The Long-Term Bullish Case for Cardano (ADA)

#1

Other than Cardano, none of the 10 largest cryptocurrencies by market capitalization are based on peer-reviewed protocol. On top of that, no cryptocurrency in the top 10 was implemented using a formal specification, except Cardano.

This is the current standard in cryptocurrency that Cardano seeks to change.

The team led by Charles Hoskinson relies on a methodical and academically-oriented approach. They adhere to a set of scientific principles that includes:

  • The formal verification of code, which means to know with certainty what functionalities a program is capable or incapable of doing.
  • The ”first-principles” approach or breaking down things into their fundamental truths and then making developments from there.
  • Peer review, which is the academic and scientific evaluation of the protocol by other professionals in the field.

With this philosophy, long-term investors will be getting a platform created with the highest standards of safety and quality. More importantly, the peer review helps ensure that the theory is solid and that the platform will work as advertised.

The drawback, however, is that the development of Cardano will take time… a lot of time. Think of a miracle drug or vaccine in the early stages of development; that’s Cardano. If you are an investor who can afford to wait, this miracle drug might just work wonders on your net worth.

Interoperability

Now that you know the vision, the motivation, and the methodology that drives Cardano, it’s time to explore what sets it apart from its competitors.

Imagine a platform where you don’t have to log in to an exchange to buy and sell various cryptocurrencies. Instead, you’d convert cryptocurrencies into fiat and see the balance immediately reflect in your bank account. That’s what Cardano promises to accomplish.

The cryptocurrency aims to provide an ecosystem where a user can transfer value and information between different blockchains, as well as the financial legacy system. According to Charles Hoskinson, Cardano seeks to provide this ecosystem in the next few years where users can interchange cryptocurrencies, such as Litecoin to Bitcoin to Ethereum to Cardano. On top of that, the system also aims to enable users to communicate with their regular bank accounts or even their credit cards.

In a nutshell, Cardano aims to bridge the gap between the cryptocurrency industry and the traditional banking system. If accomplished, this might be the catalyst for the mainstream adoption of crypto. In addition to that, billions and billions of new funds might flow into crypto because there’s a system that allows the legacy financial system to communicate with the crypto industry and help ensure compliance.

As a long-term investor, the development of these features make Cardano extremely attractive. These functionalities alone, if successfully developed, can make the cryptocurrency bullish in the next five to ten years.

Scalability

For Cardano to be the bridge between many cryptos, as well as crypto and the traditional banking system, it must be scalable. What this means is that Cardano should be able to handle hundreds, if not thousands, of transactions per second (TPS). To give you a better perspective, Bitcoin can handle 7 TPS while Ethereum can do 15. Currently, Cardano does between 50 – 250 TPS.

Although Cardano’s TPS is significantly higher than that of Bitcoin and Ethereum combined, it is still not sufficient to help Charles Hoskinson reach the goal of creating a financial tool that will be used by billions. This is why the team is working hard to develop the Ouroboros Hydra. This is a proof-of-stake system that highlights the sharding functionality.

In a nutshell, sharding enables a consensus protocol like Cardano to boost its processing speed as more nodes (stakeholders or miners) participate in the system. Ideally, the more participating nodes or stakeholders, the higher the processing speed. Below is a video of Charles Hoskinson explaining how he and his team plan to significantly increase the scalability of Cardano:

With the Ouroboros Hydra, Cardano’s TPS go as high as tens of thousands. This enables the cryptocurrency to surge ahead of Visa, which handles an average of 4,400 TPS. More importantly, this makes the platform and the network robust enough to serve billions of people.

Bottom Line

Cardano is not limited to the functionalities that we mentioned above. It offers so much more but the reliance on scientific rigour to ensure quality and safety along with interoperability and scalability are the three qualities that can make Cardano the runaway cryptocurrency leader in the coming years. Even though the altcoin is still a speculative play, our research suggests that Cardano is a solid investment for a long-term fundamental pick.

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Cardano: A Next Generation Blockchain Platform
#2

This is currently my biggest holding, tied with ICON.

I’d repost this article in the official Pub Cardano discussion, however it won’t let me (you can only post 3 times in a row in a discussion, as no one else has posted anything in months).

A shame that such a strong project is going overlooked here in the Pub.

Anyway, thanks for the post!

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#3

Seems awfully similar to Ethereum and will likely release a scalable chain much later than ETH.

There are so many chains going into sharding and cardano will probably be one of the latest to be released. Not too good for adoption imo.

although it has very little substance, it has pretty good marketing!

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#4

Is current price a good entry into ADA?

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#6

https://hacked.com/cardano-price-analysis-ada-still-undervalued-after-flipping-usdt/

Cardano: A Strong Case to Buy

Despite flying under the radar for the past year, Cardano has emerged as one of the best value drivers for long-term investors. The platform’s peer-review approach to cryptocurrency allows the developers to embrace “a collection of design principles, engineering best practices and avenues for exploration” not available on other blockchains.

Cardano recently underwent a successful hard fork that paves the way for Shelley, the next critical development phase. The hard fork had no impact on investors as the technical upgrade was planned and agreed upon by the federated system.

Later this month, Cardano founder and CEO Charles Hoskinson will provide an update on the project roadmap, which is expected to undergo a major evolution through 2020. The roadmap will be presented at the upcoming IOHK Summit April 17-18.

Beyond these developments, Cardano is also among the top ranked cryptocurrencies in circulation, according to CoinMarketCap. The website’s Fundamental Crypto Asset Score (FCAS), which tracks user activity, development behavior and asset majority, gives ADA an ‘A’ rating. Only ZRX and Ethereum are ranked higher. At last check, the FCAS score was a few points below its record high.

In terms of price level and performance, ADA is still trading 92% below its record high but has returned 327% since inception.

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#7

Motivation Behind Cardano

The development team behind Cardano is led by Charles Hoskinson. This is the same Charles Hoskinson who co-founded Ethereum with Vitalik Buterin. Hoskinson’s primary goal is to deliver a blockchain-based financial tool that can be accessed by billions of people across the globe.

Ethereum was a good first start but it was not the technology that could help him achieve his primary goal. He looked at other cryptocurrencies and was not satisfied. There’s no cryptocurrency in existence that offers the following characteristics:

  • Impeccable quality through sound research
  • Interoperability
  • Scalability

In Charles Hoskinson’s mind, these are the qualities of a blockchain-based financial tool that can be effectively used by billions of people around the world. Thus, Cardano was born. As a long-term investor, this is what you’re betting on.

Impeccable Quality Through Sound Research

Most, if not all, cryptocurrencies are based on a white paper implemented in the form of code or protocol. In many cases, no one understands the technicalities behind the white paper. Even worse, there’s no regulating body that verifies whether the code or protocol will actually work or if the claims are legitimate. Nevertheless, billions of dollars are pumped into the industry.

Other than Cardano, none of the 10 largest cryptocurrencies by market capitalization are based on peer-reviewed protocol. On top of that, no cryptocurrency in the top 10 was implemented using a formal specification, except Cardano.

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#8

I love this misconception that Cardano is still mostly theory, and “has very little substance”. I think people who have underestimated Cardano are about to get one hell of a rude awakening. In a few weeks when Shelley is released, Cardano will become one of the most developed and advanced blockchains in the space. Between Shelley, Oroborus, Plutus, and Marlowe, this project is shaping up to be a dominant force. :muscle:

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#9

Probably but you might want to research it

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#10

It’s really not a misconception. Most of ETH’s potential is also still mostly theory.

I think you are over hyping Shelley. It’s a PoS algorithm that being released.

@AmorFati Where did you get the idea that other coins weren’t peer reviewed/evaluated by loads of people?

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#11

The PoS algorithm is actually Oroborus, which is a big deal in itself, however Shelley is what brings full decentralization, staking, etc. It’s essentially the real launch of the network, and the culmination of four years of work. It’s a very big deal.

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#12

Yes and there are already hundreds of platforms that aren’t centralized and you can stake your money on. It’s not revolutionary and won’t suddenly catapult cardano to the top

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#13

The criticism towards Cardano has always been that it’s only theory, and with no actual product. Shelley changes that. It will single handedly be the greatest achievement or milestone in the projects history. It also brings Cardano to a state where it will then have the capacity to compete with other top platforms.

Downplay it all you like, but it’s a huge deal for Cardano.

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#14

Even with Shelley is still has very little substance. Cardano is still super slow, can’t scale and has very little dev interests. Maybe it’s big for cardano but that means nothing. Compared to the rest of crypto it’s not a big milestone at all.

Wanchain recently converted to a fully PoS and decentralized blockchain. Sure it’s big for Wanchain but no one really gave a shit ( probably including you ).

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#15

I think you missed the part where other people are entitled to their own opinions. I’ve already said that I think Shelley is a big deal. I’ve also already stated that I think Oroborus, Plutus, and Marlowe and ground breaking. I’m entitled to these opinions regardless whether you agree or not.

You troll every single discussion where Cardano gets mentioned. We’ve known your opinion for a year now. I’d love to have a conversation on here with my fellow Pub members without you always showing up trying to discredit the project. So how about respecting other people and just accept that some people like projects that differ from your precious EOS, XRP and BCH?

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#16

If you don’t want to discuss things with me, don’t continuously reply to my messages and pretend like you want to discuss then suddenly switch up on me.

You can’t seriously expect everyone to have the same opinion? I’m sure if I talked to you about how great a project cardano was you wouldn’t call that trolling.

I don’t disrespect people for having an opinion. I just discuss. No issues if you were to comment on every EOS post about your opinion on why you think disagree with it.

The guy made a post on a forum for a reason, for discussion.

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#17

And here lies the disconnect.

If I went into the EOS discussion, and criticized it weekly, it would not be adding to the discussion. It would be outright trolling.

Making your argument once, or maybe even twice. That’s discussion.

But posting the same shit on every single Cardano related topic… for a year straight… that’s just not appropriate, and borders on trolling.

You’re entitled to your opinion. As do I. We don’t have to agree. But there’s a time to express it, and a time to keep it private. Not every Cardano thread needs to hear your opinion.

Anyway, as always, I’m done. Moving on.

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#18

But posting the same shit on every single Cardano related topic… for a year straight… that’s just not appropriate, and borders on trolling.

:joy: What are you talking about? This is the first time I’ve talked about cardano in literally months.

I wasn’t even replying to your post on this thread. You replied to me and now your mad at me for discussing it with you?

I dont understand you man

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#19

Which ones went through the peer review process outside of Cardano?

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#20

All of them have gone through tons security audits from many different entities and have dealt with hackers literally attacking their chain for years. This provides more security than any peer review could.

Any coins that are currently live and working have gone through more rigorous testing than any peer review could with people constantly trying to exploit the blockchain to steal money. For example, Ethereum, EOS, XRP, XLM, Tezos have arguably been tested much more thoroughly than any peer review process could do because their chains are live and are constantly being attacks by hackers trying to steal money.

Exploits are still found to this day on bitcoin which is the most secure blockchain in terms of code ever built and it no doubt that has been audited and attacked from every angle probably 1000 times more than Cardano. Cardano’s peer review process is overrated.

here’s a peer review on Ethereum by a really reputable guy: https://medium.com/@muneeb/peer-review-cbc-casper-30840a98c89a

This peer review shit is all just a marketing for cardano because they have no real product, nothing they’re making is that innovative and they are years behind competition.

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#21

It’s in the top ten. It has Charles hoskinson behind it.

It’s bullish long term haha

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