As we approach September, we are excited to announce The Wisly Spotlight Series where we focus on specific projects in the crypto scene and take a deep dive into the dynamics of those cryptocurrencies. We kick off our very first edition with an in-depth look at Cardano – a hot prospect that has grabbed the attention of crypto investors from across the globe.
What is Cardano?
Cardano is one of the fastest-growing crypto projects in the market. It is a blockchain platform that uses a proof-of-stake consensus mechanism – considered less energy-intensive than proof-of-work algorithms that require copious amounts of energy for mining. This platform is open-source and enables anyone to contribute towards its development – in turn creating a community that is fair, transparent, and more secure.
Its native token is ADA and is regarded as a large-cap cryptocurrency with a market cap of over $83 billion. It has a circulating supply of over 32 billion ADA and a unit price of $2.59 at the time of writing. Cardano was founded in 2017 by Charles Hoskinson and is the first blockchain platform to be created through peer-reviewed research.
Its objective is to enable decentralised apps (DAPPS) and smart contracts to be developed with modularity. Holders of ADA can transact and make peer-to-peer transfers with it across the globe, while Cardano’s network is useful in the agricultural industry as companies use it to track fresh produce. It is also popular in the retail industry where companies use Cardano’s network to identify and curb the distribution of counterfeit goods.
How does Cardano solve congested blockchain issues?
While many other cryptocurrencies try to improve on issues faced by Ethereum and Bitcoin through layering solutions on top of existing technology, Cardano sets itself apart by building a completely new blockchain from scratch. With its proof-of-stake technology, it has the ability to produce around 1 million transactions per second while using much less energy than those networks that rely on proof-of-work algorithms.
Scalability is another issue that Cardano addresses with its multi-layered structure. Most blockchain networks use single layers and that leads to network congestions, slower transactions, and higher transaction fees. Cardano’s platform eases this congestion through incredibly fast processing times that lead to lower transaction fees.
The Alonzo Hard Fork – Cardano’s smart contract functionality
Cardano’s value has soared since a recent announcement about a major upgrade dubbed The Alonzo hard fork that is due to launch in September 2021 – a matter of days! The Alonzo hard fork plans to implement smart contracts on Cardano’s blockchain network.
Smart contracts are coded programmes that are stored on the network and are activated when predetermined conditions are satisfied. Once activated, agreements can be automatically executed on the blockchain. Once the Alonzo hard fork upgrade is complete, any user will be able to create and deploy their own smart contracts on Cardano’s network – in turn paving a way for native DAPPS.
This is certainly an exciting development that showcases Cardano’s immense growth potential and will attract investors in their droves. The launch of Alonzo precedes Cardano’s exciting summit from 25 to 26 September 2021 which will surely provide more details on Alonzo’s anticipated trajectory in the coming months. The summit promises to be their biggest ever and those who are interested in attending can do so here.
Cardano’s stock is certainly on the rise with exciting developments that are sure to maintain its upward trajectory. The platform addresses many of the inherent issues that the more established cryptocurrencies seem to have trouble with. With the most recent upgrade due soon, Cardano has certainly put itself on the map and should definitely be one of the top alt coins to invest in for 2021.
It is important to note that investing in Cardano is a risky and highly speculative proposition. This article does not provide recommendations, advice, or guidance regarding Cardano investments but is rather our opinion on such activities. Investors must conduct their own research and engage in the services of qualified professionals before making any financial and/or cryptocurrency investment decisions. We do, however, recommend established platforms like Wisly to monitor and analyse your Cardano and cryptocurrency investments.