Bitcoin and Ethereum, the two major cryptocurrencies, have two big problems: they are either slow or difficult to scale. In order to solve these, third-generation cryptocurrencies were created. The Cardano developers claim that their solution belongs to the third generation. Who invented this cryptocurrency and should you invest in Cardano?
Cardano is a creation of the Input Output Hong Kong company and Charles Hoskinson. He is actually an ideological inspirer of the Cardano project and a mathematician by profession. In this regard, many of his ideas are references to various mathematical terms or mathematicians of the past.
For example, Cardano is named after the 16th-century Italian algebraist Geralomo Cardano (who you probably haven’t heard of). The native coin of the Cardano platform – ADA – is named after the first female programmer Ada Lovelace. By the way, the smallest fraction of the coin also refers to her. It is called Lovelace (like her last name) and is equal to 0.000001 ADA. So you can invest in ADA as little as buying one lovelace :)
A distinctive feature of Cardano is the two-tier platform. On the contrary, Bitcoin and Ethereum are single-level systems. But why do we need any levels in cryptocurrency at all?
To put it in simple words, the first level is for calculations. It's called the Cardano Settlement Layer, or CSL for short. The second is needed to maintain smart contracts. Its name is Cardano Computation Layer, or CCL for short. Such tiering not only allows to speed up work by reducing the information transmitted during transactions, but also makes Cardano quite mobile.
Although ADA appeared a long time ago, they started talking about it relatively recently. This was due to the rapid growth of the coin in the first half of 2021. Imagine that back in March 2020 ADA was worth a little more than a cent, which would have been a good time for a Cardano investment, because by August 2021 its price exceeded three dollars. In other words, in a year and a half, the coin soared 300 times! Should you invest in Cardano now?
If you consider investing in Cardano, take a look at advantages and disadvantages of the project.
The main advantages are a strong brand and high speed of transactions. So, no matter how you feel about the marketing, Cardano is doing well here: a bunch of references to philosophy, mathematics, various scientists, and so on. Investors have an image of a serious project, unlike, for example, some meme coins, such as Dogecoin or Shiba Inu.
Moreover, the transaction speed is quite high: faster than in Bitcoin and Ethereum. It reaches 10,000 operations per second.
The main disadvantage of Cardano is that it is still an unfinished project. So, the prospects are ambiguous. The platform is constantly evolving and releasing updates. However, the work is carried out quite slowly and sometimes leads to unexpected consequences. For example, in the fall of 2021 a new platform update was released — Alonzo. However, investors reacted quite negatively to it and the price of the ADA token dropped 3 times since then, which is an attractive level to invest in Cardano today.
Due to the fact that Cardano takes the 6th place in terms of market capitalization, many people consider it as an alternative to some stable coins and buy it because the project is very promising. It’s true that it’s been in a downtrend for a while, but it’s the best way to invest in Cardano if and when it does grow!
The last interesting fact is that you can’t mine ADA. Where can I invest in Cardano? – you might ask. The answer is that you can only buy it, fortunately, on all exchanges. And you can increase the amount by staking.