Bitcoin (BTC) volatility, the lowest since late 2018, has forced investors to turn to altcoins, which could serve as more lucrative investments in their portfolios. Cardano (ADA) was one of the greatest benefactors of this movement. The price rose by around 400% in 2020. The market capitalization has almost quadrupled and exceeds Bitcoin SV (BSV). and it has become the fifth largest cryptocurrency in circulation by market cap.
The recent price hike has shown that the community and industry believe in Cardano’s roadmap, vision, and founder Charles Hoskinson. ANDHowever, the project is still at an early stage. Cardano still has a lot to show in terms of executing his plans and recognizing prominent companies like Ethereum.
However, Ryan Fung, the CEO of Ankr – a company that offers cloud solutions for blockchain applications – is more confident in the proven capabilities of Cardano, the community and its network. He also spoke about his holdings in Cardano and said:
“The price increase has been huge since it has broken through two levels of resistance. We have been watching Cardano for over a year as it evolves from Testnet to Mainnet. The network has developed strongly and the increase has increased. Prices have the strong market sentiment of the project and that Shown the community’s trust in the project. “
Shelley’s upgrade and deployment
The price increase in 2020 skyrocketed after the announcement of the Shelley update on May 25, all the more so when Cordano started publishing the code for Shelley on July 7. This update is said to be unique, as Cardano claims it will make the network 50 to 100 times more decentralized than other known blockchains. In addition, staking cryptocurrencies could reach 1,000 stakeout pools.
In contrast to the proof-of-work algorithm from Bitcoin, Cardano works with a PoS algorithm called Ouroboros. PoS is a method that secures a decentralized blockchain network by allowing people who have the tokens of this blockchain to validate transactions and blockings. This process enables the stackers to earn tokens, also called block rewards, that are proportional to the stake. Fung further noted that the implementation would open competition for consumer acceptance and added: “The implementation is very courageous and challenging. ETH has been trying to do this for over 2-3 years. However, the fact that Cardano was able to reach the consensus protocol on the proof-of-stake algorithm is commendable“”
Cardano’s Incentive Testing Network was first launched in December 2019 to provide rewards for engagement during the Shelley update trial period. Currently, more than $ 13 billion ADA has an interest in ITN.
Smarter contracts, the Goguen era
The term “smart contracts” was introduced by crypto expert Nick Szabo about 26 years ago and was one of the most comprehensive developments in the crypto industry. Smart contracts are computer-controlled transaction logs that are used to automatically execute, control, or document transactions in accordance with the terms of the contract.
For Cardano, the implementation of the Goguen era will take smart contracts a step further towards “smarter contracts”. While smart contracts make manual intervention for interactions in a particular blockchain superfluous, the Goguen mechanism does not prioritize ADA transactions and contracts over other tokens issued in Cardano, as is the case with Ethereum for Ether (ETH). via the ERC-20 token.
See also: Here comes “Shelley”: ADA price stands out with the next Cardano update
Bakyt Azimkanov, Director of Communication and Marketing at Cardano, told Cointelegraph how the Goguen era will create use cases through decentralized use: “The Goguen era will pave the way for mission-critical and decentralized development of intelligent contract applications at company level. This is the crucial first step in building and delivering real solutions in Cardano.Sumit Gupta, co-founder and CEO of CoinDCX, shared his opinion with Cointelegraph:
“Instead of being a single-asset ledger, Cardano is becoming a multi-asset ledger that allows users to define, forge, and transmit their custom tokens over the network. The Goguen update helps developers create decentralized applications in the Cardano blockchain Network with greater flexibility. “
This mechanism is designed to provide developers with more security on the network because all tokens inherit all security and smart contract behaviors, Cardano’s native cryptocurrency ADA, would have. Azimkanov said:
“Smart contracts are particularly useful in deploying decentralized applications based on blockchain protocols. Because of their unreliability, users can interact with Web 3.0 applications without having to entrust their confidential information to the developer, the application, and the developer or creator of the smart contract will receive a guaranteed automatic billing after the contract expires. “
Community interest is increasing
Cardano tried to solve problems that were already found on other platforms like Ethereum and Ripple. This aspect enables the platform to attract more investors without watering down the base of believers who don’t have the currency to speculate or hedge against another bet in their portfolio.
Looking at the composition of the one-year ownership structure, it is clear that Cardano has continued to receive support, with Hodler’s share constantly above 50%. However, the proportion of dealers also increased significantly in 2020, showing that ADA has become increasingly volatile in anticipation of Shelley’s official launch.
Even Ryan Selkis, founder and CEO of Messari, recently said that Cardano has “plenty of room to grow” and that the recent price hike underlines the excitement surrounding Shelley’s improvement offer. The announcement that ADA holders could put their assets in Coinbase custody by the fourth quarter of 2020 further fueled speculation that ADA could be listed on Coinbase later this year.