Cardano. Characteristics and Prospects

Colin Baseman

Cardano cryptocurrency showed a powerful launch and quickly entered the TOP of digital coins. Get acquainted with its advantages, disadvantages and prospects.

The decentralized Cardano network is open source and public blockchain. The developers have created a platform with smart contracts, which provides improved features compared to other working protocols. Cardano team includes experienced engineers and researchers from around the world.

Key Features of Cardano

If we talk about technology, Cardano has a 2-tier architecture that divides the blockchain into 2 layers:

  • Base layer. Used to distribute ADA coins.

  • Layer for smart contracts. You can read more about what smart contracts are in the article “What is a smart contract?”

Cardano platform operates on the basis of the delegated PoS algorithm; it conducts thousands of transactions per second. The developer plans to increase significantly the scalability of the Cardano coin and its performance.

All steps in the development of Cardano and promotion of the coin are taken on the basis of the results of the general voting of the community, on which each owner of the ADA coin received the right to vote. Thanks to a democratic approach, abuse of management team is prevented.

Project development

The Cardano project was launched in 2014. Both experienced and qualified programmers and large investors participated in it. Due to this, from the very beginning, the site received a powerful development. Its owners developed the platform in three directions:

  •  Creation of basic nodes. Charged by IOHK.

  • Ada coin promotion on cryptocurrency exchanges. Cardano Foundation works on it.

  • Promotion of the system at the blockchain technology market. The activity is entrusted to Emurgo, created specifically for this purpose.

Thanks to this division of responsibilities, the Cardano project was able to develop successfully in the initial stages and quickly took a place in the top of cryptographic coins. The current positions of the ADA report on the good investment characteristics of the coin and its prospects in 2020-2021.

Cardano management pays great attention to legitimacy, for this purpose, a full-scale activity is being carried out, which aims to gain approval and control from large regulatory authorities. Cardano's plans are very ambitious - to become the largest blockchain platform in the world and fully operate in the legal field of many countries. This will give legal status to all Internet projects and applications that will operate on the basis of the system. In turn, ADA coins will serve as a payment system approved by many states.

Hallmarks of Cardano

Cardano was developed by Charles Hoskins, who is the CEO of the Ethereum project. The first generation of cryptographic coins is Bitcoin, the second is Ethereum, the third is Cardano. Hawkins notes the increased reliability and security of system transactions, complex smart-contracts, which are based on studies of the reliability of investments.

Cardano blocks are mined using less processing power. When mining, several blocks are formed simultaneously, it is much more productive than Bitcoin. As a result, the speed of transactions increases strikingly.

Cardano is not only a digital coin, but also a technological platform. On its basis, various financial applications work and used by users daily. The goal of the project roadmap is to issue debit cards. They are expected to be associated with the RENA platform. Such a solution will allow you to scale the network and conduct over 100 thousand transactions every second.

Pros and Cons of Cardano

The strengths of the coin include:

  • Scientific substantiation of a protocol providing high protection against cyber attacks. It generates good traffic.

  • Democratic control of transactions and mining. Transactions are monitored taking into account the number of payments, and mining is controlled by the total capacity of the user's equipment.

  • Active use of innovative developments that protect users and ensure the confidentiality of operations.

Disadvantages of Cardano:

  •  Lack of organizational supervision

  • The need to refine the control system

  • Limited opportunities for long-term planning

Long-term forecasts for Cardano

A number of experts expect that in 5 years the cryptocurrency exchange value will rise to $ 10. Such forecasts are based on various factors, including technological developments and a professional team. Against the backdrop of general trends in the digital asset market, the forecast looks very optimistic, although Cardano's ambitions and achievements are impressive.

Would the investments in Cardano be a good solution? There is no analyst who can answer this question exactly. Like all cryptocurrencies, this coin has great risks. Nevertheless, a number of indicators speak in favor of investments in ADA:

  • Security. Many blockchain projects are faced with the fact that scalability reduces security. Cardano on this indicator showed its best side, it became possible due to the use of the Ouroboros protocol.

  • Technology. While Bitcoin and Litecoin allow you to perform only operations with digital coins, Cardano is also a full-fledged platform for creating smart contracts and decentralized applications. Many digital coins, including Ethereum, are only working on a solution to the scalability problem, while Cardano successfully overcame this stage.

  • Wallet. ADA coins can be stored on a Daedalus wallet. The company is working to simplify integration with various applications and design development. This is one of the priority areas of activity at the moment.

Cryptocurrency Cardano has good prospects. The project team is experienced and professional, the platform has been developing dynamically from the very start. Advanced technologies and an innovative approach inspire confidence in the future of cryptocurrencies. Why not to try to make money on it? Even small investments can generate impressive income.