about Angel Di Matteo
Here are some myths and facts about it Cardano, The project Blockchain Whose symbol attracts the attention of many investors and enthusiasts.
Although a few years went by and went unnoticed, today it is a project Blockchain Which is catching the attention of many people within the cryptocurrency ecosystem Cardano, Code from exist It has recently reached all-time highs and there are many medium and long-term business prospects.
However, despite the recent turmoil so far Cardano As a symbol exist Born in major societies, there are still many myths and vague beliefs among those who support and do not support the project.
Here we uncover some myths and facts Cardano, The project Blockchain Which is very popular these days in the field of cryptocurrencies. With this we begin a new section in Daily Bitcoin Where we will answer what is true in some of the rumors spread within the coding ecosystem.
1. Cardano It had a better commercial development than Bitcoin It is 2021
Although the price Bitcoin It’s currently close to $ 60,000, and that’s from Cardano It’s barely close to 1.4 USD, so if we assess the percentage growth these cryptocurrencies have achieved throughout 2021, then we have to. exist The performance was more pronounced than BTC.
We can verify this by comparing the corresponding graphs of each of the cryptocurrencies
Bitcoin price evolution in 2021
ADA price evolution in 2021
More clearly, if someone invests $ 1,000 in any of these cryptocurrencies on January 1, by the time of publication, the following profits will be capitalized:
- With BTC Will be on the verge $ 1.720 USD – The net balance $ 2.720 USD
- With exist Will be on the verge $ 7,777 USD – The net balance $ 8.777 USD
2. Cardano It is just a copy of it Ethereum Offers
Although Charles Hoskinson (CEO of IOHK And the main developer of Cardano) I worked on developing Ethereum, The idea he’s been promoting for years with his team is completely different from what the second most popular cryptocurrency network has to offer today.
In this sense, it is between the aspects that differentiate Cardano From Ethereum Highlights include:
- Cardano It is a project that started from scratch, and took about two years to create and launch the first version of the network. This takes a lot more work than just doing a file a fork (Alternative version) from Ethereum, For his sake the code is simply copied and the required changes are implemented.
- The project Cardano It was programmed in a language called Haskell Which varies widely as to what is allowed hardness about Ethereum.
- Consensus algorithm for Cardano is called Ouroboros, Which is based on Proof of Stake (PoS) LLC Participants in the network are allowed to make profits by putting money as collateral. This is different from Proof of Work (PoW) Works before Ethereum Miners must have specialized equipment to perform this task.
- Goal Cardano Is to become Blockchain Internet, So its ultimate goal is to achieve interoperability with many other networks. Ethereum Its idea is to become the universal computer, which acts as a support for all applications based on block technology.
Starting with these fundamental aspects, it is understood that both projects develop in very different ways and go along different paths.
3. Development Cardano It is very slow
While looking at him from the outside Cardano Not moving as fast as other initiatives within the sector Blockchain, Optimizing product development according to strict scientific principles is more important to Hoskinson and his team than releasing something that could be buggy and require major corrections.
In this regard, Hoskinson has commented in the pastl “does not mean anything” Be the first to push the proposals within the industry, because they don’t realize it ‘Like a competition’ Network selection Blockchain Or others.
However, a team Cardano I was transparent when talking about the development of the project, as Hoskinson was the one who had close contact with the community to report the progress weekly / biweekly. At the same time, the roadmap for developing the network remains the same and the developers are working to achieve the goals set there at a rate that ensures the optimum operation of the updates.
4. Cardano It has no use case
according to Cardano It is a project that is about to reach the third stage of its development, at the moment it still does not have the support of smart contracts so that interested parties can start operating their products and services on a network basis. Blockchain.
However, digital currency exist By itself it has similar functions to functions Bitcoin And other market advocates, so it is possible to send, receive and store tokens, in the same way that you can save, and you can even make profits by makingTaking (Putting money as collateral) to support network processing blocks. It is worth noting that at the moment Blockchain It also has community voting support (Catalyst)And recently after an update “Marie” It already supports creating new digital assets locally.
Regarding its development, Cardano Successfully complete the stages Byron (Network startup) and Chilean (Decentralization and staking). The team is currently preparing to launch Gogin (Smart contracts), as the network will have support for various use cases such as decentralized applications (Dapps), Exchanges decentralization (DEX), Decentralized financing services (DeFi) And many other things.
Thinking about the future, Hoskinson and his team were forging ahead with efforts to forge alliances with governments and private enterprises, specifically to support them in developing solutions once the network had its support. In this regard, the lead developer of Cardano It has already announced that about 100 projects are operational in Ethereum They will be ready to migrate as soon as the update arrives Gogin.
Additionally, it is working with African countries on projects for their use Cardano On issues of digital identity citizenship.
5. Cardano It will be the network Blockchain This will go beyond Ethereum
We do not know!
While it is indisputable that Ethereum It operates as a network with the largest number of decentralized applications and use cases in between Blockchain The network is currently facing issues in terms of scalability and cost of operations, which has led to operational issues for many projects due to velocity and solvency issues.
according to Cardano Not yet in the development stage as it can support smart contracts, it is still too early to predict whether this network will outperform. Ethereum In terms of supporting use cases and initiatives based on Blockchain, Although many are waiting to see if this will finally happen upon an update Gogin.
Currently, there are certain networks that support smart contracts that are gaining great popularity among enterprises interested in working with them Blockchain, Among them stand out Smart Binance Series (BSC), Bolcadot, Avalanche, NIM, Stellar, TRON And others more.
On the other hand, a team Ethereum It is developing version 2.0 for its network, for which it launched Phase 0 of the project at the end of last year, thus enabling the security funds system. There is still time to see the operating results, but these results are expected to arrive in the next two years.
6. Each exist More than $ 100 USD
Not likely to happen!
Although the price of any asset in the market is mainly regulated by supply and demand, an important aspect of ensuring the value of any symbol has to do with the number of units traded.
In this sense, we see that the total exist The circulation in the market exceeds 31,948 million units. This number significantly exceeds more than 18.6 million BTC And 115.1 million ETH Issued, said coins They have value in the markets mainly due to scarcity.
Total ADA traded against other cryptocurrencies. Image from CoinMarketCap
Idea that exist It could hit pricing above current prices, but it seems unlikely to hit around $ 100 per unit given that there are still many tokens to be released, with the cap being set at around 45,000 million.
7. How about exist It is just another financial bubble
It is relative!
The commercial development of all cryptocurrencies is closely related to the topic of speculation, and exist From Cardano Not an exception.
We’ve seen how some ads have positively benefited the digital currency. For example, it was recently incorporated into business listings for Queen Piece s Coinbase Pro, As well as announcements of important companies interested in saving money exist. However, what was seen regarding Cardano Is that its growth has followed a somewhat organic pattern, mainly related to the ads related to its launch and updates.
We repeat that although expectations are made in the short, medium and long terms, no one knows exactly what might happen to the price of the digital currency, as its price is subject to many variables that are not under the control of the development team.
If you want to know more about Cardano, We recommend the readings below:
Article by Angel Di Matteo / Daily Bitcoin
Main image of Pixabay, Edited by Daily Bitcoin
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