in Cardano (CCC:ADA-USD) Upcoming team updates could lead to wider adoption of ADA by the end of the summer and beyond.
We have already suggested that Cardano is one of the best green coins in the news in recent memory.
In case you missed this article, we’ve completed the Cardano sustainability comparison. Bitcoin (CCC:BTC-USD) as well as Ethereum (CCC:ETH-USD) Resource intensive extraction protocols. And the ADA blockchain is not only slightly more efficient …
This is four million times more energy efficient.
And now that Cardano smart contracts are finally here – the team is slated to release in September to the general public – our optimistic view of Cardano’s future sustainability has intensified.
Cardano desperately needs smart contracts
Cardano aims to join the functional ranks of Ethereum and other competitors with the planned implementation of smart contracts.
Smart contracts, if you’re wondering, are the most significant difference between BTC and ETH. Without them, Bitcoin can only be used as a currency. With their help, Ethereum can be used to create decentralized applications.
These “dApps” run games, decentralized exchanges, and other innovative applications that have led to the popularity of Ethereum. Basically, a smart contract is a piece of immutable code or program that acts as an intermediary between two or more parties during a transaction.
Human third parties in non-blockchain environments can be malicious or greedy. They may say they will take X and return Y, but there is no reliable system that prevents them from backing off on their word.
Blockchain transactions, which are not always monetary in nature, can be secure and reliable thanks to the existence of smart contracts.
This is because the smart contract code never changes. In fact, smart contracts exist on the blockchain along with all other transaction data, which means that even developers cannot change these contracts anywhere. This provides transparent, fast, and open source code.
The sooner Cardano can roll out its smart contract functionality to the general public, the better. This is due to the fact that Ethereum is simultaneously trying to solve the scalability issues of its network.
The longer it takes Ethereum to scale effectively, the better Cardano’s ability to fill a “scalable and efficient” cryptocurrency that Ethereum would like to claim does not exist.
And Cardano is not far behind. At the moment, being the # 4 cryptocurrency, Cardano seems to be the best against Ethereum. The only coin between Cardano and Ethereum is the stablecoin.
Stable coins, by their very nature, do not change their value and do not compete with ETH or ADA.
Ethereum and Cardano are currently blockchains providing utility services at the top of the food chain.
However, Ethereum currently has a decent lead over Cardano with more than five times its market cap – around $ 30 billion versus $ 55 billion.
Cardano Smart Contract Deployment Plan
If you’ve been waiting for the download of the Cardano ADA coin for a long time, then that time is probably close.
However, each step in the smart contract phase-out process will take anywhere from a few weeks to a month or so. This means you have time to build your ADA before the hype hits this season.
But keep in mind that, given the current state of the market, there will be price fluctuations on the way to the public release of the Alonzo testnet.
One of Cardano’s biggest problems today is the lack of smart contracts.
Obviously, their methodological and research process has just borne fruit.
The blockchain feature, which has been in development since the launch of Cardano in 2017, finally appears to be completed in a few months.
And, as with Ethereum, Cardano prudently divided its blockchain into two layers – the accounting layer and the computation layer. The accounting layer manages the movement of value across the network, while the rest deal with decentralized applications.
One of the reasons the Ethereum network is so bogged down right now is because it tries to use one layer to govern everything on the network.
Ethereum’s “Layer 2 Scaling Solutions” that you may have heard of are strategic attempts by third-party blockchains to process off-chain transactions on a separate network from Ethereum.
But now that there is a fairly specific timeline, we expect the Cardano news to snowball as the public launch date approaches.
Smart contract functionality is just the icing on the cake
Apart from Ethereum, there are other blockchains that offer developers the ability to create smart contracts. Cardano is not special in this regard.
Where Project Cardano has an edge over other smart contract-enabled blockchains besides Ethereum is in its research-backed development and growing list of real-world applications.
In addition to the benefits listed below, Cardano also plans to release a system to connect the Ethereum blockchain to its own. This would make the two chains compatible, which would allow tokens to be sent back and forth. Which, therefore, would ease any potential migration pain that could prevent someone from leaving Ethereum.
But more important than interconnection …
Research driven development: Cardano’s consensus algorithm, dubbed Ouroboros, was the first expert-proven secure algorithm. A long list of Cardano’s research papers can be found in their documentation and is understandably too long to be covered in one article. What else is impressive? IOHK, a company that “creates cryptocurrencies and blockchains for academia, businesses and government agencies,” is also responsible for developing Cardano. And at IOHK, there are 103 research articles available for crypto enthusiasts. Cardano and IOHK are serious. When they say they are supported by research, they mean it.
Real World Cardano Applications: Despite IOHK’s emphasis on research, Cardano has already found several practical uses. Some of them have already started to be implemented, and many others are planned for the future. And, of course, with the addition of smart contract capabilities, additional practical uses will become possible. In Africa, IOHK is working on the largest blockchain transaction ever. Specifically, in Ethiopia, a Cardano-based digital identity solution is being deployed to serve over five million students. There are also other projects in Africa that include donating to children, building networking infrastructure, supporting entrepreneurs and educating people in the latest technology. In addition to Ethiopia, there are also several universities and ministries of education that, in partnership with IOHK Cardano, are researching blockchain technology, using Cardano’s blockchain technology, or a combination of both. For example, the University of Edinburgh, the University of Wyoming, and the Georgia Department of Education.
Cardano was also used by New Balance to authenticate shoes. If that wasn’t enough, Cardano has a commercial subsidiary called EMURGO dedicated solely to promoting business ventures that are expanding the use and adoption of Cardano.
Conclusion on Cardano
After Cardano successfully updates its blockchain to enable smart contracts, scaling and governance will be the next issues in that order.
While both of these factors are critical to the decentralized global adoption of ADA, we believe smart contracts, in particular, will accelerate Cardano’s growth over the summer and beyond.
Cardano is well positioned to grow and we strongly support the project and its long-term mission.
But there are other cryptocurrencies that we love even more …
In the meantime, right now, our team of hardworking cryptocurrency experts are hard at work picking the best cryptocurrencies, altcoins and tokens to buy. Our team of technical and cryptographic experts analyzes all the news and information about the blockchain every day. We do this carefully to provide you with only the most up-to-date information like this about Cardano, but in relation to the technical landscape in general.
Rather than echoing what others say about different cryptocurrencies, we take a thoughtful, research-based approach to identifying innovative projects that will impact how we interact with technology. In this respect, we are very similar to Cardano.
Over the next few weeks and months, you will see how our cryptocurrencies appear in Investor in innovation, which currently showcases the most advanced technologies and companies that are changing the world.
For more information see Investor in innovation today, and come on a tour.
At the time of publication, Luc Lango did not have (either directly or indirectly) any position in any of the promotions mentioned in this article.
Having discovered the first investments in hyper-growing industries, Luc Lango puts you on the ground floor of megatrends that are changing the world. This is the topic of his first technology service, Investor in innovation… To view Luke’s entire line of cutting edge, innovative games, become an Innovation Investor subscriber today…