Cardano is a cryptocurrency that aims at being a better and newer smart contracts platform.
This sounds intriguing enough to you, right?
The global crypto markets certainly thought so, because ADA, which was launched at the start of October 2017, has soared to the top 10 by market capitalization.
That's insane volume, insanely fast. So you might feel like you're about to "miss the boat," It was like that. But there's a lot of factors in play around Cardano from an investment standpoint, so let's get into the nuts and bolts and let you make up your own mind.
Cardano 101
Cardano, the new blockchain technology from IOHK in collaboration with a Japanese group of businessmen is a brainchild of the group. Charles Hoskinson leads IOHK. He is a former Ethereum programmer and currently the community leader of Ethereum Classic.
Hoskinson, according to whom you speak with, brings Cardano a level of fame or ignominy, depending who is speaking.
The project was envisaged as a platform for smart contracts built on Gen 3 Blockchain (i.e. ETH is Gen 2. BTC is Generation 1. It is the mission to build this platform with regulatory compliance in mind.
Cardano, on the other hand, will be the very first blockchain that is coded using the Haskell language. Comparatively, Ethereum and Bitcoin are coded in Solidity. Haskell offers greater precision, as Hoskinson says.
It's important to keep in mind, as well, that Cardano is very much so still in development. Project Phase I has been named "Byron," which is the platform's first layer that launched back in early October.
The next phase has been named Phase 2. "Shelley," If there are no delays, the network should go live by mid-2018. Shelley is responsible for smart contract functionality on the Cardano Network.
What is the Ethereum killer here?
But not so fast. Cardano does look promising. But it's got several major factors to contend with that might make its battle with ETH an uphill battle, at least in the short- and mid-term.
Indeed, Ethereum's entrenched first-mover status as a smart contracts platform is going to be hard to beat.
Ethereum (also known as:
- Already very trusted
- Already offering Smart Contract Solutions
- The pace of improvement is impressive
Unless Cardano's smart contract capabilities end up blowing Ethereum's out of the water, it's likely ADA won't end up beating ETH any time soon.
Each day new projects appear that promise to kill Ethereum or Bitcoin. However, the two top cryptocurrencies are expected to dominate the crypto markets for a long time.
That could change one day, but it's something to at least weigh when considering an investment in ADA in the short-term.
Recent performance
Speaking of short-term, Cardano's had one helluva bold entrance into the crypto marketplace, skyrocketing into the top 10 cryptocurrencies by market cap in under two months.
Can't ignore that, can we?
The market is a good judge. People are excited about ADA's potential. There is a lot of excitement about ADA. "Ethereum killer" seems to get peoples' attention.
Is a price retracement near or will the current trend continue? Who knows what is next? No one can predict the future. This short-term thrill could be a sign of mid- to long-term results.
Does it make sense to invest in?
Here's our obligatory disclaimer: you are the sole author of your financial portfolio. We here at CoinBureau don't offer financial advice. Our only aim is to provide insights into cryptoeconomics.
With that said, it's virtually an objective fact that a cryptocurrency that's come out so recently will have higher price days ahead. Cardano is a good option for traders who are looking to invest in the medium and long term.
Price and volume for ADA may be a little choppy right now, as the project is so new. In the end, you'll have to make up your own mind. But Cardano's certainly one to keep an eye on, in the very least.