Everything you need to know before investing in CARDANO (ADA) cryptocurrency

Updated-11/07/2021, 21:00 IST

Cardano (ADA) is a third-generation public blockchain and Dapp development platform. The platform earned global media attention as the first blockchain to incorporate a peer-reviewed research strategy into its core principals.  Today, ADA is one of the top cryptocurrencies in the world.

What is peer review research system ??

Reviewers play a pivotal role in scholarly publishing. The peer review system exists to validate academic work, helps to improve the quality of published research, and increases networking possibilities within research communities. Despite criticisms, peer review is still the only widely accepted method for research validation and has continued successfully with relatively minor changes for some 350 years.

What is Cardano (ADA)

Cardano: Fundamental Analysis

Background

Cardano is a blockchain project with over 70% of the total currency, ADA, staked for network validation (a really impressive rate). Part of the reason that so much ADA is staked is due to the cryptocurrency’s lack of smart contracts. While Ethereum has around 5% of its total supply locked as validators, much more ETH is locked in defi applications.

Cardano is a blockchain technology like no other. While Bitcoin is the only network that resulted from original work, many technologies that followed were simply its fork. Conversely, Cardano is a product of peer-reviewed research. The technology is the face of a secure and sustainable blockchain with ground-breaking use cases.

It’s common for investors and analysts to refer to Cardano as a third-generation cryptocurrency. Notably, the first generation of cryptocurrencies such as Bitcoin introduced the world to a secure decentralized cash system. Shortly after its release, Ethereum entered the market with an overall focus on Dapp development. This was the goal of second-generation cryptocurrencies.

Third-generation cryptocurrencies take the lessons learned from Bitcoin and Ethereum concepts and improve upon their shortcomings. Third generations cryptos such as ADA utilize new developments such as layered architecture to improve scalability, security, and sustainability. In this way, they create more usefulness, address flaws, and rectify inefficiencies

What is ADA?

ADA is Cardano’s native token, and required to facilitate transactions on the network. ADA is available from most exchanges, and supported by coinbase wallet as well as the Ledger products (among others).

History of Cardano (ADA)

Cardano entered the market in September 2017. The project’s Founder’s Jeremy wood and Chales Hoskinson both worked on the Ethereum project previously. However, the team split from Ethereum citing differences in goals.

Cardano garnered an immediate following in the crypto space due to its innovations in language and VM design. These additions were a direct response to issues encountered in the Ethereum network. The platform differentiated itself from the competition and began working with professors from universities around the world to incorporate peer-reviewed academic research into its design.

On September 29, 2017, Cardano launched its first application on the mainnet. This marked the start of a successful journey for the team. The following year, Cardano secured multiple high-level partnerships across the academic and FinTech sectors.

In 2019, Huobi listed ADA. At one time Huobi was the largest exchange in China before moving due to regulatory pressure. Shortly after their addition, the world’s largest exchange, Binance added ADA to its platform. The addition helped drive ADA prices to new heights.

Is Cardano (ADA) a good investement ?

Cardano has received a ton of hype so far in 2021, and many fans hail it as the Ethereum-killer. Does Cardano actually have a shot at stealing Ethereum’s market share? And, should it be in your crypto portfolio? Let’s take a look!

Cardano vs. Ethereum

As we all know that, Ether is currently the world’s second-largest virtual currency by market value but still faces some issues regarding the delays along its way to 2.0 overhaul, many investors see Cardano as the solution. Ethereum 2.0 will upgrade Ethereum’s network from proof of work to proof of stake, which may cause Cardano to become obsolete. Cardano can process many more transactions than Ethereum due to its proof of stake consensus, but this may not be the case with ETH2.

Also, Cardano doesn’t have any smart contracts on its network. Smart contracts are a critical factor in the success of a blockchain’s ecosystem. With Ethereum already having more than $30 billion dollars in cryptocurrency locked into smart contracts, Cardano may be late to the parade.

Pros for Cardano :

Cardano is already proof of stake and has a strong development team behind its future upgrades. The project focuses on getting it right the 1st time, whereas Ethereum focuses on trial and error to develop its ecosystem.

Cardano’s separation of the settlement and computation layers results in much lower transaction fees which are already much lower than Ethereum’s.

Cons for Cardano :

Cardano is fighting an uphill battle with an army a tenth the size of Ethereum’s. Competitor Polkadot also has a much larger development team and is growing even quicker. 

Low fees are nice, but low fees also indicate a low level of demand for space on the network. 

Cardano also has yet to implement its own smart contract system, and has no chance to overtake Ethereum’s smart contract market share until they launch.

So, Is Cardano a Good Investment?

Cardano is without a doubt one of the more promising applications in the blockchain space today, with strong fundamentals and a lot of momentum behind the project. But stil it is not recommended buying it without complete knowledge of the market ups and downs.

Where to Buy Cardano (ADA)

BINANCE – Best for, India, Australia, Canada, Singapore, UKand most of the world. USA residents are prohibitedfrom many of the tokens on this platform. Use Discount Code: EE59L0QP for 10% cashback off all trading fees.

KRAKEN is the best option for USA residents.

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