Can Cardano see a $25 rate strike in the next five years?
What is Cardano (ADA):
Cardano is one of the most important blockchains. The third-generation blockchain platform runs on Proof-of-Stake (PoS) consensus, designed to be a compatible alternative to Proof-of-Work (PoW) consensus. The native ADA token is designed to make it easier for network users to participate in operations. ADA holders have the right to vote on proposed changes to the software. The ecosystem has become an alternative to Ethereum.
Currently, the ecosystem is collectively managed by three separate independent organizations:
- The Cardano Foundation – This is a blockchain and crypto organization based in Switzerland. This organization oversees and develops the ADA blockchain.
- IOHK – This is the software engineering and technology company responsible for building ADA. Charles Hoskinson and Jeremy Wood co-founded it. IOHK also works with academic partners to promote blockchain education and improve the protocol’s long-term scalability.
- Emurgo- This is the global technology partner responsible for driving the adoption of Cardano’s technology and encouraging businesses and large organizations to do so.
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Developers can use blockchain for features such as monetary transactions, smart contracts, decentralized finance (DeFi), and digital applications.
History of Cardan:
Cardano was created by technologists Charles Hoskinson and Jeremy Wood. Hoskinson happens to be the co-founder of Ethereum (working on PoW). It realized the challenges of Proof-of-Work and started developing Cardano and its ADA cryptocurrency in 2015, with the final launch in 2017.
What makes the Cardano ecosystem stand out?
Cardano Ecosystem differentiates itself from other projects by focusing on a research-driven design approach and emphasizing an academic approach to its blockchain adoption.
It has proven to be reliable and offers its users and developers optimizations based on scientific research and formal verification, through which its code is mathematically verified.
Cardano is the first to implement the consensus algorithm, Ouroboros was created by Cardano at the time of its founding, which is the first PoS protocol that has been proven to be secure and the first to be informed by academic research. Additionally, its code is written in the Haskell programming language, which is commonly used in the defense and banking industries. The algorithm is used by computer networks running the software to provide security, validate transactions, and earn newly minted ADA.
How it works:
The Cardano blockchain is divided into two layers, the Cardano Settlement Layer (CSL), which is used to record transactions and transfer ADA between accounts. The Cardano Compute Layer (CCL) consists of smart contract logic that users and developers can use to move funds programmatically. Computers running Cardano software can join as one of three nodes, relay nodes, multiple nodes, or edge nodes.
It basically allows users to transact in the ADA cryptocurrency and allows developers to use scalable and secure applications powered by ADA.
Cardano versus Ethereum:
Blockchain has similar characteristics, and both thrive as decentralized platforms creating new tools and protocols on a global scale. Hoskinson is the co-founder of both projects.
He realized the need for a different blockchain with more security and scalability, whereas Ethereum had some issues with scalability.
Ethereum was created a few years before Cardano and has a market cap around ten times that of ADA.
Cardano is working on the Proof-of-Stake mechanism, and Ethereum is currently working on Proof-of-Work but plans to move to PoS.
The ADA programming language is Haskell, and that of Ethereum is Solidity.
Its blockchain is divided into two layers, CSL and CCL, and Ethereum is the layer 1 blockchain.
ADA differs in its emphasis on a research-driven design approach, whereas Ethereum was designed for a number of custom assets and programs.
Cardano roadmap:
Cardano is being developed and built in five phases, each named after an important and influential historical figure. Each phase, also known as an Era, revolves around a set of features delivered across multiple code releases. The five Eras are:
- Byron Era: founding phase
- Shelley era: decentralization
- The Goguen era: smart contracts
- Basho Era: Scaling
- Voltaire Era: Governance
Last week saw a resolution to UI issues. The team also released versions of Cardano-graphQL and Cardano rosetta. They worked on finalizing the new transaction workflow, they continued to review IOSimPOR, and they are continuously working on improving the network, making the Cardano ecosystem more compatible and more reliable.
Cardano SundaeSwap:
Decentralized Exchange is an application accessed through a series of smart contracts running on a blockchain. SundaeSwap is the first decentralized exchange developed and built on the Cardano blockchain which went live last month. It provides facilities usually provided by central entities but without the need for an intermediary. SundaeSwap allows users and participants of the Cardano blockchain to provide liquidity and create a marketplace for others to trade their native tokens. Via the SundaeSwap, a user can lend, bet, borrow and exchange in a decentralized way. SUNDAE is the native token of SundaeSwap.
How to stake Cardano:
Becoming active network participants by depositing or locking a certain number of tokens is staking. ADA Staking is possible thanks to the Proof-of-Stake consensus that its blockchain uses. In the case of ADA, users can rely on entities called stake pool operators. These pools are managed by specialists and individuals who have extensive knowledge of network staking. There are digital wallets available for staking ADA. For example, Yoroi wallet provides a list of pools with required information such as ROA, pool size, costs, pledge, blocks. These research pools should be researched and then a decision should be made. Like any other investment, staking involves risk. Therefore, before staking ADA or any other cryptocurrency, it is necessary to have the knowledge and information about everything.
How to trade Cardano:
How to start buying Cardano:
- The first step in buying ADA is to get a Cardano wallet which can be a hardware wallet or a software wallet.
- The next step is to locate an ADA address.
- Choose a cryptocurrency exchange for ADA. Some popular exchanges can be Coinbase, Binance, Kraken, OKEx, etc. which can be chosen to buy Cardano. The chosen crypto exchange should be decided after thorough research on its security.
- Open an account and clear the account verification process.
- Make your ADA purchase: Depending on the payment methods accepted by your exchange, you can buy Cardano through fiat currency or other crypto assets. But the requirements of different exchanges may differ. It is best to check and research before buying Cardano.
How to sell Cardano:
- Sign up for a cryptocurrency exchange.
- Clear the verification process.
- Sell Cardano in exchange for Ethereum or Bitcoin or the currency allowed by your exchange.
The reliability of the cryptocurrency exchange you use should be carefully checked, as well as knowledge of the available market pairs. An ideal platform guarantees maximum security and reliability.
Cardano price predictions 2022 and beyond:
As of this writing, Cardano (ADA) is trading at $1.03. The market cap stands at $34,694,070,131. The maximum supply of ADA is 45,000,000,000. It reached its all-time high in September last year at $3.10.
As price predictions are common in the cryptocurrency industry, Cryptopolitan, a London-based publisher, recently made a price prediction that ADA will be bullish in 2022. It further predicts that the price of ADA could reach around $3. While Changelly, the cryptocurrency exchange, pointed out that it will be around $3.25 for most of the year.
Coinpedia, the crypto news outlet, also made a price prediction recently that the price of Cardano will reach around $10 in the next five years. And given the new smart contact updates, the ADA price might even hit around $25 by the end of five years.
Whether or not these Cardano price predictions turn out to be accurate, it will be something to look forward to. Since the ADA ecosystem has to offer many applications, the demand could increase, which would lead to an increase in prices.
Source: https://www.thecoinrepublic.com/2022/02/19/can-cardano-witness-a-rate-strike-of-25-in-the-next-five-years/
