Cardano (ADA) is just like Bitcoin (BTC), a blockchain project, but where bitcoin uses proof-of-work, Cardano uses proof-of-stake. However, this is not the main reason why Cardano is better than bitcoin. Where it really bags maximum points is in its approach. For starters, the team has released a 50-minute video explaining the inner workings of Cardano on a whiteboard. This is something every cryptocurrency should do, Whitepapers are just not enough to explain what projects are up to. Whitepapers are more and more looking like PR tools designed to make projects look serious.
To show how good Cardano is, let’s explore a possibility where Cardano had been introduced to the world before Bitcoin and Bitcoin tried to pitch its project right now. Bitcoin would talk about the consensus method of proof-of-work, one that would take cost $3, take up to ten minutes and use up electricity that could power a city. No one would buy it. So, by all means, Cardano’s concept is much better, it’s just that it’s not as widely accepted as Bitcoin. This makes you wonder what will be, will bitcoin become faster, cheaper and environmentally friendly? Will Cardano become superior to Bitcoin? Or will the two become equals? It is likely that if Bitcoin doesn’t solve the issues of speed, cost, and energy consumption in the next 10-20 years, Cardano and cryptocurrencies like it, will take its place.
Here Are Three Areas That Bitcoin And Other Cryptos Are Falling Short:
But first; a theory, one that says the reason an investor will choose a particular coin is that it fits their preferred reality. If you choose bitcoin, it’s because you believe it will become the only blockchain protocol and the rest will just die. If you choose from the long list of altcoins, it’s because you prefer thinking of a world where there are blockchains for everything. This means Bitcoin for a store of value, Ethereum for DApps, Stellar for payments, Cardano for Smart contracts and so on. As long as the coin has a niche or does something unique, there is a market for it.
Viability As A National Currency
Bitcoin was designed to be used for exchange-for-value, buying coffee and pizza. It was also to be store-as-value; like gold, famously getting its “digital gold” name. With the right balance of the two, then bitcoin could become a national currency. In recent times, bitcoin has become more popular as a store-as-value because of its volatility. As an exchange-for-value, there is a fear that prices could fall resulting in massive losses. If bitcoin could get a way to solve its volatility, then it becomes viable to replace a national currency.
In addition to volatility, to become a national currency bitcoin needs to be more secure, more accessible and easier to use. At the moment, hacks remain a menace in the industry and information on how bitcoin works and how to use it remains scarce.
Insurance And Crypto Exchanges
Insurance could be the key to mass adoption. Currently, there’s at least one crypto exchange that offers insurance against theft or hack, Coinbase. This is a trend that is bound to catch on with other crypto exchanges with time. If bitcoin is to become a dependable and stable currency that will be used to pay for bills, buy commodities and more, there needs to be zero chance that it can all disappear with a hack.
It is also likely that banks join in, both to help insure the assets and to offer loans against your digital assets. At this point, crypto holders will have a choice of exchanges and banks to work with depending on the best services and support.
Adoption Of Hardware Wallets
Security keeps coming back as one of the fundamental challenges that affect bitcoin and other cryptocurrencies. Solutions for this include; hardware wallets and paper wallets. The idea is, keeping your cryptocurrency in a computer/hardware that has no access to the internet, protecting it from hacks. However, hackers are already thinking of this and coming up with new ways to get to the digital assets. Also, if you happen to lose your password, you lose your assets.
All these are challenges that hinder bitcoin and other cryptocurrencies like Cardano from mass adoption. But, the industry is actively working to find solutions for them.