Is Cardano a Good Investment?
Cardano has been a promising investment based on historical price action. It is a blockchain-based project with more than 70% of the total currency, ADA, staked for network validation.
A reason that so much ADA is staked is the cryptocurrency's dearth of decentralised applications (dApps) open on its blockchain.
The Cardano project was initiated in 2015 to unravel some of the issues that Ethereum encountered from its Proof-of-Work consensus model. Cardano was officially launched by Charles Hoskinson, a co-founder of Ethereum.
Notable Cardano key advancements are multiple processing layers for settlements and computations, Proof of Stake consensus, and the flexibility to update its network efficiently in the future.
The Cardano settlement layer was founded in 2017 and raised around $63 million via the ADA ICO. The settlement layer excludes smart agreements, so Cardano can only be used to resolve peer-to-peer payments right now. The ever-growing team of designers has been working hard and preparing to launch smart agreements on the Cardano Computation Layer.
Cardano presently has between 100 and 150 developers working on the project and drives around 700 commits every week. These aspects advance the cryptocurrency as one of the most significantly-developed projects in the blockchain sector today.
Cardano Smart Contracts
A common critique of Cardano is its non-existent DeFi ecosystem. Since the launch of smart contracts on September 12, 2021, investors have expected to see an ecosystem be built-out soon. However, Cardano's smart contract update didn't work efficiently. The ADA price went down after applications were incapable of working on the new software.
Coming to 2022, Cardano developers are planning to enhance smart contract execution and scalability through new release deployments. As per Cardano's communication supervisor, there will be three primary code drops this year. The first one launched in February, and the following two are scheduled for June and October. Cardano smart contracts will operate on the Cardano computation layer, which will back legacy Solidity contracts and its language, Plutus.
Cardano has already established outstanding partnerships with universities, governments, and enterprises. Hoskinson has worked hard to see Cardano's potential come to fruition in Africa, where he considers blockchain can bring a massive impact.
New Balance also has programs to use Cardano's network to track its progress.
Is Cardano a Promising Investment?
Cardano is a promising application in the blockchain space today, with solid fundamentals and highly driven momentum behind the project.
Cardano has a solid technical base and outstanding developers with impressive plans. It could be a win-win situation for crypto investors to have this crypto coin in their portfolio. Remember, this is just my opinion and not financial advice. Crypto investments are innately risky, and you should not invest any money you are not willing to lose.
Author: Priya Kumari
Priya is a passionate content writer and the co-founder of Finendorse. She is an enthusiastic crypto investor and has a huge interest in the upcoming digitisation age.