Keeping Up with Cardano
Scott Keisler
Altcoins
3 years ago
1 QCP
Emerald Crypto | February 27, 2021
Cardano made waves this week by becoming the third largest cryptocurrency in the world in terms of Market Capitalization. All of the other cryptos in the Top 10 are down this week (besides stablecoin Tether) but ADA is actually up over 18 percent in the last seven days.
A lot of people seem to be pretty high on this digital asset, and for good reason as it's currently bucking the overall market trend.
Cardano (ADA) is an open source blockchain platform for smart contracts. It was founded by Ethereum co-founder Charles Hoskinson in 2015 along with Jeremy Wood. Cardano is funded by technology company IOHK, which seeks to use peer-to-peer innovations to provide financial services to the three billion people who don't have them.
A smart contract is a transaction protocol that executes only when certain conditions (that are programmed into the protocol) are met. This eliminates the need for any middleman to broker the deal, increasing efficiency and lowering transaction costs. The Ethereum Network is most known for its use of smart contracts thus making Cardano an ETH competitor by default. (Other smart contract platforms included Solana SOL, Cosmos ATOM and Algorand ALGO.)
Cardano is the second most actively traded protocol behind ETH according to Blockchain Development Trends 2021, a report published by Outlier Ventures. ADA, the native coin of the Cardano platform, features low transaction costs and, like Polkadot, is scalable – meaning supply can be increased to accommodate a larger demand.
Cardano also seeks to be a more user-friendly way of entering the smart contract space. For example, ADA uses native tokens rather than relying on the smart contract to produce them.
However, a lot of Cardano's potential still lies in the realm of the theoretical. The project has yet to enter the DeFi space in a concrete way. This puts ADA behind not only Ethereum (which most DeFi protocols are based on) but also Binance. The Binance Smart Chain also employs smart contracts and their decentralized exchange PancakeSwap (CAKE) became the largest DeFi exchange in the world by volume on February 18th.
However Cardano is taking active steps to enter the DeFi space. IOHK recently announced that DeFi lending protocols Liqwid and Maybe Workshop are both candidates to receive ADA funding for future development and deployment.
The fact that Cardano hasn't entered the DeFi space doesn't mean that it won't be able to do so successfully in the future. But it is something worth considering as a lot of the upside is based on what people think will happen and not a lot that has actually happened.
(Click the website badge in my profile for original publication with sources.)
Cardano made waves this week by becoming the third largest cryptocurrency in the world in terms of Market Capitalization. All of the other cryptos in the Top 10 are down this week (besides stablecoin Tether) but ADA is actually up over 18 percent in the last seven days.
A lot of people seem to be pretty high on this digital asset, and for good reason as it's currently bucking the overall market trend.
Cardano (ADA) is an open source blockchain platform for smart contracts. It was founded by Ethereum co-founder Charles Hoskinson in 2015 along with Jeremy Wood. Cardano is funded by technology company IOHK, which seeks to use peer-to-peer innovations to provide financial services to the three billion people who don't have them.
A smart contract is a transaction protocol that executes only when certain conditions (that are programmed into the protocol) are met. This eliminates the need for any middleman to broker the deal, increasing efficiency and lowering transaction costs. The Ethereum Network is most known for its use of smart contracts thus making Cardano an ETH competitor by default. (Other smart contract platforms included Solana SOL, Cosmos ATOM and Algorand ALGO.)
Cardano is the second most actively traded protocol behind ETH according to Blockchain Development Trends 2021, a report published by Outlier Ventures. ADA, the native coin of the Cardano platform, features low transaction costs and, like Polkadot, is scalable – meaning supply can be increased to accommodate a larger demand.
Cardano also seeks to be a more user-friendly way of entering the smart contract space. For example, ADA uses native tokens rather than relying on the smart contract to produce them.
However, a lot of Cardano's potential still lies in the realm of the theoretical. The project has yet to enter the DeFi space in a concrete way. This puts ADA behind not only Ethereum (which most DeFi protocols are based on) but also Binance. The Binance Smart Chain also employs smart contracts and their decentralized exchange PancakeSwap (CAKE) became the largest DeFi exchange in the world by volume on February 18th.
However Cardano is taking active steps to enter the DeFi space. IOHK recently announced that DeFi lending protocols Liqwid and Maybe Workshop are both candidates to receive ADA funding for future development and deployment.
The fact that Cardano hasn't entered the DeFi space doesn't mean that it won't be able to do so successfully in the future. But it is something worth considering as a lot of the upside is based on what people think will happen and not a lot that has actually happened.
(Click the website badge in my profile for original publication with sources.)
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