Does Cardano (ADA) have a future?
Before jumping into whether Cardano (ADA) has a future, it’s essential to have a solid understanding of what it is and how it influences the market. Cardano launched in 2017, with actual trading at approximately 10 cents into early 2021. Currently, it’s holding at roughly $1.22. It’s now resting at 2.80% of market dominance.
Considered one of the more ambitious cryptos, it comes with a pedigree other currencies have not achieved so far. Some explain that the pedigree stems from Cardano’s blockchain platform. The native cryptocurrency, called Ada, is named after the 19-century mathematician. Cardano is currently known as being one of the most ecologically mindful cryptocurrencies. It’s holding firm despite market troubles in previous years.
Perhaps the more defining is the current approach used with computation. Bitcoin currently uses a ‘proof of work’ methodology, requiring complex calculations to establish new units. On the other hand, Cardano runs with a ‘proof of stake’ capability to run the blockchain. Common problems associated with other cryptocurrencies, like scaling and demands on electricity, are bypassed with Cardano’s technique.
Where Cardano’s Crypto Coin Sits Currently
The current native crypto coin, ADA, is considered a unit of value, identical to stocks, commodities, and other currencies like Bitcoin. It is tradeable and currently sits as the fourth most popular asset. Individuals can either stake their ADA as traditional finance (TradFi) to “earn interest” or stake them in the blockchain mechanism, which offers its reward system.
Currently, those who decide to put their ADA in staking a pool will receive an annual return of 5-6%. That’s not a bad return for those willing to hold. These values are expected to climb, with some experts foresee a growth of $2-$3, particularly as new updates and launches are anticipated in the future.
Understanding Crypto Mining and Claiming Stake
Simply put, successful mining in Proof of Stake systems (PoS) is determined by the amount of crypto held by a miner (or group of miners). This method is carried instead of completing complex calculations. It’s considered a polarizing method with crypto evangelists. Some claim POS to be easily controlled by stakeholders; others question the actual level of security.
Founder, Charles Hoskinson, believes the system allows increased accessibility, particularly in developing and emerging economies. These economies don’t have significant access to equipment, power, or experience. The PoS protocol brings a secure answer to energy-use challenges and performance; it offers a more sustainable solution overall.
The Difference Between Standard Crypto and Cardano Methodology
Generally speaking, mining crypto requires the solving of complex equations. The currency is offered as a reward system for doing so. Rather than depending on the miner’s capacity to solve complex equations, PoS selects individuals (called stake pools) to create new blocks. These are determined by the stake they control in the network. As a result, networks continue to scale horizontally, adding participants to pools called nodes. This shifts from the traditional method of growth (vertically) and the increased computing power that it requires.
How to Track Cardano Growth Long-term
As Cardano is a public, open-sourced blockchain platform, it allows peer-to-peer transactions. ADA is the native token for Cardano’s cryptocurrency. Those looking to track the growth of the cryptocurrency can reference a Cardano to Cad Chart. ADA can be used for staking in the ecosystem or conducting transactions. Currently, gains on the currency have been positive, with expected growth to continue. Some suggest that ADA could reach the $2.00 mark for the trading price, but it’s unlikely it will surpass this mark soon.
How does Cardano Differ from Other Currencies?
Although the developers of Cardano are most frequently known for ADA, the company aims to extend beyond the cryptocurrency platform. Current projects include anti-counterfeit operations, logistics, and supply chains, identity protection, verification of medicines, and eventually establishing blockchain-enabled voting for electoral systems.
Cardano Pushes Beyond Standard Methods of Mining
It appears that Cardaro is less interested in competing for market share, which can seem alarming to some investors. Rest assured that a more substantial interest in a decentralized future can make for a strong cryptocurrency. The company wants to build and deliver best-in-class components. Instead, they’d focus their attention on cooperation and interoperability for all users, establishing strength for the entire blockchain industry. As a result, the improvement and adoption of blockchain technology will continue to flourish as a whole.
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