7 myths and truths about Cardano – DiarioBitcoin

For Angel Di Matteo @shadowargel

These are some myths and truths around Cardano, the project Blockchain whose token catches the attention of many investors and enthusiasts.

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Although a few years ago it went unnoticed, today a project Blockchain that catches the attention of many people within the ecosystem of digital currencies is Cardano, whose token THERE IS It recently reached new all-time highs and about which there are many medium and long-term commercial expectations.

However, despite the recent uproar that so much Cardano as the token THERE IS generated in the main communities, there are still many myths and vague beliefs among those who support and do not support the project.

Here we reveal some myths and truths of Cardano, the project Blockchain which is very popular these days in the digital currency space. With this we begin a new section in Daily bitcoin where we will answer what is true in some rumors that are spread within the crypto ecosystem.

1. Cardano has had a better commercial evolution than Bitcoin is 2021

Certain!

Although the price of Bitcoin is currently close to USD $ 60,000 and that of Cardano It is barely close to USD $ 1.4, if we evaluate the percentage growth that these cryptocurrencies have had throughout 2021 we have to THERE IS has had a much more pronounced performance than BTC.

We can verify this by contrasting the graphs corresponding to both cryptocurrencies.

BTC price evolution in 2021
Evolution in the price of BTC in 2021
ADA price evolution in 2021
Evolution in the price of ADA in 2021

Seen more clearly, if a person had invested USD $ 1,000 in any of these cryptocurrencies on January 1, by the time of publication they would have capitalized the following earnings:

  • With BTC would be about USD $1.720 – Net Balance USD $2.720
  • With THERE IS would be about USD $7.777 – Net Balance USD $8.777

2. Cardano it’s just a copy of what Ethereum offers

Fake!

Although Charles Hoskinson (CEO of IOHK and main developer of Cardano) worked on the development of Ethereum, The idea that he has been promoting for years with his team varies completely to what the network of the second most reputable digital currency offers today.

In this sense, among the aspects that differentiate Cardano from Ethereum the following stand out:

  • Cardano It is a project that started from scratch, and it took about two years to create and launch the first version of the network. This takes a lot more work than just making a Fork (alternate version) of Ethereum, for which the code is simply copied and the desired changes are implemented.
  • The project Cardano is programmed in a language called Haskell, which varies substantially with respect to what it allows Solidity for Ethereum.
  • The consensus algorithm of Cardano is called Ouroboros, which is based on Proof-of-Stake (PoS) y allows network participants to derive profits by placing funds as collateral. This differs from Proof-of-Work (PoW) employed by Ethereum where miners must have specialized hardware to perform this task.
  • The goal of Cardano is to become “The Internet of Blockchain”, so its ultimate goal is to achieve interoperability with many other networks. Ethereum Its idea is to become the universal computer, which serves as a support for all applications based on block technology.

Starting with these basic aspects, it is understood that both projects develop in very different ways and go along different paths.

3. The development of Cardano it is very slow

Certain!

While seen from the outside Cardano does not progress as fast as other initiatives within the sector Blockchain, Optimal product development under strictly scientific principles is more important to Hoskinson and his team than launching something that could be buggy and require major patches.

In this regard, Hoskinson has commented in the past that for himl “means nothing” be the first within the industry to push proposals, since it does not perceive “Like a competition” choosing a network Blockchain or other.

However, the team of Cardano It has been characterized by being very transparent when it comes to talking about the evolution of the project, with Hoskinson the one who mainly has close contact with the community to report on weekly / biweekly progress. At the same time, the roadmap for the development of the network has been kept intact and the developers work towards achieving the objectives set out there at the rate that guarantees the optimal operation of the updates.

4. Cardano has no use case

Fake!

Given the Cardano is a project that is currently about to reach the third phase of its development, at the moment it does not yet have support for smart contracts so that interested parties can start operating their products and services based on Blockchain.

However, the digital currency THERE IS by itself has functions similar to those of Bitcoin and other exponents of the market, so it is possible to send, receive and store tokens, in the same way you can save, and you can even generate profits by making staking (putting funds as collateral) to support the network processing blocks. It is worth noting that currently its Blockchain it also has support for community voting (Catalyst), and recently after the update “Mary” It already supports the creation of new digital assets natively.

Regarding its development, Cardano has successfully completed the phases Byron (network start) and Shelley (decentralization and staking). The team is currently preparing for the launch of Goguen (smart contracts), where the network will have support for various use cases such as decentralized applications (Dapps), exchanges decentralized (DEX), decentralized finance services (DeFi) and many others.

Thinking ahead, Hoskinson and his team have been moving forward in efforts to establish alliances with governments and private projects, precisely to support them in the development of solutions once the network has support for it. In this regard, the main developer of Cardano has already announced that around 100 operational projects on Ethereum they would be ready to migrate once the update arrives Goguen.

In addition, it is working with African countries on projects to use Cardano on issues of citizenship digital identity.

5. Cardano it will be the network Blockchain which will surpass Ethereum

We do not know!

While it is indisputable that Ethereum functions as the network with the largest number of decentralized applications and use cases among the Blockchain Currently the network faces problems in terms of scalability and cost of operations, which has generated operational problems for many projects due to speed and solvency issues.

Given the Cardano not yet in a development phase where it can support smart contracts, it is still too early to project whether this network will outperform Ethereum in terms of support for use cases and initiatives based on Blockchain, although many are waiting to see if this will finally happen when the update of Goguen.

Currently, there are certain networks with support for smart contracts that are gaining a lot of popularity among projects interested in operating with Blockchain, among which stand out Binance Smart Chain (BSC), Polkadot, Avalanche, NEM, Stellar, TRON and others more.

On the other hand, the team of Ethereum It is working on the development of version 2.0 for its network, for which they launched, at the end of last year, Phase 0 of the project, thus enabling the guarantee funds system. There is still time to see operational results, but these are expected to arrive in the next two years.

6. Each THERE IS will be priced at more than USD $ 100

It is unlikely to happen!

Although the price of any asset in the market is mainly regulated by supply and demand, an important aspect to guarantee the value of any token has to do with the number of units in circulation.

In this sense, we see that the total of THERE IS circulating in the market exceeds 31,948 million units. This figure notably exceeds the more than 18.6 million BTC and the 115.1 million ETH issued, and said coins they have the value they have in the markets mainly because of scarcity.

Total circulating ADA vs. other cryptocurrencies CoinMarketCap
Total circulating ADA versus other cryptocurrencies. Image from CoinMarketCap

The idea that THERE IS may reach higher prices than the current ones, but the fact that it reaches around USD $ 100 per unit seems unlikely considering that there are still many more tokens to be issued, since its maximum cap is set at about 45,000 million.

7. What about THERE IS it’s just another financial bubble

It is relative!

The commercial evolution of all cryptocurrencies is strongly associated with a speculative theme, and THERE IS from Cardano is no exception.

We have seen how certain announcements have positively benefited the digital currency. For example, its recent incorporation into the commercial listings of Coinbase Y Coinbase Pro, as well as the announcements of important companies interested in saving funds THERE IS. However, what has been seen regarding Cardano is that its growth has followed a fairly organic pattern, mainly attached to the announcements associated with its launches and updates.

We reiterate that although projections are made in the short, medium and long term, no one knows exactly what may happen to the price of a digital currency, since its price is subject to many variables that are not under the control of the development team.


If you want to know more about Cardano, We recommend the readings below:


Article by Angel Di Matteo / Daily bitcoin

Illustration by Charles Hoskinson by @nicole_draw

We would love to give thanks to the writer of this post for this remarkable content

7 myths and truths about Cardano – DiarioBitcoin

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