Cardano: the cryptocurrency system that grew the most in 2021

The Blockchain project that attracts the attention of many people within the ecosystem of digital currencies is Cardano, whose ADA token recently reached new all-time highs and about which there are many commercial expectations in the medium and long term.

However, despite the recent buzz that both Cardano and the ADA token generate in major communities, there are still many vague myths and beliefs among those who support and do not support the project.

Diariobitcoin.com reveals some myths and truths of Cardano, the Blockchain project that is enjoying great popularity these days in the space of digital currencies.

1. Cardano has had a better commercial evolution than Bitcoin this 2021 Right! Although the price of Bitcoin is currently close to USD $ 60,000 and that of Cardano is barely close to USD $ 1.4, if we evaluate the percentage growth that these cryptocurrencies have had throughout 2021 we have that ADA has had a much better performance pronounced than that of BTC.

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 it would be about USD $ 1,720 – Net Balance USD $ 2,720

With ADA it would be about USD $ 7,777 – Net Balance USD $ 8,777

2. Cardano is just a copy of what Ethereum offers False! Despite the fact that 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 in the world. present. In this sense, among the aspects that differentiate Cardano from Ethereum, the following stand out:

Cardano is a project that started from scratch, and it took around two years to create and launch the first version of the network. This involves much more work than simply making a Fork (alternate version) of Ethereum, for which you simply copy the code and implement the desired changes.

The Cardano project is programmed in a language called Haskell, which varies substantially from what Solidity allows for Ethereum.

Cardano’s consensus algorithm is called Ouroboros, which is based on Proof-of-Stake (PoS) and allows network participants to derive profits by placing funds as collateral. This differs from the Proof-of-Work (PoW) used by Ethereum where miners must have specialized hardware to carry out this work.

Cardano’s goal is to become “The Internet of Blockchain”, so its ultimate goal is to achieve interoperability with many other networks. Ethereum’s 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. Cardano development is very slow Right! Although seen from the outside, Cardano does not advance as fast as other initiatives within the Blockchain sector, for Hoskinson and his team the optimal development of the product under strictly scientific principles is more important than the launch of something that could be flawed and require major patches.

In this regard, Hoskinson has commented in the past that for him “it does not mean anything” to be the first in the industry to promote proposals, since he does not perceive “as a competition” the fact of choosing one Blockchain network or another. Cardano’s Charles Hoskinson indicated that being first does not ensure any monopoly for Ethereum.

However, the Cardano team has been characterized by being very transparent when talking about the evolution of the project, being 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 False! Given that 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 Blockchain-based products and services over the network.

However, the ADA digital currency 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 staking (putting funds as collateral) to support the network processing blocks.

It is worth noting that currently its Blockchain also has support for voting by the community (Catalyst), and recently after the update “Mary” already supports the creation of new digital assets natively.

Regarding its development, Cardano has successfully completed the Byron (network start-up) and Shelley (decentralization and staking) phases. 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), decentralized exchanges (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 would be prepared to migrate once the Goguen update arrives.

5. Cardano will be the Blockchain network that will surpass Ethereum We don’t know! Although it is indisputable that Ethereum functions as the network with the largest number of decentralized applications and use cases among the existing Blockchains, currently the network faces problems in terms of scalability and cost of operations, which has generated operational inconveniences for many projects by subject. speed and solvency.

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

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

On the other hand, the Ethereum team 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, with which the guarantee funds system was enabled. There is still time to see operational results, but these are expected to arrive in the next two years.

6. Each ADA will be priced at more than USD $ 100. It is unlikely to pass! 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 ADA circulating in the market exceeds 31,948 million units. This figure notably exceeds the more than 18.6 million BTC and 115.1 million ETH issued, and these coins have the value they have in the markets mainly due to scarcity.

Total circulating ADA versus other cryptocurrencies CoinMarketCap Total circulating ADA versus other cryptocurrencies. Image of CoinMarketCap The idea that ADA could reach higher prices than the current ones is not ruled out, 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 The maximum ceiling is set at about 45,000 million.

7. What happens with ADA is just another financial bubble. It is relative! The commercial evolution of all cryptocurrencies is strongly associated with a speculative topic, and Cardano’s ADA is no exception. We have seen how certain announcements have positively benefited the digital currency.

For example, its recent listing on Coinbase and Coinbase Pro trading listings, as well as announcements from major companies interested in holding ADA funds. 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 short, medium and long-term projections are made, 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.

We would like to say thanks to the author of this write-up for this outstanding material

Cardano: the cryptocurrency system that grew the most in 2021

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