Cardano (ADA) is one of the third-generation proof-of-stake (PoS) blockchain platforms designed to address fundamental flaws such as poor scalability, interoperability, and sustainability in proof of work (PoW) networks. The native cryptocurrency is ADA.
The proof-of-stake (PoS) consensus protocol means that the Cardano decentralized network uses stakes or ADA coins to keep the network secure. Your coins in the stake pool form new blocks if the lottery system selects your node, and you get a reward for every new block created.
The PoS consensus mechanism increases the network’s scalability and interoperability because it takes a shorter time to create new blocks, unlike proof-of-work (PoW) verification protocols. PoW requires spending a lot of time solving complex mathematic problems to create new blocks. That’s basically what increases throughput in the PoS protocol mechanism.
As an investor, there are many reasons why you should invest in Cardano. Apart from improved scalability, interoperability, and other PoW flaws, many other features are attracting investors. That’s what we have for you in this article.
We have put together major reasons why you should invest in Cardano, and they include:
Market Acceptance
The biggest challenge for blockchain networks is gaining market trust. As we have seen with many promising networks, the lack of market acceptance has diminished their crypto coin value. For the Cardano blockchain network, there are many organizations ready to adopt it. However, most of the deals have been in the African market.
Ethiopia, a country of more than 114 million people, has promised to use the Cardano blockchain in schools to track student performance. Input Output Hong Kong (IOHK) has also struck deals with organizations SingularityNET, iceaddis, and World Mobile to decentralize Africa using Cardano blockchain technology. Such deals have boosted investor’s trust.
It is important to mention that Africa has more than 1.34 billion people, with almost 60% being below 25 years as per 2020 data. This makes the continent one of the largest technology hotspots in the world.
Cardano Smart Contracts
Cardano is one of the third-generation blockchain technologies to run smart contracts. The company launched its Alonso smart contractor at the end of May 2021. The rollout is taking three phases in 90 days. The launch provides Cardano the push it needed to become of the most sought-after blockchain networks today.
Immediately the IOHK launched the Alonzo smart contract platform, the value of the ADA token increased by a huge percentage. This is because of the high popularity that the crypto got in the market. Experts believe that when Alonzo smart contract rollout is complete, Cardano might have reached its previous peak.
So many dynamics that will come into play once the Alonzo smart contract platform is fully rolled out. Apart from the rise in the ADA cryptocurrency value, Cardano will be one of the dominant third-generation blockchain networks. So market acceptance is another factor attracting investors to buy Cardano for long-term gains.
Still a Young Cryptocurrency in the Game
Cardano is one of the recent cryptos in the market. It was launched in 2015, and the token was released in 2017. If the coin’s value growth will follow the same steps as other big cryptos such as Bitcoin and Ethereum, which is likely to be the case, then today is the right time to invest in Cardano.
As of writing, the Cardano price was $1.27, and the all-time highest price was $2.3329. It’s expected that the price will get $5, $10, and probably to hundreds and thousands of dollars like Bitcoin. Therefore, there is a huge potential once the Cardano blockchain is fully functional, and that’s why investors are going for it for long-term gains.
As mentioned above, the team behind this blockchain network is making big moves into the market to attract network users. Therefore, the market is already for this network, and this will give the crypto a big boost in value once it is fully operational.
5.39% APY Rewards with AzureADA Staking
The Cardano PoS consensus mechanism allows staking, enabling ADA to hold to earn money from staking rewards. As of writing, more than 70% of the ADA tokens had been staked. This is more than Polkadot, which is one of the competing third-generation blockchain networks.
Staking ADA has grown popular mainly because of the attractive rewards investors are raking in. The recent data put ADA staking rewards at 5.39% APY, which is a very attractive passive income. The good news is that you can stake your tokens in a private or public stake pool. If you don’t have time to stake your coins, you can delegate to a public stake pool. Rewards are received every 5 days.
The staking process is straightforward. It is a competitive and fair market, where ADA staking rewards depend upon the volume of coins you stake. With a good stake pool operator and a large number of coins, you can expect to make a decent income. Therefore, ADA staking reward is one of the major reasons why investors are going Cardano.
Experienced and Reliable Pool Operators
The term leader behind the Cardano blockchain network has an impressive experience and reputation in blockchain networks. Charles Hoskinson, who is the founder and the lead in this project, is the co-founder of Ethereum. We all know that ETH is the second most expensive crypto today.
Hoskinson reputation puts a lot of trust in investors that the team will deliver the promised product. Already, experts are terming Cardano as the best alternative to Ethereum. The bottom line is that the team behind this project has the experience and reputation for delivering the promised product.
So far, the team has been able to deliver as per the roadmap, which is building confidence in investors to buy more ADA coins. That’s why ADA is ranked as the number 5 largest cryptocurrency in the world as of writing.
Final Verdict
Cardano is among the leading third-generation, decentralized Proof of Stake (PoS) blockchain platforms. It is one of the highly potent blockchain networks for the future. The team is working to deliver one of the highly scalable and sustainable decentralized platforms, which is quickly taking shape with the rollout of Alonso smart contracts. Therefore, investing in Cardano crypto is the best decision you can make today!
