create a scalable, interoperable third-generation blockchain.
Use Cases
2. The World Health Organization (WHO) estimates that plenty of medicines sold online can be categorized as fake or substandard. However, this blockchain provides a solution to this problem by authenticating and validating the origin and supply of pharmaceutical products. Hence, it is playing an important role in the safety and well-being of patients worldwide.
3. Atala PRISM is an ID and credentials solution designed on the Cardano blockchain. It secures academic certifications by providing a tamper-proof ecosystem. Moreover, It can also store data such as civic records, health records, career references, memberships, and much more.
Impressively, BeefChain chose the Cardano ecosystem to trace meat from field to fork, which empowers primary producers and conjointly brings transparency to the end customer.
4. This blockchain provides users full control of their credentials, which they can share with anyone and instantly get verified anytime, anywhere. Hence, it streamlines the identity verification process of financial institutions. Additionally, this project solves issues across multiple sectors, which includes government, education, retail, finance, healthcare, and others.
5. The supply chain plays a vital role during this pandemic situation to sustain any sector, not to mention the safety of the community. Therefore, this blockchain is employed by farmers and retailers to trace items from farm to production.
Proof-of-Stake
6. Bitcoin can scale up to 3-7 Transactions Per Second (TPS) and Ethereum around 10-20 TPS. The solution to this problem is Cardano’s Ouroboros proof-of-stake algorithm which can process around 1,000 TPS.
Moreover, Bitcoin networks follow the proof-of-work protocol. However, Cardano relies on the proof-of-stake (PoS) mechanism, which costs less in energy consumption and helps to minimize the transaction fees.
ADA Token
7. The native token of Cardano is ADA. Interestingly, it is named after Ada Lovelace, who was a 19th-century mathematician and is recognized as the first computer programmer. In addition, Cardano has its own official wallet called Daedalus. It is a universal wallet with features such as automated trading, exchanges integration, and crypto-to-fiat transactions. In addition, ADA is also compatible with other wallets, such as Yoroi, Ledger, and Trezor.
8. Interestingly, it is a public distributed network that is run by the people for the people. Moreover, its ecosystem uses ADA to pay for any transaction or deploying a smart contract. Therefore, ADA coins from the users of the network go to people who keep running this network. This unique feature makes it a utility token.
Layer Security
9. Cardano has a distinctive two-layered architecture for safety and scalability. The Cardano Settlement Layer (CSL) handles all the dealings with minimal transaction fees. At the same time, the Cardano Computation Layer (CCL) is a set of protocols that facilitate smart contract optimization. Additionally, It enables developers to create DeFi apps with high security.
10. The Cardano blockchain was recognized by top lawmakers in leading financial jurisdictions such as Switzerland. The team conjointly provides blockchain education and academy platforms for Uzbekistan’s national universities. Additionally, it offers advisory services to develop broad strategic governmental projects using blockchain technology.
Cardano Team
A successful team is a lifeline of any project. Hence, Cardano has top-notch researchers and developers to make this project successful.
The founder of Cardano is Charles Hoskinson. He is a trained mathematician. Previously, he was involved in the early development of Bitcoin and co-founded Ethereum. Additionally, he was also the founding chairman of the Bitcoin Foundation’s education committee.
Recent Development
As DeFi is in demand nowadays, Cardano also working on Goguen upgrade. With this update, users will be able to create their own on-chain tokens for transactions on Cardano. Additionally, these custom tokens can be transacted directly on the blockchain, just like ADA.
In addition, rising gas fees are a serious concern for DeFi protocols as they cost a lot while executing smart contracts. However, on Cardano, transactions between native tokens and assets cost almost zero in fees. Therefore, Cardano makes it more affordable to launch DeFi projects.
Following Goguen, lots of other updates are coming in the near future, such as the Basho era centered around scalability and interoperability improvement, and the Voltaire era will add a treasury system and governance.
Furthermore, with the current updates in Cardano and Ethereum, Cardano looks much stronger than Ethereum in terms of Transaction Per Second (TPS). Also, when it comes to transaction costs, Ethereum lags behind due to its high gas fees.
Cardano Partnerships
1. Wolfram Alpha partnered with InputOutputHK to integrate Cardano blockchain data into its computational technology to provide oracle services for Cardano.
2. Cardano partnered with Shopify to be used as a mode of payment on Shopify stores. Additionally, users can send ADA tokens directly to the stores’ wallets. Effectively, it does not involve any mediator who can see these transactions.
3. SingularityNET, the decentralized AI network, collaborated with Cardano to maneuver a big portion of its network from Ethereum to the Cardano blockchain because of the looming speed and cost issues of ETH.
4. The United Nations and IOHK partnership was created to conduct U.N. new proposals via IOHK’s blockchain-based voting system. Additionally, the team also secured a partnership with Metaps Plus, which is one of the biggest payment platforms in South Korea.
5. Cardano partnered with Bondly Finance to introduce decentralized finance (DeFi) to its blockchain. In addition, Bondly Finance can integrate the support for the Bondly coin into the Cardano network.
6. Cardano and Travala.com partnered to empower travelers to easily book hotels and travel accommodations worldwide using ADA on Travala.com’s online platform.
EMURGO: The Commercial Arm of Cardano
7. EMURGO teamed up with Bidali – a Canadian payment processor that strives for next-generation digital currency payment solutions. With this partnership, ADA holders can directly purchase items from more than 1,200 major retail brands, such as Amazon, Nike, Starbucks, Airbnb, and many more via Bidali’s online gift card platform.
8. EMURGO signed MOUs with the Korea Blockchain Contents Association (KBCCA) and the Korea Mobile Game Association (KMGA) to integrate Cardano’s blockchain-based solutions into the Korean digital content and mobile gaming industries.
9. EMURGO, the commercial arm of Cardano which boosts the platform through commercial ventures, has membership within the Chamber of Digital Commerce – the world’s leading digital trade association.
Technical Analysis
The price of ADA at the time of publication is close to $0.91, with a circulating supply of about 32 billion ADA coins and a maximum supply of 45 billion. The top exchanges for trading ADA are currently Binance, Huobi Global, ZG.com, HBTC, and OKEx.
ADA has already broken out of the consolidation phase and exploded once it broke the resistance of $0.53. According to the weekly chart, its next target is $1.39. If it will flip this resistance, then ADA will enter into a new all-time high territory. According to the fundamentals, it can show a massive rally after that and head towards the $2.20 and $2.70 range.
Conclusion
Since the total number of ADA coins is limited, the demand for this coin keeps on growing. Cardano certainly has the experienced leadership to tackle the next generation blockchain issues. In addition, the decentralized nature of the Cardano blockchain makes it secure, whereas the layered architecture provides scalability. Collectively, these characteristics make Cardano an innovative altcoin with huge potential. Thus, it is an excellent choice for new investors who just entered the crypto space.
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Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided.
Do your own due diligence and rating before making any investments and consult your financial advisor. The researched information presented we believe to be correct and accurate however there is no guarantee or warranty as to the accuracy, timeliness, completeness. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd. All rights reserved.
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