Cardano ADA, Bitcoin BTC and Ethereum ETH share some common traits; however, Cardano (ADA) and Ethereum use smart contracts. These continue to attract more investors especially by end of last year because of their value. However, with the recent market crash, it is evident that there is no coin that is unshakable.
The creation of newer coin is as a result of failures experienced by older cryptocurrencies. This leaves the investor at crossroads; not sure what each coin has to offer. Once the new cryptocurrencies introduce better features and capabilities, older coins like BTC and ETH might become less popular and that’s where Cardano (ADA) will emerge as the best option coin.
What so Special about Cardano (ADA)?
While Bitcoin and Ethereum potential have been stretched almost to the limit, Cardano is just in its infancy. Cardano is fully decentralized open source outfit and is backed by three entities that have vast business interests on the platform. These include the Cardano Foundation, Emurgo from Japan and a Hong Kong Based company, Input Output Hong Kong (IOHK).
Built from ground up, Cardano is seeking to overcome the current issues of privacy regulation and scalability facing its two competitors. Bitcoin was the first to enter the market and out of its failures, Ethereum was born and due to its inefficiencies, the likes of Cardano came into being.
When you look at Bitcoin and Ethereum the distinctions are not glaring. However, we need to look at only two areas; consensus algorithm or protocol and transaction of data.
Consensus Algorithms in the Market
Consensus algorithm or protocol simply means the process of determining who completes the next lock in the blockchain. Proof of stake in data transaction on the other hand means the rewards that users get which are proportional to their holding. It is process where investors get rewarded for holding a particular coin in their portfolio.
One downside of Bitcoin is that it is not planning to move to proof-of-stake. Ethereum is in the process of upgrading because this one of the proven algorithms that has over the years proven most effective in securing any blockchain.
Cardano on its part is powered by Ouroboros concept which comes with unsurpassed security capabilities. This has made Cardano the natural choice for the banking sector, the consumers and the regulating bodies. With proof-of-stake, ADA will not be mined and this will help them achieve the goal of having 45billion ADA tokens in circulation.
Data Transaction and Future of Cardano (ADA)
When looking a different coins or tokens in the market, the data handling capacity is a must to consider. Bitcoin cannot handle complex data; it works the same way fiat money works; processing basic information.
Ethereum is a notch higher because it is uses as a contract storage repository and a currency. However, this does not make it superior since it uses a single layer model for information storage resulting to bottlenecks when processing transactions.
Cardano has introduced a multi-layer data processing outfit and this allows its ADA tokens to be used as currency and a storage facility for contract information. These are however separated by layers that enable the platform process transactions smoothly and faster irrespective of their complexity.
The ultimate goal for the Cardano (ADA) network is to bring onboard the commercial customers that Bitcoin and Ethereum cannot handle. The ultimate goal is to attract value addition customers and get the global appeal that is still missing.
Why Cardano (ADA) is a Future Coin to Watch
Compared to Bitcoin, Cardano (ADA) has a future cryptocurrency appeal. It offers a better value proposition and has features and confidence that investors of repute are looking for. As much as Ethereum is working hard to improve on smart contract vulnerabilities, users might not be patient enough to way and are now finding Cardano as their safe haven.
The team behind Cardano knows what the consumers is looking for. This has been learnt the hard way from the experience of older coins. Given that the Cardano project is still in “beta” and is challenging the older generation outfits, it will soon replace Bitcoin and Ethereum through superior governance and additional consumer centric features.