Cardano isn’t as famous as Ethereum or Bitcoin, but it accomplished a significant price jump in the cryptocurrency space in 2021. Cardano (ADA)has turned into one of the rapidly growing blockchains in the entire crypto industry, increasing ten times its price than last January 1, 2021, and dominates the crypto market, sitting in the top 10.
ADA’s technology is moving forward at lightning speed and seems to take on Ethereum to create an epic blockchain ecosystem.
There’s a massive potential in Cardano that many crypto investors claim to be an “Ethereum-killer.” Although Bitcoin (BTC) is still up by 32% last on January 1, the recent crash in the cryptocurrency market has rubbed out their latter-day gains. Moreover, the electrifying surge of Ethereum (ETH) was also dampened by around 35%. On the other hand, despite the escalated market volatility, Cardano has kept its upswing progress.
What is ADA?
Like other cryptocurrencies out there, Cardano (ADA) is a digital coin that people can use to store value or receive and send funds. ADA embodies the future of money, guaranteeing direct transfers, with minimal fees, to be secured through cryptography.
For example, you ride in an Uber car and pay using your Uber card. Your money will go to many institutions before the Uber driver gets their money. Because there is a middleman between you and the driver, the money will undergo many processes before getting to the other side. On the other hand, Cardano has smart contracts, so when the money is paid, there will be no need for a lot of processes that take interest before it gets to the driver.
It is no surprise that Cardano has its own kind of decentralized network, like Ethereum, that is completely based on mathematical and scientific principles as it was conceptualized by one of the co-founders of Ethereum (ETH), Charles Hoskinson. Being the third-generation blockchain network, ADA has grasped the shortfall of the previous networks, so it was able to design a more effective, energy-efficient, and economic system.
Cardano’s blockchain is made up of two primary components. One is the Cardano Settlement Layer (CSL) which acts as a unit where the token can receive and send ADA in an instant with only minimal fees.
The other is the Cardano Computational Layer (CCL), a set of protocols that serves as the backbone of the entire blockchain. It helps in running smart contracts, ensuring compliance and security, and permits other advanced functions like identity recognition and blacklisting.
The open-source code of Cardano is written through a universally recognized secured programming language, Haskell.
Why Cardano Will Kill Ethereum?
Building software is like building a skyscraper— once you build up the skyscraper’s foundation, it will be so difficult to change things the way you want them to be.
If you want to change a sink from the 6th floor of the building, you must dig a hole down at the ground floor to change the plumbing. And that’s what happens in software too. When a code is already stacked up, it will be really difficult to change aspects that need improvement, which is the problem with Ethereum.
Right now, you cannot do a good transaction on the Ethereum network. For example, you want to swap hundred dollars in Tether for Zee. The transaction fee could cost you a lot which is not really a wise move.
Ethereum could fix this. However, try looking at it this way. A software or a skyscraper is much easier to build from scratch as you have everything plan for scale. But the issue with Ethereum is nearly a hopeless case. Ethereum was not created with a long-term vision in mind and was just built to accomplish smart contracts to prove that the concept worked.
Now, let’s talk about Binance Coin.
Binance is a good platform; it is centralized and can be used greatly for trading and everything that it’s used for. However, there are low chances that it will be used for voting systems, governments, or to make contracts.
This is just speculation, but Ethereum’s $300+ billion market cap could probably go up to $500+ billion, and Binance Coin’s $89+ billion could increase up to $200+ billion. However, Cardano, which has a $41 billion market cap, could flip both of them combined. This is not going to happen overnight, but if Cardano pulls off what it’s promising to do, they could easily go up to $500+ billion.
Cardano’s have an ERC20 Converter which gives them the capacity to clone every project that you could find on Ethereum right now and put it over on Cardano. It might seem like it’s going to take a lot of effort to move people over from Cardano to Ethereum, but the overnight change between Pancakeswap and Binance Coin proves to us that it could happen in one swift way.
Cardano is completely optimized to rip and match Ethereum because of its long-term benefits. Just because Ethereum is on the top right now doesn’t mean it will remain in its glory forever. There is an increased demand for Binance Coins to use their swapping technology, which created a supply crunch. And the same supply crunch could happen to Cardano, and with millions of people around Ethiopia already using it, demand might be more massive than BNB.
Ethereum skyrocketed even when its current use is mostly just for trading and buying NFT’s. Just imagine how Cardano, which has a better software foundation and uses, could go?
If the government use case in Ethiopia got proven, then countries could use Cardano (ADA) for voting systems which Ethereum cannot do. In fact, Ethereum has large gas fees, and even if they lower it down to 80%, it will still be unusable and will not be as efficient as Cardano.
Key Takeaways
There’s a huge possibility that Cardano would up ten times its value right now, and kill Ethereum. According to bullish crypto analysts, Cardano (ADA) appears to be strong, having extensive room for growth in the coming years. And with its low price per coin, plenty of crypto investors view it as a notable long-term bet on an auspicious crypto project.
There’s probably no telling for now if ADA could go into the thousands as BTC and ETH did, but you can try betting on it.
