Investors and traders have taken great interest in Cardano (CCC:ADA-USD) of late. I’ll state out of the gate that I am personally a fan of the project. I’ve written before that I believe the 10,000 foot approach the company uses to market itself is wise.
Too often, investors and traders alike are left scratching their heads while trying to digest the latest news about the “It” altcoin. The same is true of leading cryptocurrencies including Bitcoin (CCC:BTC-USD) and Ethereum (CCC:ETH-USD).
It can be very tough to wrap one’s mind around cryptocurrency. Once one understands the technical aspects of a particular cryptocurrency, the question of utility arises.
And that’s why Cardano’s latest news makes me more enthusiastic about ADA and the entire project.
I’ll start by reiterating a point that I made in a previous article on Cardano. That is that the company has a leg up on its competition in that it lays out the clear utility of the project through use cases across multiple sectors.
A Closer Look at Cardano
The company’s enterprise platform lays out how Cardano is building a platform to accommodate usage in education, retail, agriculture, government, finance and healthcare. The common thread among these disparate verticals is that each suffers a high degree of centralization.
It’s important to remember that one of the central tenets of distributed ledgers and the blockchain is simply decentralization and accountability. I may be pivoting onto a tangent here, but every time I consider crypto I tend to think about what it all really means.
Again, that’s why I like Cardano: The company is transparent in what it is attempting. Part of that transparency is the development of those aforementioned use cases.
Education in Ethiopia
On April 29, IOHK, the company behind Cardano and ADA, announced Cardano’s blockchain technology will be used to revamp Ethiopia’s education system. The R&D team at the company is building a system that identified students and teachers, performs digital grade verification and allows for the remote monitoring of a school’s performance.
One benefit is that the system will create a tamper-proof system for recording information related to five million students across 3,500 schools. Ethiopia’s education minister Getahun Mekuria believes blockchain technology can widen access to higher education and employment in the East African nation. Let’s hope so.
I know I’ll personally be following the project to see what the results are. More importantly, Cardano is indeed building out a use case in education, as its enterprise portion of its website explains:
“Atala PRISM gives students ownership and control of their academic achievements, with no third-party intermediaries, while removing friction and costly inefficiencies from the process. The result? A seamless way for students and job seekers to prove who they are and what they have achieved.”
Investors and traders should take this news as a good sign. IOHK will announce use cases across those other enterprise sectors. As it does so, Cardano and ADA are sure to garner more and more attraction.
The Bottom Line on ADA
ADA has already passed the important psychological threshold price of $1. That happened a few months ago. It’s part of an amazing run in 2021 that has seen ADA appreciate by more than 600%.
Since Cardano and Dogecoin (CCC:DOGE-USD) are capturing so much headline space these days, I’d like to compare the two. Dogecoin currently has a market capitalization of $47 billion while Cardano carries a slightly smaller $42.8 billion market cap.
Although Cardano has been on a tear in 2021, Dogecoin has been even hotter, rising almost 8,000%. I simply want to make the point that Dogecoin still has done nothing. It has no identifiable utility, and yet it is regarded as equivalent to Cardano in market cap terms.
I believe in Cardano, I don’t believe in Dogecoin. Cardano will become an amazing cryptocurrency that will appreciate several-fold again. I suggest considering the company and an investment therein.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article.