Cardano could be the future of finance
It looks like a new cryptocurrency or blockchain platform that fans say will âshake up the marketâ appears every year or so. And no, cryptocurrencies haven’t done away with fiat currencies yet. But this futuristic development could still happenâ¦ with enough support.
That being said, the new crypto platforms and types of blockchain are to move the industry in new and exciting directions. And Cardano (CCC:ADA-USD) is at the forefront of this evolution.
Today, let’s break Cardano down and compare its value directly to the US dollar.
What is Cardano?
Cryptocurrency could indeed be the way of the future. More people are investing in crypto than ever before, and over 73% of Americans expect crypto to eventually replace the dollar. With that in mind, it’s important to understand how Cardano stacks up against other cryptocurrencies on the market.
Cardano is relatively new – and itself is not a cryptocurrency. Instead, it’s a new, third-generation blockchain platform that offers an efficient alternative to the standard Proof of Work (PoW) network used by Ethereum and similar coins.
Instead of proof of work, Cardano uses a more decentralized proof of stake (PoS) platform. As a result, Cardano has improved scalability and sustainability over many other cryptocurrency platforms, including its main competitor, Ethereum (CCC:ETH-USD).
Why is this important?
Well, proof of stake systems minimize the energy required to facilitate a blockchain system. As an added bonus, limiting the number of devices that can verify a trade can prevent market capitalization seen with Bitcoin (CCC:BTC-USD) and Chinese BTC farms or machine collectives.
Cardano’s main cryptocurrency is called ADA. Like Bitcoin, ADA only has a limited supply of coins (although it is well above Bitcoin’s 21 million BTC limit). The ADA limit is 45 billion coins. As of this writing, there are over 32 billion ADA in circulation. In theory, this will prevent inflation up to a maximum amount.
Benefits of Cardano
Cardano’s proof-of-stake blockchain platform and its ADA currency are gaining a lot of attention due to several key advantages that competitors must now try to match. On the one hand, Cardano is energy efficient. This is in stark contrast to other less environmentally friendly crypto coins like Bitcoin and Ethereum. Cardano only uses around 6 GW hours of energy per year, while Bitcoin consumes over 100 TW hours of energy per year.
In addition, Cardano is able to handle a large number of transactions. Unlike other cryptocurrency platforms, Cardano has excellent scalability. Through testing, it has so far processed 257 transactions per second. In theory, it could potentially reach 1 million transactions per second, pending an upgrade to the blockchain platform called Hydra.
Cardano can also be suitable for a wide range of uses, such as tamper-proof student record storage, pharmaceutical order authentication, and personal records tracking for important consumer financial metrics like creditworthiness. Blockchain startups like this are thriving on recent investment, so it might be a good idea to bet on Cardano’s eventual versatility.
That said, not all crypto exchanges currently offer Cardano or ADA. Time will tell if this blockchain platform is adopted as easily as its predecessors.
Cardano ADA to USD
As of this writing, a single ADA digital token is worth $ 2.15. This is a significant increase from how ADA started in September 2017 when it was only $ 0.025 (i.e. less than 3 cents).
Cardano experienced another growth spike in August 2021, reaching a record high of $ 3.0992. It has since fallen to its current value, but there is no denying the growth potential of this crypto platform. Does that mean Cardano is a garish buy? It could be, depending on your goals.
Ultimately, it remains to be seen whether Cardano will become the next standard for blockchain consensus building or whether Bitcoin’s original model remains king. Like all cryptocurrencies, you need to invest responsibly when working in this volatile market. Still, Cardano’s new proof-of-stake model will certainly do what it promises and shake up the crypto market – for the better, hopefully.
At the time of publication, Kiara Taylor had (directly or indirectly) no position in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.