Cardano : Third Generation Crypto Currency Deciphered
With ever rising interest in cryptocurrencies, there is a need to understand about all that these coins have to offer. More importantly, it is now very important to understan what differentiates one coin from the other.
Below, we explore Cardano ADA, a coin from our list of top 10 cryptocurrencies in the world.
Cardano ADA
Even as cryptocurrencies have made their way to glory in the last couple of years, most cryptocurrencies have had chaotic growth trajectories. But they have failed terribly in the protection of their ecosystem from the scars of scandals, hacks, and disagreements.
After launching in September 2017, Cardano’s ADA token mostly remained under the radar of traders until the end of November.
Since then, the cryptocurrency has jumped by 1,520%. With a market capitalization of $18.8 billion, Cardano is the fifth-most valuable cryptocurrency as of this writing.
History of Cardano
After launching in September 2017, Cardano’s ADA token mostly remained under the radar of traders until the end of November.
Since then, the cryptocurrency has jumped by 1,520%. With a market capitalization of $18.8 billion, Cardano is the fifth-most valuable cryptocurrency as of this writing.
Even as they have skyrocketed to prominence in the last couple of years, most cryptocurrencies have had chaotic growth trajectories.
Scandals, hacks, and disagreements that resulted in hard forks have brought a bad rep to their ecosystem.
Cardano is a blockchain project founded by Charles Hoskinson, co-founder of Ethereum, to “provide a more balanced and sustainable ecosystem” for cryptocurrencies.
According to its website, ADA is the only coin with a “scientific philosophy and research-driven approach.”
In practical terms, this means that its open-source blockchain undergoes a rigorous peer-review process by scientists and programmers in academia.
How Does Cardano Work?
ADA is the cryptocurrency behind Cardano, and it is used to receive and send digital funds.
The developers feel that digital cash, like Ada, shows how the money will be in the future. It allows for quick direct transfers with guaranteed security thanks to cryptography.
In order to use Ada, investors must use the Daedalus wallet, which is a hierarchical deterministic, multiplatform, secure wallet designed specifically for this cryptocurrency.
The wallet is simple to install, and it allows you to view everything and even search for transactions. You use it to view specific information concerning the state of the blockchain.
It also features encrypted spending passwords and private keys for added security and the ability to be exported into a paper certificate for cold storage.
Ada redemption can be via unencrypted or encrypted redemption certificates, and users can configure the transaction assurance level.
Cardano Rate Chart
Cardano Facts
| Market Cap | $17,952,188,838 USD |
| Volume | $764,357,000 USD |
| Circulating Supply | 25,927,070,538 ADA |
| Total Supply | 31,112,483,745 ADA |
| Price | $0.692411 USD |
Characteristics
- Last week, Cardano’s ADA token was listed on the futures exchange at BitMEX. This made BitMEX the fifth exchange to list the ADA token since Bittrex did so in October 2017, followed by Upbit, Binance, and Coinnest.
- ADA calls itself the first third-generation cryptocurrency and aims to tackle the scaling and infrastructure problems of bitcoin and Ethereum. Specifically, Cardano aims to solve problems related to scalability, interoperability, and sustainability on cryptocurrency platforms.
- Cardano is often referred to as the “Japanese Ethereum” and reports last year indicated that it was being made available in Japan through ATMs and debit cards.
- Cardano’s ADA has the same flaw as other cryptocurrencies. It has little to show by way of implementation. Regardless, a price comparison website
Should I Invest in Cardano?
Since it was launched just a few months ago and is already approaching the top 10 cryptocurrencies in terms of market capitalisation.
For investors, such a well-performing cryptocurrency can be tempting, and no one wants to lose an opportunity at investing. Before you do that, though, there are a few things you might want to read about it.
This coin ADA was trading at $1.26 on Jan 4, 2018, and plunged to $0.58 on Jan 17, 2018, now you see in a matter of days the kind of decline it witnessed.
Further, the entire concept of cryptocurrencies is in a state of infancy right now. The cryptocurrencies are being transactional purpose and not for people to make capital gains by trading them on the stock exchange.
Critics have charged that an approach modeled on Proof of Stake could end up as a plutocracy, where nodes with the highest stakes would run the show.
Even as it conducts research to refine its algorithms, the Cardano foundation’s roadmap indicates that a complete version of its technology will be released during the second quarter of this year. A more comprehensive evaluation of its prospects can only occur then.
The cryptocurrency also faces fierce competition from other cryptocurrencies in a crowded ecosystem. Litecoin, a bitcoin offshoot, is angling for a similar role for daily transactions. Dash, which has inspired Cardano’s approach to governance, also has identical aspirations. Ripple might provide strong competition to Cardano’s ambitions of becoming a bridge between the existing financial system and cryptocurrencies.
Where Else Can I Invest?
Considering the degree of risks involved in cryptocurrencies, one can explore several other money market instruments, which provide a safe and promising measure to park your hard-earned money. One such instrument is Mutual-fund.
As mutual funds are managed by expert professionals, even if there is some risk involved at times that risk is calculated and does not expose you to some indispensable disaster.
Still, if you want easy returns and are open to risk then you can try investing in small-cap funds which is still better than diving into the uncharted waters of cryptocurrency.
Cardano Risk
Cardano boasts an impressive pedigree and a long-term vision for its blockchain and cryptocurrency.
But it is still early days. While its initial use case is as a cryptocurrency, Cardano’s blockchain intends to expand beyond coins into a control layer that will provide services absent in the cryptocurrency ecosystem today.
Given that it is still early days, much depends on the execution of the vision.
The blockchain was released only in September 2017, and the limited number of nodes within its network are all controlled by the foundation.
Hoskinson has said that its data scaling efforts will not bear fruit until 2019. Several innovations in the system, such as its aim of standardizing protocols, are still in the research phase and will be implemented only as Cardano’s use cases grow. In its current state, Cardano’s technology is also unproven.
Conclusion
Now after weighing all the risks and opportunities involved in ADA coin, it seems that it is a big gamble to invest in cryptocurrencies. Because the future prospects of these assets are highly uncertain and the risks involved clearly outpace the benefits that come along.
If you have a penchant for making quick money then rely on the expertise of Small-Cap fund managers and invest in these instruments which significantly reduce the risks involved and simultaneously promise great returns.
Happy investing!