The cryptocurrency scene is filled with start-ups and companies that are looking to get a portion of Bitcoin’s market share. Few have ever gone head-to-head with Ethereum, and with good reason: creating a platform capable of developing decentralised applications (DApps) and smart contracts takes time and lots of sustained effort—it is not an easy proposition. Yet, Cardano is not only aiming to emulate the second biggest cryptocurrency platform in the world but surpass it.
Here is everything you need to know about the platform;
Since its inception, Ethereum has been the foremost platform for smart contracts and decentralised applications (DApps). As with most, the platform has some disadvantages, but because there has been no real competitor in the space, Ethereum’s flaws have mostly been overlooked.
For one, the Ethereum network is quite slow, and there are some questions about its overall security. Secondly, Ethereum uses the proof-of-work protocol, and it is notoriously energy-inefficient, expensive to maintain, and transactions are not as fast as they can be.
Cardano aims to launch a platform that addresses all the flaws that plague Ethereum. Smart contracts and decentralised applications (DApps) can be built on Cardano, but at lower cost, with more security and with better scalability than Ethereum. This is quite impressive if you consider the fact that Ethereum is the fastest growing cryptocurrency platform of 2017.
Also, Cardano uses the superior proof-of-stake mechanism, meaning better energy efficiency and faster transactions.
Cardano was launched by IOHK, a blockchain development firm under the leadership of early founder and former Ethereum CEO, Charles Hoskinson.
The company is being managed by The Cardano Foundation, led by Chairman, Michael Parsons (FCA). Parsons has over 25 years’ management and consulting experience in the banking industry. He is one of the leading experts in blockchain-technology (and how they can be applied to financial solutions) in the U.K.
He is joined on the foundation by other equally qualified and experienced professionals.
The current cryptocurrency market cap exceeds $500 billion, meaning new entrants into the market have ample room for growth. Furthermore, by positioning itself as a direct competitor to Ethereum, the world’s second biggest crypto company with a market cap of over $68 billion, Cardano is targeting a segment that holds over 13% (and growing) of the total cryptocurrency market share.
If they can deliver everything they are promising and successfully pull users off the Ethereum platform, then Cardano may be the next big thing in the cryptocurrency sphere.
As mentioned above, Cardano is going after one of the biggest boys in the market, and they believe they have the personnel and the technology to compete favourably. The biggest challenge they are likely to face is: Ethereum is in the process of converting from Proof-of-work (PoW) to Proof-of-stake (PoS), removing a chunk of the advantages that Cardano’s platform has over it.
However, Cardano still has enough extra functionality that it stands as a notable alternative to Ethereum, and in a market segment worth ~$70 billion, that is not a bad thing at all.
With its platform, Cardano is creating a “stage” for even more blockchain-based applications. While their main focus is building a decentralised economy that will modify the finances of developing markets, the platform has the potential for much more.
Cardano was also built with regulatory oversight, along with sufficient protection for the privacy of their users. By doing this, they are attracting a portion of the world population that are wary of how regulations may affect their crypto investments.
Furthermore, Cardano is one of the first cryptocurrency platforms whose wallet has an in-built cryptocurrency-to-fiat exchanger, making its use very convenient for customers.
Cardano’s token, ADA, was released for trading in October 2017, and since then, the cryptocurrency has grown by over 1600%. Early investors have undoubtedly made back their original investments, and prospective investors will be encouraged by how fast and steadily the company is growing.
Cardano has a very public foundation with well-known members, they have a community on social media (Facebook, Twitter, and Slack, to mention a few). Their code is also open-source, and they have a GitHub page where their codes and smart contracts are available for scrutiny and contribution.
For now, their computation layer is still in the works, so DApps cannot be developed on the platform yet, however, their settlement layer is fully-functional, meaning you can buy, sell, and trade ADA.
Likelihood of Critical Mass
Cardano was launched in September 2017, and they’ve scheduled the completion of their computation layer for 2018. As a result, the platform is far from achieving critical mass. However, Cardano was built with a democratic governing system that will allow the project evolve independently over time, using a revolutionary treasury system to fund itself and ensure sustainability.
How long the platform will take before amassing enough users to achieve self-sustainable growth is unknown at this time, but given how fast Cardano has been growing, and how well it was designed, attainment of critical mass is a matter of when not if.
In Conclusion, Cardano is an interesting investment option. To be regarded as a notable rival to Ethereum is no easy feat, but to come out with a—arguably—better platform shows a well-run and well-executed operation. All these, combined with ADA’s current growth points to a promising cryptocurrency platform and (token).
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Disclaimer: The information contained herein is not intended to be a source of advice and the information and/or documents contained in this website do not constitute investment advice.