What is Cardano?
Cardano is a Blockchain platform, which aims at running smart contracts. The Cardano-Foundation is working with academics and scientists in order to build a strong network, that makes sure, that the further development of the cardano protokoll goes in the right direction.
The Cardano platform serves as the basis of the underlying Cryptocurrency ADA.
There are three companies and institutions pulling the strings behind Cardano:
- The Cardano Foundation
The Cardano Foundation (registered 2016 in Switzerland) has its focus on the regulatory standards and the external representation of Cryptocurrencies
Emurgo is the investment oriented part of Cardano. On the one hand, they are directly
investing in Start-up-companies, on the other hand, they are searching for business partners,
which aim to revolutionize their sector with Blockchan-technology.
The IOHK (Input Output Hong Kong)
The first name, the most people associate with IOHK, might be former Ethereum developer
Charles Hoskinson. The IOHK is a technology company, focusing on (surprise surprise) the
technical implementation of the project.
Three pillars of success
Cardanos strategy to become the worlds leading blockchain platform is based on three pillars of success:
In order to gain mass adoption of ADA, Cardano is working on a more efficient way to gain more transactions per second.
Therefor, Cardano is working on a saver Proof-of-stake-protocol, Ouroboros, which aims to implement a quantum-safe-encryption.
The goal is to minimalize the costs of the implementation of a new block.
One of the biggest problems in the crypto-space is, that cryptocurrencies are not interacting
with each other and that it is very difficult to build a bridge from the cryptosphere to the
industry (or “the real world”).
Because of this essential problem, Cardano is working on a platform, which wants to let
different protocols, cryprocurrencies and institutions interact with each other.
In order to control the direction of the development, the foundation wants to implement a
democratic decision-making-process of all stakeholders. This process is going to be financed
by a treasury bond (similar to DASH)
Should I invest in Cardano?
If you look at the price-chart of Cardano, you can see, that it corrected from about 1,3 USD in July 2017 to 0,032 USD today.
That means, that the price of ADA corrected 97,54% from its all-time-high.
If we assume, that Cardano at least goes back to its highs of 2019 (0,1$), you would approx. triple your investment, if you decide to buy now.
On the one hand, there is enormous upside potential, on the other hand, there are many problems, Cardano needs to solve and there is still a long way towards mass-adaption.
I’m personally a risk-loving investor, so I got a small amount of ADA, but I won’t recommend investing a big part of your savings in risky assets like this.
This is not financial advice!
Always do your own research!