The cryptocurrency market is a vibrant space that is constantly evolving. Projects that were in the top 10 five years ago are nowhere to be found. This allows for near maximum efficiency where the best solution rises to the top.
With the digital economy branching out to many aspects of everyday life, smart contract platforms are gaining ground. Ethereum is the largest such project but other innovative crypto enterprises are creeping up.
What is Cardano?
Cardano goes hand in hand with the concept of smart contracts. To better understand this, the experts at SoFi describe a smart contacts as:
a program that initiates a digital transfer between parties when specific conditions have been met. It’s not unlike a regular, written paper contract. The big difference lies in the fact that smart contracts require no third-party intermediary and can be programmed to execute automatically when the right conditions are met.
So, what is Cardano? Cardano is the open-source blockchain platform that was developed by former Ethereum co-founder Charles Hoskinson. The Cardano framework supports smart contract applications that consumers, companies and governments can use to transact with one another.
As with all crypto projects, Cardano has a token on which the functionality of the framework operates. This token is ADA, a cryptocurrency with the potential to become the standard in financial and other transactions.
7 Things to Consider When Investing in Cardano
Cardano is set on changing the world with its cutting-edge technology. Prospective investors should consider a list of factors when thinking about Cardano.
As with many other crypto projects, Cardano has a limited supply. With 45 billion Cardano being the max supply, its deflationary nature means that an increase in demand will drive price higher.
One of the biggest problems that Bitcoin has is the ability to scale. Bitcoin’s proof of work framework makes it difficult to achieve the hundreds of thousands of transactions per second necessary for widespread adoption. Cardano, on the other hand, has the inherent ability to scale up as required.
Another criticism regarding projects like Bitcoin centers around energy efficiency. Cardano is thousands of times more efficient than Bitcoin and Ethereum. This is a strong argument in favor of Cardano in a world that is transitioning to a greener model.
Hoskinson, the founder of Cardano, is a well-respected member of the crypto community. His presence is one of the biggest assets of the project. Investors and ADA holders feel a greater level of security with him at the helm.
Cardano can be used for anything from finance to agriculture. Its multi-purpose nature means that wide adoption will drive the price higher if the project reaches the levels of success it’s shooting for.
The Cardano team isn’t resting on its laurels. A focus on moving forward slowly and steadily means that all security issues are dealt with fully. It also means that the potential exists for wider adoption in the future.
Due to its availability on many large exchanges, ADA is easily accessible to people that want to trade it.
Jumping on the Cardano Train
If Cardano manages to accomplish a fraction of what it’s setting out to, the project will be a mainstay soon. The advantages Cardano holds over other smart contract platforms make it a competitor to be reckoned with.