Cardano has been making waves in the crypto universe for a while now because of how the general public's opinion seems to have been deeply polarized.
So, while many believe that Cardano is destined for greatness, others seem to have lost faith in the project entirely.
First things first: Cardano's goals made simple:
Cardano is a very exciting project which aims to tackle the three main problems cryptocurrencies are facing since their creation:
So, let’s go through each one of these and hopefully give you some insight on why people are so excited about Cardano going foward into 2022.
If you have Bitcoin, you’re probably familiar with this problem. The number of transactions which can be confirmed matters and that means that the block size debate led to many crypto theorists thinking up of new ways to address this issue and how can a network actually speed up as more users join it.
So, by having many users using the network and the need to keep the network’s speed consistent, a blockchain’s capability should scale linearly with its usage.
Cardano cleverly addresses this issue by using a system called Ouroboros, which when putting it into very simple terms, translates to having something called “epochs” which divide those who will validate certain blocks in its blockchain into slots, and assigns these nodes with the role of slot leader. As slots can be divided up further, it allows the network to scale.
The way Cardano addresses the interoperability issue is simple. Cardano set up something called the KMZ sidechains protocol.
This clever mechanism allows for people to bridge Cardano and other cryptos which use other blockchains, meaning that Cardano is fully aware that it won’t ever the only crypto in town and it’s far easier to proactively set up a way of interacting with others via bridge than sit on its hands.
This way of forward thinking makes us believe that there is a bright future ahead for this coin.
Sustainability in crypto can mean both environmental sustainability and the project’s ability to sustain itself financially. Cardano addresses both of these issues flawlessly.
First off, in what concerns the environment, there is an ongoing demand for sustainable products and services and there is no reason for that to be any different in the crypto ecosystem.
Many claim that Cardano’s proof of stake mechanism is environmentally sustainable, whereas other mechanisms, like proof of work for example, are not.
Regardless, if any crypto wants to establish itself and be a part of people’s financial lives on a daily basis, sustainability must be high on the project’s priority list.
And secondly, as for the project’s financial sustainability, Cardano is a self-sustainable cryptocurrency. It achieved this status by establishing a treasury which collects fees and, in turn, injects them back into the system by means of payments to whoever can contribute positively to the network, meaning that it is fueling the projects of whoever has a provable intention and deliverable project which aims at improving the network.
Wrapping up: there might be a bear case to be made
Cardano's strenght might also be its weakness: Education created Cardano, and only education will be able maintain it. Hopefully, it doesn't deviate from that premisse.
Its 2022 key plans were recently released and Charles Hoskinson provided nothing but a set of general objectives and no roadmap with intermediate steps, in stark contrast with his 2020 vision for the project.
Regardless, Cardano seems to be an incredibly sound coin, but what keeps impressing us most is the how it always approaches problems from a very rational and logical standpoint.
The community's methodical reasoning and amazing problem solving shows the project’s true colors and ambition to tackle big challenges in the future.