Cryptocurrencies, as we know it, is highly unlikely to always be in the state it’s currently at because the nascent crypto and blockchain industries are evolving and are continuously improving and getting better.
There are those in the cryptocurrency community who have strong faith in Cardano (ADA) will take the forefront in the next generation of cryptocurrencies.
Cardano currently ranks as the tenth largest cryptocurrency by marketcap, according to CoinMarketCap, with a value of approximately $2.02 billion.
The founder of Cardano, Charles Hoskinson, was also one of the founders of Ethereum; so fundamentally Cardano as a project was built on the knowledge that Ethereum was developed on. This is an advantage for Cardano, as it already has the real-life foundation and experience of a crypto project- something that the competitors of Cardano did not have.
So why is there so much expectation placed on the project by certain members of the community? The main focus of Cardano is smart contracts, a concept that was developed through Ethereum. Charles Hoskinson- knowing the issues that are associated with smart contracts and Ethereum has the opportunity to address these problems when developing Cardano.
Some of the issues Ethereum is facing includes: scalability, sustainability, and interoperability. Another significant issue is communication between the Ethereum network and outside forms of financial actors such as banks of virtual networks. Also, due to the private-nature of cryptocurrency funding, it was difficult for individuals to explain to banks where the funds were coming from.
Charles Hoskinson’s experience would play a significant role in making sure that Cardano technology remains innovative and potentially tackles all the issues going forward.
Cardano would institute its layer architecture structure- allowing for significant improvement in the safety and security of smart contracts. As it’s divided into layers, the security is increased as the processing done by each following layer is achieved independently from the previous layer. This allows the information to be handled safely and not shared.
So, this next wave of cryptocurrencies-dubbed cryptocurrencies 2.0-will address the issues faced by the class of cryptocurrencies before them. This doesn’t mean that they will be built a flawless platform, but instead, it suffices to say that they will solve the challenges facing them now.
This will encourage for the appearance of fresh new challenges and problems, and that will promote the further evolution of cryptocurrencies. Similar to how the next generations of mobile phones are continually being improved upon, cryptocurrencies are the same in this regard, in that they need to be sold to customers, so they have to be improved and continuously enhanced. Otherwise, just like the iPod was replaced by the iPhones, the same event will happen to cryptocurrencies. In this regard we would see Cardano being the leader in the next evolvement in cryptocurrencies, potentially rising to the highs of Ethereum and maybe even Bitcoin.
This article was originally published on Blockspectator.
