Most of the attention in the crypto sector is often on the top coins that rank high in the CoinMarketCap. Investors pay little attention to lower ranking coins. This presents a major hurdle to upcoming coins. But, there are some coins that have lots of hidden potentials.
This is the case with Cardano (ADA), which ranks at number 7 on the CoinMarketCap. But investors are still exhibiting doubt over its potential. But, its nature makes it ideal and worthy of attention. Many speculate that it can rival Ethereum (ETH) and Ripple (XRP).
Cardano (ADA): The Third Generation Cryptocurrency
Why is Cardano so unique? Its power lies in its unique identity as a third generation of blockchain.
This might not sound fancy. But this coin had the opportunity to examine its predecessors. It explored their shortcomings and patched them. For instance, the scalability, security, among other aspects.
There’s a great potential exhibited by Cardano although it’s yet to be fully developed. It remains an open-source blockchain. It also allows the creation of smart contracts and DApps.
It made its first appearance as a concept in 2014. The coin started trading on October 1 after launching in 2017 September. The idea behind it was to maintain a perfect balance between crypto users and the regulators. This idea has been successful so far.
Cardano vs Ripple
One of Cardano’s prime target is Ripple (XRP). Ripple intends to create safer, cheaper, and practical payment solutions. There’s no doubt that it’s in league with various financial institutions and banks. This is easing the burden for the coin.
One of the reasons that these banks are accepting the coin is because of Ripple Lab’s reputation. Moreover, XRP is centralized and has lots of products that banks would want to use. It also has another advantage, it’s very fast, making it ideal for both cross-border and local use.
Considering scalability, this is one reason why Cardano might beat Ripple. The coin has 20-second periods in implementation. It also has a proven ability to process 257 transactions per second. All this gives it an upper hand.
This does not imply that Ripple is bad at scalability. The point is that Cardano’s layer-based architecture makes it a serious competitor. Ripple also has the potential plan to venture into smart contracts. This might qualify it to compete aggressively with Cardano.
Cardano has exhibited brilliant moves that you ought to watch out for. It has an outstanding real-life-use purpose. That’s why you should invest by learning the purpose and not just seeing the hysteria in the crypto market.
Charles Hoskinson, CEO of IOHK and co-founder of Cardano, stated his vision for crypto. He said: “I would love to see Cardano as the first trillion dollar cryptocurrency. Reason being that it would mean that we have built a self-sustaining economy.” With these few indicators, it’s much better to invest in Cardano.