Cardano investment – Investing in the Third Generation Blockchain

3rd June 2018

Last year on September 29, 2017, a new distributed ledger system was launched called Cardano and its native token ADA. Many cryptocurrency investors have added ADA to their portfolio because Cardano is a project with a rather promising roadmap. The Cardano project aims to outshine competitor cryptocurrencies like Ethereum, and Bitcoin by providing a smart contract development platform, representative tokens, and the basic Cardano Settlement Layer (CSL).

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Cardano: The Third Generation Distributed Ledger Network

There’s a cryptocurrency that has digital asset enthusiasts and investors curious as the new distributed ledger platform offers an array of benefits. Cardano (ADA) is the seventh largest cryptocurrency market capitalization out all 1600+ digital assets available, and for many reasons. Investors are interested in Cardano because of its development team ‘Input-Output Hong Kong’ (IOHK) — which is led by the co-founder of Ethereum (ETH), Bitshares (BTS), and Ethereum Classic (ETC), Charles Hoskinson. The well-respected developer and cryptographer Hoskinson believes the third generation blockchain Cardano will outshine both Bitcoin and Ethereum in about one year.

“Why is anybody worthy of their positions in the market cap?” Hoskinson asks while being interviewed just recently.

Bitcoin is advertised as a payment system and a means of exchange, and then everybody who has ever tried to use it for that, it’s been a miserable failure — They usually stop taking it, or they find ways to take cash, and through a creative structure like what Bitpay has done — Ethereum claims to be a world computer, but then Cryptokitties breaks it.

Cardano’s Consensus Rules Reward Stakeholders

Another benefit of those who are invested in ADA, is the decentralized currency’s consensus algorithm Proof-of-Stake (PoS) — a cryptocurrency mechanism that rewards those who have a stake in the coin on a regular basis. Newly minted ADA are created with PoS and its fuels the ‘governance-like’ decision making done through Cardano’s algorithm called Ouroboros. ADA’s consensus is based on a coin-holder vote and slot leaders generate new blocks across the Cardano chain. The Cardano process not only incentivizes the ADA holders, but also can “bring stakeholders closer to the operations and maintenance of their cryptocurrency,” explains the IOHK white paper.

“‘Ouroboros’, is the first blockchain protocol based on proof of stake with rigorous security guarantees,” IOHK further emphasizes.

We establish security properties for the protocol comparable to those achieved by the bitcoin blockchain protocol — As the protocol provides a “Proof-of-Stake” blockchain discipline, it offers qualitative efficiency advantages over blockchains based on proof of physical resources. We also present a novel reward mechanism for incentivizing Proof-of-Stake protocols and we prove that, given this mechanism, honest behavior is an approximate Nash equilibrium, thus neutralizing attacks such as selfish mining.

Cardano’s Market Performance Over Eight Months Remains Strong

Cardano ADA’s market performance has been exponential since it launched on publicly available cryptocurrency exchanges. As we mentioned above ADA is the seventh largest digital asset valuation and the market capitalization is well over $6.4Bn at the time of publication. Today the currency also holds the 17th highest trade volume out of all the cryptocurrencies in existence. Furthermore, the asset trades roughly $50-90Mn USD worth of ADA trades on a 24-hour basis which outshines quite a few other cryptocurrencies. At the moment the nation-state issued fiat currency the South Korean won is the largest currency paired with ADA today. The won captures 45 percent of all ADA trades while the rest of the Cardano exchanges are paired with BTC, ETH, and the USD.

Investors believe Cardano investment is a great choice for your portfolio because the currency is very inexpensive at the moment at Ƀ 0.00002991 or $0.24 cents per ADA. This means the nascent ADA market and development has a long road ahead, as its still very early but could be a lucrative portfolio choice like Ethereum was back in 2014.

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