Cardano is one of the oldest crypto projects but is new in many aspects. It serves as a third-generation public blockchain and decentralized application platform. It also made history as the first blockchain to include a peer-reviewed research strategy within its architecture.
Six years after its initial launch, we look at five reasons investors are potentially considering investing in Cardano (ADA).
Decentralized Finance Adoption
For those that don’t know, decentralized finance is one of the most popular trends in the cryptocurrency industry. This is because of the immense potential it provides for anyone to access banking products without any restrictions.
Cardano is built with decentralized finance in mind due to its fast and scalable blockchain. Developers can build products that are cheaper to use, unlike other blockchains like Ethereum that have high transaction fees.
Work in Emerging Markets
Cardano is one of the pro-active blockchain projects that has dedicated time and resources to emerging markets globally. Emurgo, the commercial and venture arm of Cardano, made a huge splash in 2019 with the announcement that it was launching its blockchain academy unit in India. India is regarded as one of the top tech regions globally, and Cardano has fostered blockchain adoption in the Asian nation.
Cardano’s partnership with the Ethiopian government in 2021 put the crypto world on notice. Five million Ethiopian students will receive a Cardano blockchain-based ID that will allow the Ethiopian education ministry to track their performance. Students’ data will be recorded on the Cardano blockchain, and over 750,000 teachers can access the information.
Cardano Foundation has also incubated several projects in Africa, which is likely to drive adoption for ADA tokens in top markets like Nigeria and South Africa. Many of these markets likely will skip the adoption of credit cards, and go straight into digital currency based financial services.
Haskell Programming Language, Formal Verification
Cardano uses the Haskell programming language, which serves as the bedrock for the smart contract’s programming language Plutus. Haskell is regarded as one of the purest programming languages, and Cardano intends to transform how applications are created on its blockchain.
Haskell is important due to its high degree of formal verification. This enables cardano developers a higher degree of certainty that what they programmed is correct. This, according to Cardano, will ensure that Cardano’s smart contracts can be carefully implemented without any vulnerabilities common on other blockchain.
Haskell ensures that the Cardano network is one of the safest blockchains for developers and programmers.
Proof of Stake – Ouroboros
Cardano was one of the first blockchain platforms to come up with the concept of Proof-of-Stake. Popular blockchains like Bitcoin and Ethereum use the Proof-of-Work consensus to secure their blockchains. While this works, it has its cons, namely energy inefficient and requiring power machines to secure the network.
Cardano’s Ouroboros proof of stake mechanism is scalable and can process up to 1,000 TPS (transactions per second). In contrast, Bitcoin is 3-7 TPS and Ethereum 10-20 TPS (although not factoring in Layer 2 technology or Ethereum 2.0). This is the primary reason why transactions are slow to confirm on the two blockchains.
One of the features of new crypto projects is the prevalence of anonymous founders and team members. While this appeals to core crypto enthusiasts, it constitutes a red flag for investors unless the asset is Bitcoin.
Cardano founder Charles Hoskinson is a well-known and respected figure in the crypto industry. He was among the co-founders of Ethereum and regularly provided updates on the state of the Cardano ecosystem.
As earlier mentioned, Cardano is one of the few crypto projects that can boast a peer review from Academics. Several academics are involved in the project, which lends credence to the blockchain.
Cardano represents a good investment choice for investors that want a project that has stood the test of time. The native token ADA has a limited total supply, and demand for the coin keeps rising, which is likely to correlate in the cardano price surge. Cardano has the necessary leadership and blockchain architecture geared towards taking advantage of DeFi and Web 3.0
Tax Free Cardano
If you are interested in buying Cardano (ADA) on a 24/7 Crypto IRA trading platform, head to www.iTrustCapital.com
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