To begin with, Cardano is a platform for decentralized applications based on a proof of stake blockchain. The platform is permissionless and trustless so there will be no centralized institution when the platform is ready to go and anyone will be able to access it at any time.
Cardano contains a treasury that automatically collects money from transactions fees within its system to fund new projects based on its platform while the governance of users decides who gets this funding. Anyone willing to build on Cardano is free to do so but additionally, you can propose funding this project.
Anyone will be able to deploy smart contracts on the platform and the native asset to power the whole system is called ADA.
Why do people think that Cardano is faster than Ethereum?
Can we please have a technical discussion regarding the scalability of Cardano?
Cardano currently only handles 7 transactions per second on-chain. Ethereum currently handles 12-15 transactions per second on-chain. By tweaking some parameters in the future Cardano could potentially scale to 50 transactions per second on-chain which obviously still isn’t enough for real-world adoption. Cardano will scale off-chain with layer 2 solutions (Hydra). But they are awfully behind their competition in developing layer 2 support.
So why do so many people think that Cardano is faster than Ethereum?
A lot of the frustration with ETH and long wait times/fees is just due to insane congestion. So, Cardano really needs to prove that the network can handle the intense load that having smart contracts will bring.
Ethereum needs to improve the network and make it useable during high congestion times. Will ETH 2 fix this? I mean I’ve invested in both so I hope the best for both!
See and it’s really not one or another. Because having other fun and interesting smart contracts for people to use on different networks will reduce the load on ETH and make fees and wait times better.
Ironically, with ETH2 (probably) going to propel the hype forward just from the name alone and the staking system in place, it will still have its place.
The matter now would be how many of these L2 projects are needed? The L2 projects that appear during the bull run are not assured to hold on the bear market when the ETH layer-1 alone can handle the transaction just fine.
Case in point, the current “end of the bull run”, ETH gas fees are at one of their lowest points, making it actually relatively feasible to make small 50 – 100$ transactions.
Algorand vs ADA for the long run?
Throughout this discussion, remember that ADA currently has about 15x the market cap of ALGO. This means that if the coins hypothetically were to end up equally valued at this moment, you’d see 15x growth of ALGO versus ADA. Let’s take into account ALGO and ADA’s tokenomics over time.
Since about 31% of the total ALGO supply and 71% of ADA total has been released, the price for 1 ALGO would grow 6.55x compared to ADA if they gain the same market cap, if my math checks out.
That being said, I still hold both although more ALGO than ADA for pretty much the precise reason above. Imo ALGO seems relatively undervalued when looking at how much discussion and attention it’s been gathering, even given the remaining distribution of ALGO that is to come.
This also means if you think ADA will end up with double the valuation of ALGO, ALGO growth would end up 3.275x ADA’s price growth. I like both cryptos, but one is just so much more expensive than the other at the moment!
Ada is established but on a very slow path – I like the measured approach, but could also end up being their downfall. Algo is on the move, but by design won’t have tremendous monetary growth for a while. It’s too early to tell for me – have both and keep an eye on them, and will get out if one seems to be going down – don’t be sentimental.
I would say ALGO & ADA, with 30% & 70% respectively
Also, you might consider going for ALGO & DOT, with the same 30% and 70%
DOT has a lower market cap than ADA right now, and it also has a working smart contract. I believe that DOT is seriously undervalued right now, and ADA seems to be a bit over-hyped.
That being said ALGO is pretty awesome, it’s secure, has solid fundamentals, and is extremely fast, and with its current price, I’d definitely suggest going for it.
Cardano staking has officially been live for 1 year today
I know Cardano gets a lot of flack for not having Smart Contracts (which are estimated to be officially launched on mainnet in August this year), but it has been an entire year today since Shelley went live with staking.
I think one thing people need to understand is all cryptocurrencies, unless they’re carbon copies of another, work in different ways.
Ethereum has had smart contracts for a while, but it won’t be until next year until Proof of Stake comes out (not counting places where you can already “stake” it on exchanges)
Cardano only recently is close to releasing Smart Contracts, but decentralized proof of stake has been its core for a year.
Development wise in my opinion it seems Ethereum and Cardano just need a bit more time to get PoS/smart contracts to work perfectly with their ecosystem in the way they’ve developed their network.s
Other cryptocurrencies have smart contracts, but they have a lot less development time compared to Ethereum and Cardano.
Let’s just try to understand that while one feature may be relatively easy for one cryptocurrency, that same feature could take more time for another because of how differently their networks are developed. We should embrace that both Ethereum and Cardano are developed differently and both take more time to develop certain features.
“Ethereum” VS “Cardano” VS “Polkadot” VS “Solana” VS “____” . A Perspective on Tribalism
The decade-old question is, will there ever be a coin that will take over the reins from Bitcoin, and which coin will it be.
Well, none of the above-mentioned coins will.
Crypto is not a zero-sum game, there are no ultimate winners. In my opinion, the cryptocurrency ecosystem will need all of the above-mentioned projects along with several others to continue developing and prospering towards a sustainable and more fair financial system.
There is not one project that can do it all. There is not one project that is flawless or one project that will never have issues. But all projects put together can contribute to the greater good of this ecosystem and together help us give form to a powerful network of blockchains.
Tribalism is blinding us and it’s restricting our vision. A successful long-term portfolio is one that understands the needs of the overall crypto-verse and invests in projects that are and will be necessary for the proper smooth functioning of the ecosystem as a whole.
All coins offer something in one way or the other. Even those coins you consider shitcoins are useful. There might be people who got introduced to crypto because of them and others who made profits and are now investing in other bigger projects with their gains.
Focus on the future, be smart, and ignore the noise. This is still the beginning.
The Cardano Project’s work in Africa
Let me start by saying, no I’m not a Cardano shill, and I’m not telling you to invest in it; I’m simply using it as an example here to showcase that crypto is far more than a fun thing to gamble your money on.
Cardano recently announced its ambitions to help elevate underdeveloped nations, one way is that they want to “bank the unbanked”. Essentially, give people access to more stable and substantial financial services, who would otherwise not have it. The impacts of this could be MASSIVE in countries that are often stricken with political turmoil and local fiat instability. This gives individual citizens, as well as bigger institutional investors a safer way to store their money if a conflict or other variables threaten to devalue the local fiat.
I addition to adding an option for more stable finances, they are also hoping to lay down a foundation for African nations to take advantage of. Imagine an Ethereum network, but with the goal of letting underdeveloped nations have a chance to utilize the full capabilities of blockchain to improve the lives of their citizens. One example was outlined in a deal between Cardano and the Ethiopian government.
Ethiopia plans to use the ADA
Ethiopia plans to use the Cardano blockchain to track student’s progress in education, to determine how to improve said education. But just as with Ethereum and other similar networks, the possibilities are pretty unlimited. Something as simple as improving national education standards in Ethiopia would be a MASSIVE and EXPENSIVE undertaking that could never be afforded without the help of blockchain technology. And the impact of improving education could be astronomical. Seeing any movement like this makes me very happy, and very hopeful.
Sure, crypto is a really fun hobby and money make for most of us. It is fun to watch the (green) charts, and read up on new projects. But let’s not forget that the crypto-sphere is way more than an alternative to the stock market. Many of these projects are driven by extremely driven (possibly delusional sometimes) teams, with ambitions to make the world better for all of humankind. This is the reason I can handle the dips and red days without feeling too down about it; because I truly believe crypto and blockchain tech is the future.
They will continue pushing the boundary and could help solve some of our biggest humanitarian crises. So even if I lose some money on ambitious projects that didn’t pan out, I feel good knowing that I am still an active part of bringing in a more positive future for humanity.
Fiat currency has been ruined by corrupt government and greedy corporations; crypto will certainly have its fair share of that in the near future. I just hope we don’t lose sight of the possibilities it puts in the hands of the “non-elite”