Inside any blockchain is a controversy. For Cardano, that controversy has been all about peer-review. IOHK, Cardano’s parent engineering company places massive emphasize on scientific research, rigorous academic protocols and peer review to innovate and validate technology. As a result, Cardano’s development process is not only rigorous but eats alot of time when subjecting any developments, progress and updates to peer review. This has cost both Cardano and its community the ability to become a fast-moving upwardly-mobile blockchain due to over-reliance on peer review. Which often limits innovation and agile development. However this has come with the advantage of expanded partnerships, less software issues and no costly mistakes in the long run.
Thereby becoming a viable process for Cardano to build long-term success and market traction. In this forecast, we look at Cardano, competitors and how the blockchain positions itself as a smart contracts 3rd generation blockchain.
Cardano Competitors
Cardano emerged in 2017 as one of the earliest ‘Ethereum-killers’ In 2020, came Solana and then Polkadot in that same year. All of these blockchains had one thing in common, they were here to solve Ethereum’s short-comings. In fact, Cardano and Polkadot were founded by top Ethereum ex-co founders Charles Hoskinson and Garvin Wood respectively.
Cardano Vs Solana
Solana has higher speeds than Cardano. The Solana network supports over 65,000 transactions per second, whereas Cardano supports 270. Cardano’s average transaction fee is also higher than Solana, at $0.25 while SOL charges $0.0015 on average. Good thing is Ethereum is no match for transaction speeds on both Solana and Cardano.
Cardano Vs Polkadot
Polkadot came around as a layer-zero blockchain as a solution for interoperability issues facing the blockchain. Cardano’s main advantages over Polkadot include limitless scalability and sustainability; while Polkadot beats Cardano when it comes to high transaction speeds, and lower transaction fees.
Cardano Vs Ethereum
Ethereum and Cardano are both smart contract blockchains where developers can build and deploy their own Decentralized Applications. Ethereum being an older blockchain, benefits from a larger ecosystem, community and a large community of developers. However, Ethereum lacks the scalability of Cardano. Transaction fees on Cardano are much lower than on Ethereum. In addition, to less transaction time when sending or receiving cash on Cardano.
Cardano’s Focus On Academic Research
Cardano has a strong emphasis on academic research and peer review.This particular focus on research, peer-influenced development speaks volumes about Cardano’s long-term plans and sustainability. Involving scholars and academic experts ensures the project undergoes heavy scrutiny and criticism, thereby enabling more reliability, credibility and security. Many ADA supporters believe this approach is good for the project and provides a solid foundation for long-term success. In fact, the process meticulously prevents vulnerabilities and enhances overall blockchain quality. However, there are those that have argued strong emphasis on research and peer review has slowed down Cardano’s development process. Often delays in upgrades and deployment of new features can place ADA at the disadvantage of fast-moving decentralized projects.
Nevertheless,
While the process may evoke imagery of scholarly symposia and ivory tower contemplation, the impact is unmistakable—a solid foundation of knowledge and thorough assessment that positions Cardano as a formidable contender in the digital asset realm. Just as reputable establishments stand the test of time, Cardano’s integration of academic research and peer review serves as a robust cornerstone for its future endeavors.
Cardano’s Governance Model
Cardano, a blockchain platform renowned for its commitment to sustainability, boasts a groundbreaking governance model that empowers its community like never before.
Decentralization In Action
At the core of Cardano’s governance lies its decentralized nature. Validators, those who hold ADA tokens, play a pivotal role in decision-making. This ensures a broader representation of interests and prevents undue concentration of power.
Voltaire: The Catalyst for Change
Cardano’s governance model is exemplified by its phase known as “Voltaire.” Named after the Enlightenment philosopher, Voltaire ushers in a new era of decentralized governance. It introduced Project Catalyst in June 2023, a platform where stakeholders propose, debate, and vote on projects, fostering a dynamic and inclusive decision-making process.
ADA Holders as Decision-Makers
ADA holders participate in fund allocation, deciding which projects receive financial backing. This ensures that projects align with the community’s vision and needs. It promotes a sense of ownership and responsibility among participants.
Treasury System: Fueling Innovation
Cardano’s treasury system ensures sustainable growth. A portion of transaction fees is directed towards funding future developments and initiatives. This economic model encourages innovation while ensuring the platform’s longevity.
Openness and Accountability
Transparency is a cornerstone. Decision-making, proposals, and voting outcomes are visible to all. This fosters accountability and builds trust within the community, vital for a robust governance structure.
Evolution and Adaptation
Cardano’s governance evolves with time. It welcomes research-driven enhancements, embracing technological advancements and fine-tuning its model for maximum effectiveness.
Cardano Recent On-Chain Evaluation
In recent months, Cardano has experienced notable surges in transactional activity. The increase in ADA transaction volume can be attributed to key factors such as product advancements and exchange re-listings, notably following the XRP victory against the SEC.
Illustrated in the Santiment chart below is the upward trajectory of ADA Transaction Volume, surging from 7.32 billion to 9.63 billion within the timeframe of July 1 to August 7.
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Cardano price on-chain analysis. Source: Santiment
Transaction Volume measures blockchain economic activity by tracking daily coin trading among users. Trading spikes often indicate positivity. Yet, despite ADA’s 32% volume increase, Cardano’s price struggle shows bears currently dominate market momentum. Why is this the case?
Additionally, on-chain data shows that Cardano whales with 10 million to 100 million coins have increased bearish influence this August. This reinforces the pessimistic ADA price view.
Notably, these whales held 12.27 billion ADA by late July, which dropped to 12.17 billion by August 7.
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Cardano price on-chain analysis. Source: Santiment
This signals a sale of 100 million coins in the initial week of August.
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