This month we celebrate Ethereum's third birthday and reflect on the many milestones that have occurred in the industry since the dawn of the original blockchain of the contract. The main interest is sprouting, the market capitalization for industry has increased by over 5.900% and the number of cryptocurrencies currently in circulation is at historic highs. Until recently, it seemed that Ethereum would be one of the few platforms able to promote the traditional adoption of blockchain technology. That is, until Cardano (ADA) appeared.
Although in the early stages, Cardano is already labeled by some experts as a scalable solution to many of the inefficiencies created by Ethereum, which, according to some, seems to suffer from its own success. In recent months, the platform has been flooded by a large number of new decentralized applications (DApps) that are creating a bottleneck effect on the Ethereum blockchain.
As notoriously interpreted by the dizzying rise of crypto blockchain cryptokitties, the popular applications of Ethereum require an excessive bandwidth to stay afloat, which ultimately has a negative effect on efficiency. of the network. And although the hashrate of ether is growing, it is far above the number of projects built on the blockchain.
By contrast, Cardano was specifically designed to handle high-volume transactions, operating on a first of its stake test algorithm (PoS), dubbed Ouroboros, which, unlike the other major cryptocurrencies, does not require any form of encryption. Instead, token holders validate transactions by putting their involvement into play for a cut of what would otherwise be a reward for "winning everything", eliminating the need for exhaustive energy consumption and minimizing transaction times.
It is a process widely considered by the wider community of cryptocurrencies as the future of the sector. While the team behind Ethereum has stated that in the near future it will also move to a PoS algorithm, Cardano will likely set the precedent for worldwide adoption.
In a rapidly evolving field, being the first to take a major technological step is not an insignificant development. Emerging startups looking for fast and secure transactions can select Cardano on Ethereum in an attempt to increase the efficiency of DApp for potential users.
In fact, several pharmaceutical companies have already started a switch between the two platforms and many others will probably follow suit in the future. This is perhaps the most intriguing of the Cardano platform; its use cases are apparently limitless, ranging from the official storage of documents, to the optimization of the supply chain, to budget management.
Some may argue that Ethereum, especially compared to Cardano, is too solidified in the fabric of industry to ignore. Currently, 1 eter is worth $ 257 USD (with a market capitalization of $ 26 billion), while 1 ADA is worth only $ 0.09 (with a market capitalization of $ 2.3 billion). While the contrast is staggering, it is difficult to predict exactly what the true value of the Cardano platform will be until its functionalities are fully operational. Once new and innovative DApps start to enjoy success using Cardano blockchain, the value of ADA will probably increase to meet the growing demand.
In addition, since Cardan's PoS model maintains or freezes a certain number of tokens to validate transactions, many believe that the decrease in supply will ultimately lead to an increase in its value. With the growth of the Cardano community, more ADAs will be needed to validate each transaction, which will probably contribute to the growth of the industry. As time passes, investors will increasingly see Cardano as an appropriate store of value, and potential users will flock to the platform looking for more opportunities.
This does not mean that Cardano does not have its own set of risks. As mentioned earlier, the project is in the preliminary stages of its development plan, which, although detailed, is far from completion. For this reason, investors should prepare for short-term fluctuations in the market as a result of speculation. As in any cryptocurrency, market volatility is always present and users should carefully consider the risks before deciding on which project to invest.
However, Cardano shows a huge promise for the future of the industry. Even in its early stages, users believe it is turning out to be one of the most promising blockchain platforms on the market. The project led by Charles Hoskinson, co-founder of Ethereum and CEO of IOHK, and Michael Parsons, president and director of the Cardano Foundation, worked to create a substantial roadmap for future growth, turning high ambitions into # 39; tangible action. It is through their thought leadership that Cardano was able to convey his mission to the wider community of cryptocurrencies, attracting loyal followers in the process.
With all the excitement that lurks in the cryptography market right now, it's often difficult to accurately predict which projects, like Ethereum, will survive to see their third birthdays. However, in the midst of an increasingly saturated market, Cardano stands out from other competitors of Ethereum (for example, NEO and EOS) creating a unique platform that promises all the best qualities of an intelligent contract blockchain, but with unprecedented scalability . and interoperability. I, along with the rest of the cryptocurrency community, can not wait to see this growth.
This is a guest post for Mati Greenspan, senior market analyst at eToro. The opinions expressed are yours and do not necessarily reflect those of Bitcoin Magazine or BTC Inc. This article is for informational purposes only and is not intended as investment advice.