Is Cardano a wise cryptocurrency which you can purchase proper now? – The motley idiot

Advertisements

In the past few years, the cryptocurrency space has gotten pretty crowded. Gone are the days when few digital assets dominated the headlines. There are now over 8,000 different crypto assets, and new tokens are being added all the time. Of course, the crypto market itself has already created enormous fortunes and has grown 240% in the last year alone. But given the sheer volume – not to mention the hysteria around meme tokens like Shiba Inu and Dogecoin – it can be difficult to separate the good from the bad.

Besides that, Cardano (CRYPTO: NO) stands out from the pack. Not because of its functionality – at least not yet – but because of its experienced development team and its strong growth strategy. Does that mean Cardano is worth buying? Let’s take a closer look.

A group of investors gathered around a computer.

Image source: Getty Images.

The value proposition

In 2015, ex-Ethereum founder Charles Hoskinson started the Cardano project together with his former colleague Jeremy Wood. Two years later, the Cardano blockchain (powered by the ADA token) debuted with the first peer-reviewed consensus protocol: a kind of Proof of Stake (PoS) known as Ouroboros.

Compared to Ethereum, which relies on an energy-intensive proof-of-work consensus, Cardano’s PoS consensus makes it more environmentally friendly and sustainable. In addition, the development team is in no rush to implement new features, but instead bases each decision on academic research, dividing the Cardano project into five phases dealing with its creation, decentralization, smart contracts, scalability and governance.

The project is currently in phase three and the blockchain was expanded to include smart contract functionality in September 2021. dApps), including decentralized financial applications (DeFi). Of course, this functionality is new, which means that Cardano’s dApps ecosystem is pretty limited compared to other blockchains like ether and Solana. But that should change in the future.

There is one more point to keep in mind. Cardano was clocked at 257 transactions per second (TPS) – that makes the platform much faster than Ethereum, which can process around 30 TPS. But it pales in comparison to VisaTheoretical limit of 24,000 TPS. If Cardano is to achieve widespread adoption, it has to be faster (i.e., more scalable).

Phase four will solve this problem with the implementation of Ouroboros Hydra, an updated version of the consensus protocol. In particular, Hydra allows multiple side chains to be added to the main block chain, which distributes the network load more efficiently. Hydra is still under development, but simulations have clocked side chains at 1,000 TPS, and with 1,000 side chains, Cardano could theoretically support 1 million TPS in the future.

Woman analyzing graphs on her computer.

Image source: Getty Images.

The investment thesis

Cardano is certainly a more speculative bet than other cryptocurrencies, and that says something. However, the academically motivated development team is pursuing an intelligent growth strategy. Assuming Cardano keeps its promise of enormous scalability, the platform could be very popular with dApps manufacturers and DeFi investors in a few years.

In this sense, increased acceptance of services on the Cardano blockchain would lead to more transaction fees, which means higher demand for the underlying ADA token. That should drive the price up over time. Likewise, owning ADA tokens makes you a stakeholder in the network. You could create your own stake pool to verify transactions and secure the blockchain, or you could just borrow your tokens to an existing stake pool – either way, you would be earning rewards.

All of this, of course, depends on Cardano achieving the required scalability and adoption by both dApp developers and consumers. But with 4,000 projects in the works right now, I think it’s not far to envision Cardano as a thriving ecosystem in a couple of years. That is why this cryptocurrency looks like a smart long-term investment.

This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all reflect critically about investing and make decisions that will help us get smarter, happier, and richer.


Share post on

Sonic BTC is reader-supported. When you buy through links on our site, we may earn an affiliate commission.

Cardano Devs IOG Shared First Details of Third-Party Codebase Audit – U.Today Cardano

Cardano Devs IOG Shared First Details of Third-Party Codebase Audit – U.Today

Vladislav Sopov Input Output Global's peer-to-peer networking infrastructure underwent stress tests: engineers content Very...

By wpadminsonic164
Cardano Whale Transactions Hit 4-Month High – The Coin Republic Cardano

Cardano Whale Transactions Hit 4-Month High – The Coin Republic

ADA Price at the time of writing – $0.5604It's market cap is down by...

By wpadminsonic164
Neue Kryptowährungen 2022 – Neue Coins mit Potential kaufen – Cardano Feed Cardano

Neue Kryptowährungen 2022 – Neue Coins mit Potential kaufen – Cardano Feed

The crypto market is booming and it’s not just Bitcoin, Ethereum or Ripple that...

By wpadminsonic164
Here is How Bitgert Is Overtaking Cardano and Solana In Such A Quick Interval – Cardano Feed Cardano

Here is How Bitgert Is Overtaking Cardano and Solana In Such A Quick Interval – Cardano Feed

The Bitgert project has done so much within a short time of about 200...

By wpadminsonic164
Acorda Therapeutics Now the Least Expensive versus Cardano This Year – Nasdaq Cardano

Acorda Therapeutics Now the Least Expensive versus Cardano This Year – Nasdaq

Here at CryptocurrenciesChannel.com, we find it interesting to track various ETF and stock prices...

By wpadminsonic164
4 million resources gave on Cardano biological system according to Charles Hoskinson – The Coin Republic Cardano

4 million resources gave on Cardano biological system according to Charles Hoskinson – The Coin Republic

Cardano organizer Charles Hoskinson answers a pundit who guarantees that his July 2020 forecast...

By wpadminsonic164
Cardano

Cardano cost investigation: ADA dismissed at $0.600, downwards development to follow – Cryptopolitan

TL;DR Breakdown Cardano price analysis suggests a downwards movement to $0.500The closest support level...

By wpadminsonic164
Crypto’s Present Power;  Cosmos Outperforms, Tether, Cardano Weak – Goodreturns Cardano

Crypto’s Present Power; Cosmos Outperforms, Tether, Cardano Weak – Goodreturns

Business oi-Roshni Agarwal | Published: Thursday, January 20, 2022, 23:32 [IST] As per Coinmarketcap.com,...

By wpadminsonic164

Latest Posts

Cardano Devs IOG Shared First Details of Third-Party Codebase Audit – U.Today Cardano

Cardano Devs IOG Shared First Details of Third-Party Codebase Audit – U.Today

Vladislav Sopov Input Output Global's peer-to-peer networking infrastructure underwent stress tests: engineers content Very...

By wpadminsonic164
5 Trillion Shiba Inu Selling | Luna Delisting | China & Bitcoin Videos

5 Trillion Shiba Inu Selling | Luna Delisting | China & Bitcoin

Hey Everyone Kaise hain aap Sab Telegram Channel - https://t.me/oyeeerahul1 Twitter - https://twitter.com/oyeee_rahul SIP...

By wpadminsonic164
Digital currency Prices Today May 19: Bitcoin drops, Ether stoops more than 4%; Polkadot greatest drag – Moneycontrol Polkadot

Digital currency Prices Today May 19: Bitcoin drops, Ether stoops more than 4%; Polkadot greatest drag – Moneycontrol

a,.special_wrapbx a{color:#333;font:400 11px Lato,sans-serif}.user_after_login a, .user_before_login a {color: #333333;font: 11px 'Lato',sans-serif;}.dropdown-menu{display:none;background-clip:border-box!important}.header_desktop .dropdown-menu>li{border-bottom:1px solid #e9e9e9}.header_desktop...

By wpadminsonic164
XLM Price Analysis: Bearish feeling yet to die down for Stellar – The Coin Republic Stellar

XLM Price Analysis: Bearish feeling yet to die down for Stellar – The Coin Republic

No result View All Result © Copyright 2022. The Coin Republic Are you sure...

By wpadminsonic164
Crypto Flipsider Information – Crypto.com Suspends Withdrawals, Loses $15M, Binance’s Thai Alternate, $792M in BNB Burned, EIP-1559 Dwell on Polygon, Spain and Singapore Crypto Advert Ban, Bulgaria and UK Prime Crypto Holding by DailyCoin – Investing.com Binance

Crypto Flipsider Information – Crypto.com Suspends Withdrawals, Loses $15M, Binance’s Thai Alternate, $792M in BNB Burned, EIP-1559 Dwell on Polygon, Spain and Singapore Crypto Advert Ban, Bulgaria and UK Prime Crypto Holding by DailyCoin – Investing.com

Crypto Flipsider News – Crypto.com Suspends Withdrawals, Loses $15M, Binance's Thai Exchange, $792M in...

By wpadminsonic164
Larry Ellison, Binance and Sequoia back Elon Musk’s $44bn Twitter offered – Financial Times Binance

Larry Ellison, Binance and Sequoia back Elon Musk’s $44bn Twitter offered – Financial Times

Elon Musk has raised $7.14bn of funding for his $44bn buyout of Twitter from...

By wpadminsonic164
New cryptocurrency race for the place of the Dogecoins – The 1000% positioned HUH token, the thetan enviornment and the magic token |  BTCMANAGER – BTCMANAGER Dogecoin

New cryptocurrency race for the place of the Dogecoins – The 1000% positioned HUH token, the thetan enviornment and the magic token | BTCMANAGER – BTCMANAGER

HUH token, Thetan Arena and Spell Token have proven to be hugely popular, although...

By wpadminsonic164
Cardano Whale Transactions Hit 4-Month High – The Coin Republic Cardano

Cardano Whale Transactions Hit 4-Month High – The Coin Republic

ADA Price at the time of writing – $0.5604It's market cap is down by...

By wpadminsonic164