Cardano and its native token, ADA, are among the innovations with the brightest future in the cryptocurrency ecosystem. Even its critics agree that it’s one of the decentralized financial projects with the greatest long-term potential. It’s a public, open-source blockchain and smart contract platform, monitored by the Cardano Foundation and IOHK, a company focused on blockchain technology. The Cardano headquarters are located in Zug, Switzerland. It was founded by mathematician and Ethereum co-founder, Charles Hoskinson. Emurgo, a Japanese corporation, is another member of the “trilogy” that supports Cardano and has grown to be its biggest private investor.
For those who like to research the history of cryptocurrencies before investing, another interesting fact: the project is named after the Italian scientist Gerolamo Cardano, who was the first to publish works on contemporary algebra. Cardano’s native token, ADA, on the other hand, honors Ada Lovelace, a 19th-century mathematician, widely regarded as the first female programmer in history.
Benefits of Investing in Cardano ADA
When urging investors to buy Cardano, the project’s defendants emphasize three main reasons:
- It was developed in an academic environment (which is important for scalability and security).
- There is a large community that supports it (which ensures demand and, consequently, price).
- It is decentralized (which means that it doesn’t depend on organizations that can be regulated).
Some experts and crypto enthusiasts are even convinced that when you invest in Cardano ADA, you are backing a third-generation blockchain that is likely to catch up and even surpass more established projects, such as Bitcoin or Ethereum. If this is not convincing enough, here are some other reasons why you should invest in Cardano.
Cardano Is a Strong Research-Based Project
Among other things, Charles Hoskinson’s coin is recommended as an investment for its advantages of open source, flexibility, and ease of transaction execution, as well as the consistency of the project that relies on scheduled updates, that are only implemented after thorough testing. Since Cardano’s inception in 2015, the project has always moved gently, gradually introducing features after extensive research and testing.
For instance, the company that takes care of the blockchain, and one of the development’s pillars, IOHK, announced an update to Cardano’s smart contract feature, dubbed Goguen, a long time before it was released in late 2021. And once Goguen was released, it turned into an even bigger competition for other third-generation blockchains, such as Solana, Avalanche, Tezos, and its largest rival and predecessor, Ethereum, once it has been updated.
Cardano Is a Project in Constant Evolution
Cardano was developed and is still being developed as a project in 5 cycles, or as they are called internally, “roadmap eras”: Byron, Shelley, Goguen, Basho, and Voltaire. In each, the network added or will add features with the intention of slowly and staidly developing a strong proposal that inspires investor trust over time.
As previously mentioned, it is currently in the Goguen era, one of the most important for the blockchain because it will provide support for e-contracts (also known as smart contracts) and native tokens. It will also enable the development of a DeFi system on the same Cardano network.
Haskell, the programming language regarded as the most secure one in the world, has been used to develop Cardano since its inception. This programming language is used by many huge companies for their systems, including Meta, AT&T, NVIDIA, and Microsoft.
Cardano Is Being Revolutionized by Smart Contracts
By definition, Cardano is a platform for smart contract transactions that use only scientific methods. Its major goal is to enable flexible and secure execution of a virtually infinite number of financial transactions.
The creation of smart contracts, decentralized applications, and DeFi (decentralized finance) applications has been made possible thanks to the Cardano support network. These dApps could be used by people, businesses, non-profits, and governments all across the world.
One great example of the many possibilities offered by the project is the way it’s been used in Ethiopia to improve its education system. Namely, in collaboration with IOHK, the Government of Ethiopia has implemented a Cardano blockchain-based national solution that will enable identifying students and teachers, digitally verifying grades, and remotely monitoring school performance.
Cardano Blockchain is Efficient, Scalable, and Interoperable
Many wonder what makes Cardano different from Bitcoin, and the answer is that mining on the Cardano blockchain uses Proof-of-Stake (POS) algorithms instead of Proof-of-Work (POW). This way, the algorithm, named Ouroboros, turns users into a part of the project and active participants in the network. This system consumes less energy than Bitcoin.
Conclusion
Many agree that, as a project that is constantly evolving, Cardano is a good investment, with potentially a bright future. Experts are optimistic that its value will continue to increase as the project moves through its cycles.
