Cardano has recently stated that due to the fact they have started their own technology from scratch they are going to soon be ahead of cryptocurrency giants Bitcoin and Ethereum. It is their goal to beat them both in the market and have publicly announced this intention. So how do they intend on doing this?
Cardano is currently 6th in the market with an $8.7b market cap compared to Bitcoin and Ethereum which are reigning over other cryptocurrencies in the top spots. Before Cardano can even hope to achieve number one status they must first gain value over Litecoin, Bitcoin Cash and Ripple.
They will also have to solve several issues that have plagued other cryptocurrencies such as lack of flexibility, slow and expensive transactions, limitations due to protocol, proof of stake and demand that overwhelms systems. They claim they can solve these issues thanks to their new flexible and revolutionary democratic crypto system.
The makers of Cardano have used a generational analogy to explain how they will make system improvements. According to them, Bitcoin is the first generation of coins. It was only meant for peer to peer transactions via a decentralised blockchain technology. Ethereum is the second generation. It adds smart contracts onto the previous generation so you can have rules and programmed protocols while transacting. The problem with this model is scalability. Cardano was created to fix this and other problems of the first two generations. They can scale the coin and technology because their community can vote on systemic improvements.
They also have a strong development team which includes former co-founders of Ethereum. They claim knowing the developmental history of previous generation bitcoins will allow them to learn from past mistakes and build a new cryptocurrency “from scratch”, rather than building on top of another platform.
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