Earlier in the year when Cardano ADA reached the 7th position by market capitalization, Charles Hoskinson, co-founder of Cardano, said that Cardano would beat bitcoin and Ethereum in a year. He believes that Cardano is better than both Ethereum and bitcoin, and will beat them on this merit. This is a pretty bold claim, given the two coins have been holding their positions for years. Bitcoin, in particular, has been the number one cryptocurrency since it was launched almost a decade ago and its dominance is well over 50%. So, is Hoskinson right? Well, not particularly on beating Bitcoin in a year (will let time tell that one), but in that Cardano ADA is better than bitcoin.
Yes! There is every indication that Cardano is better than bitcoin.
Cardano; A Third Generation Blockchain
First of all, the project defines itself as a third-generation blockchain, meaning that it aims at solving problems plaguing its predecessors. So far, bitcoin has shown that it has several vulnerabilities most of which are holding it back from mass adoption. Some of these include volatility, ease of use, mining cost, security, and scalability. Already, Cardano is solving some of these issues like scalability, recording highs of up to 257 transactions per second. And let’s not forget that Cardano is still under development so this number could easily go higher.
The next special feature that makes Cardano better than bitcoin is its support of smart contracts. By doing so, the project is able to fuse bitcoin and Ethereum into one great project. Furthermore, it’s not just any basic smart contract network, the features offered in smart contracts is better than Ethereum’s in a number of ways. If you’re wondering how the project has achieved fusing bitcoin and Ethereum, well, where most blockchains are based on one-layer, that is, settlement or computation layer, Cardano has incorporated both. Cardano users can transact the ADA token from one wallet to another through the settlement layer and have quick access to smart contracts through the computation layer.
Its two-layer feature has made it easy for the project to adapt to different regulations and laws in different countries. It has also made it possible for “soft folks” which is lacking in most projects.
Bitcoin is unable to hold complex data, and it’s only processing basic info, Cardano has introduced a multi-layer data processing system that allows ADA to be stored as a token and a storage facility for contact information. This has added to Cardano’s appeal as it introduces added value to its token.
One of the biggest reasons why bitcoin has been criticized is because of mining. This is because of its consensus algorithm. Bitcoin uses Proof-of-work consensus algorithm to find new blocks and create new coins. This consensus system has proven to be costly, time-consuming and environmentally unfriendly. Cardano has however adopted a different approach, proof-of-stake. This means that ADA cannot be mined but will rather maintain the 45 billion ADA coins that have been distributed. One overlooked advantage to this, is that when the project breaks major milestones and there is demand for the coin, prices will surge.
Cardano is also one of the best-backed projects currently. The team is backed by three primary organizations; Input Output Hong Kong (IOHK), Cardano Foundation and Emurgo from Japan. The organizations have been actively involved in promoting the project’s adoption and in the development of its blockchain. Their involvement and commitment to the project are unwavering.
Lastly, what is by far the best thing going for Cardano, is that it has achieved all this and it is yet to be fully operational. The project is still under development and the team behind it continues to make updates and upgrades every day. Bitcoin is currently fully operational and any changes would take an immense amount of effort.
So again, Yes! Cardano ADA is better than bitcoin and it would not be surprising if it beat bitcoin in the near future.