Cardano was originally designed to be a cryptocurrency that does it all. It has incredibly ambitious goals, but it has some issues it will need to overcome to achieve them. It is, perhaps, the third generation of cryptocurrency, following on from revolutions like Bitcoin and Ethereum. It aims to have all the crypto functionality, while simultaneously overcoming the problems we’ve seen in other altcoins.
First of all, Cardano can be updated without the need for hard forks. The traditional way of updating a cryptocurrency can be slow and unreliable, and dependent on convincing a sufficient number of people to get on board with the new path. This can cause stagnation, and the risk of value falling. Cardano’s ADA can be upgraded with ‘soft forks’, which are backwards compatible and enable users to choose whether or not to implement them. Furthermore, Cardano is mostly operated centrally, which can improve the efficiency of its running. Some purists may see this as a flaw, but it does mean users can expect a better experience with the technology.
Transaction fees for Cardano are negligible, even with complex smart transactions. This helps overcome the issue of slow and expensive transactions that is plaguing Bitcoin and Ethereum. And it is simple to use for both users and developers. Cardano’s specially-designed wallet, Daedelus, offers a very user-friendly experience, which will be very appealing for frustrated altcoin users.
The proof-of-stake mining in Cardano allows miners to acquire new coins and operate the blockchain by holding currency. This is a very efficient method, but is difficult to programme reliably and keep secure. Developers for Cardano claim that their proof-of-stake mining system is mathematically proven to be secure, and the system offers an incentive for users to hold on to large amounts of ADA.
With all the potential in Cardano, it’s no wonder that many analysts and experts are expecting the altcoin to hit $100 in 2018. The maths and the features make exciting reading, so predictions for Cardano seem not to be unrealistic.
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