Cardano (CCC:ADA-USD) suffered a major downtrend as more people flocked to safety during the last few months. This could continue in the short term, which is why long-term investors need to focus on the underlying technologies being built within this industry instead of focusing solely on price movements alone when making decisions about investing their money.
Cryptocurrencies present us with new opportunities to rethink how money works. But they also have their limitations. They’re not only capable of shooting up in value. But they can also crash down to earth-shaking levels with extreme precision and fast speed.
The cryptocurrency world is a tricky one. It’s not uncommon for things that seem great on paper to turn out poorly in reality or vice versa. The good news? You don’t need me (or any other expert) to tell you which way things usually go — you’ve got this covered already because of how diverse cryptocurrencies can be depending upon your needs/desires.
Cardano is a third-generation blockchain that’s fast becoming the go-to for those looking to make their smart contracts and decentralized applications. It offers low fees, energy efficiency with an environmentally friendly footprint. Companies and major financial institutions worldwide are adopting the blockchain for scalability advantages and ease of use in commercial applications. Due to its robust development roadmap, it is one of the best cryptos out there right now.
Unique Blockchain Architecture Sets Cardano Apart
Cardano is a cryptocurrency growing in popularity and can become one of blockchain technology’s most useful projects. The community is also optimistic about this future, which sets them apart from other coins on offer today.
The open-source blockchain team conducts extensive, systematic efforts to make their findings known across the globe. The members of this group have published academic papers on topics related to blockchains which can help guide future development and ensure scalability across different platforms.
The Cardano blockchain is different from most other blockchains because it has a unique dual-layer system. The settlement layer (CSL) is an innovative solution that will revolutionize how we do business. It’s like sending money through email. Except it costs practically nothing and happens instantaneously. At the same time, its computational core provides the foundation for all of Cardano’s functionality — including smart contracts. The CSL is a secured, decentralized network that operates separately from this flexible layer. It creates a safe haven for all your smart contract needs, ensuring they work as intended and nothing else can happen. It simultaneously protects our security with multiple layers for prevention against DDoS attacks and other potential threats such as unauthorized access or infiltration by hackers.
With its use of a universally recognized and secure programming language such as Haskell, the Cardano blockchain ensures that it will be able to scale comfortably without any interference from hackers. The proof-of-stake (PoS) consensus mechanism but with an added twist, uses permissioned versions of Ouroboros family protocols offering greater security than at lower energy costs.
Cardano’s Roadmap for 2022
The Cardano blockchain is looking to address three major challenges faced by other layer-1 networks. These are scalability, interoperability, and sustainability — all of which this new cryptocurrency strives hard at achieving.
The Cardano network has been through five major eras, each with its unique update to the functionality of this cryptocurrency. The future of blockchain is now in a new era. After its recent upgrade, the road will lead us towards the Basho period. That is where scalability rules supreme and smart contract development becomes available for developers.
Both the Goguen and Shelley eras have helped Cardano reach new heights. The first era optimized the decentralization of its network while adding smart contracts makes it possible for enterprises to undergo their development projects on this blockchain. The Basho era is instrumental in making Cardano more scalable and interoperable. One project the team worked on was improving their network’s scalability, which they did by designing Hydra to address potential problems faced at higher volumes of traffic for this cryptocurrency — it’s expected that Cardano will support one million Transactions Per Second (TPS) with ease.
Additionally, Basho plans to introduce sidechains for Cardano. These interoperable chains will use sharding and increase the capacity of networks. Overall, the Basho era will bring Cardano to a whole new level.
Cardano will have an autonomous system with voting and a treasury in the future. As a result of these new additions to their network, participants can use their rights to decide how development goes. With Voltaire, Cardano will reach its goal of full decentralization. The network participants can use their stakes for voting and steering development decentralized through Cardano improvement proposals (CIP).
Peer-Reviewed Development
The Cardano team is not one to play around. They’ve made it clear that they know what’s coming next. And you can stay up to date with these findings, thanks in large part because of this foresight when investing your money into an emerging player like ADA-USD.
Cardano updates go through a rigorous scrutiny process. But they also rely on peer review before making any changes or updates. This slows things down compared to other platforms, where bugs can easily sneak through the cracks and cause problems later down the road — something we don’t want. But it’s worth taking more time today if that means smooth sailing into tomorrow because at least you’ll know what your users will experience in the future.
To become a self-sustaining, completely decentralized network, Cardano needs the help of its community. It is currently working on two more stages to take it one step closer to this goal.
Cardano Is a Relatively Safer Investment in the Cryptoverse
One of the most exciting things about blockchain technology is decentralization. For example, a company could potentially offer their product at better prices because there would no longer be any need for intermediaries or brokers who take hefty commissions along with other fees — all they need are customers willing to buy.
But while this transition seems inevitable on paper (with blockchains providing trustworthiness), things aren’t always so easy when put into practice. Therefore, when investing in this space, you need to proceed with caution. Cardano is a blockchain that’s currently in an early stage. It has ambitious goals and its developers are taking a methodical approach towards introducing upgrades.
Along the way, the development team will give you more catalysts for success. For example, the Cardano project has been on an upward trajectory recently, with prices of virtual land in their latest game rising exponentially. That is the benefit of having a developer team that is constantly on the move.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. You can check out his analysis on InvestorPlace and TipRanks.
