It’s been a while since Cardano was in the news, and it’s easy to forget why it’s still one of the most promising projects in cryptocurrency. There are a lot of good reasons to be bullish about Cardano, but with all of the hype around Bitcoin (BTC) and Ethereum (ETH), some people might not know where to start when considering investing or using this project.
Cardano is a blockchain platform that aims to offer more advanced features than any protocol previously developed. In case you are looking to buy Cardano but are still not sure if it’s a project worth considering, this article will help. It will help you understand why Cardano is still one of the best projects out there for long-term investors.
It’s already the third-biggest cryptocurrency
Cardano is currently the third-largest cryptocurrency by market cap. It’s also a top 10 cryptocurrency, and it has a lot of room to grow over the next few years.
Cardano was created by Charles Hoskinson and input from other researchers at Input Output Hong Kong (IOHK), a blockchain research and development company. Cardano was the first blockchain project to be developed from a scientific philosophy.
That means it is built on peer-reviewed academic research and logical reasoning rather than popular opinion or speculation. This allows IOHK to create smart contracts that are more secure than those on Ethereum or other blockchains.
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Cardano has a massive developer community
You may be wondering if Cardano has a large developer community. Well, it does! In fact, Cardano has the third-largest blockchain developer community in the world.
This means that there are a lot of people working on making Cardano better and more innovative. This also means that, over time, Cardano will grow in value as more developers join their ranks and work on their projects.
The project has a massive endowment for funding development
In 2019, Cardano rose in price to reach one of its all-time highs. However, a year after, the crypto fell from its peak. This drop was a result of investors selling off their holdings and fears that the project would not be able to deliver on its promises. However, there are some very strong reasons why you should keep your eye on this cryptocurrency.
Cardano has an endowment worth $20 million (USD). The endowment is funded by the Cardano Foundation and managed independently of IOHK and Emurgo. It is used to fund development, marketing, and education activities related to Cardano technology.
Cardano is one of the few projects that can be used as cash
The crypto market is still in its infancy. There’s a lot of room for growth, and the use case that best fits this description is as cash. The most well-known cryptocurrency, Bitcoin, has failed to become a good substitute for cash because it takes too long to confirm transactions (10 minutes on average) and charges high fees that make micropayments impossible.
Bitcoin’s main competitor Ethereum doesn’t fare much better as far as being used as cash goes. While its transaction speed is faster than Bitcoin’s (15 seconds), it also has high fees, which make micropayments impractical.
That leaves Cardano – the only one of these three cryptocurrencies that can be used conveniently enough to function as money in day-to-day life without incurring significant costs or processing delays.
Cardano has one of the best technology behind it
Cardano is built on a Proof-of-Stake consensus protocol called Ouroboros, which was developed by IOHK. Ouroboros is the first PoS protocol that has been mathematically proven to be secure, and it is more energy efficient than Proof-of-Work protocols like Bitcoin.
Cardano also utilizes a unique layered architecture that allows for the network to be scalable and flexible. The first layer of the network is the settlement layer, which is responsible for handling transactions and storing account balances.
The second layer is the computation layer, which is responsible for executing smart contracts. And this layered approach allows for different parts of the network to be updated and upgraded independently, making Cardano more adaptable and resilient. It also means that new features can be added to the network without compromising the security of the overall system.
The Potential of Cardano
Cardano has the potential to become the most widely used blockchain platform in the world. The platform’s unique features and advanced technology make it well-suited for a wide range of use cases, including financial transactions, identity management, supply chain tracing, and voting systems.
In addition, Cardano’s layered architecture makes it possible to easily add new features and functionality to the platform. This makes Cardano much more flexible than other blockchain platforms and allows it to be tailored to the specific needs of different industries and applications.
The project’s governance model means it won’t get bogged down by politics.
As a project that has no central control, Cardano’s governance model is based on scientific philosophy. This means that it will not be bogged down by politics and can instead focus on development.
These features make Cardano an attractive investment opportunity for many traders, especially those looking to diversify their portfolios.
Nobody is in control of Cardano, which seems like a good thing.
You may be wondering why this is a good thing. It’s not about being in control but about making sure that Cardano does not suffer from the same fate as other cryptocurrencies.
In 2017 and 2018, we saw a lot of cryptocurrency projects suffer from centralization issues. This means that one company or person has too much influence over the project, which often leads to corruption or manipulation of the token price.
For example, Ripple Labs controls 60% of XRP tokens (XRP), even though they own less than 20%. They can do what they want with these tokens without consulting anyone else, including using them for personal gain or selling them to make money out of thin air.
Final Note on Why Cardano Still Has Great Potential
It’s important to remember that Cardano is still a very young project, but it’s already showing signs of great promise. The team behind it might be the most experienced in the industry, and they have a lot of resources at their disposal.
This means that Cardano could rise through the ranks quickly as more people learn about its potential. And with any luck, it will eventually become an Ethereum competitor that surpasses even its predecessor!
So, if you are wondering if investing in Cardano is a good thing for you, we believe all these reasons stated above are enough to convince and motivate you.