Cardano: Strengths And Weaknesses

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A cryptocurrency project is supposed to proffer solutions to a problem. The emergence of blockchain technology and its use cases are essential to how we progress in the cryptocurrency space. 

What Does Cardano Do?

Cardano is an innovative contract blockchain platform based on Proof-of-Stake (PoS) that aims to challenge Ethereum’s dominance in the crypto space. It results from a scientific approach to addressing the most pressing issues in early blockchain projects. However, Cardano spent more than four years in development as it sought to address latency, throughput, security, and decentralisation issues that plagued other blockchains.

Those who stake their ADA in the Cardano network, effectively locking up their assets, receive a claim on future inflated ADA in relation to the amount they deposit. One of the few things that make Cardano a unique project is that it’s the first project established on “peer-to-peer review and developed through an evidence-based method”. 

It was also one of the first projects to dedicate to the Proof-of-Stake consensus protocol and the promises of several advanced architectural solutions, such as a multi-layered network, hierarchical deterministic (HD) wallet, and community-governed treasury.

On the other hand, Cardano’s lengthy research phase is both a strength and a weakness. Here are some of the features that break and make cardano. 

Read: What Is Cryptocurrency Cardano (ADA), And How Does It Work?

Strength

Technological advancement

Due to its speed and rapid technological advancements, Cardano will eventually be able to process up to a million transactions per second. Thus, Cardano is not only the eighth-largest cryptocurrency overall but also one of the most technologically advanced blockchains out there.

Cardano 1.5.0 Mainnet was released in March 2019, enabling support for Ourobouros, which employs Byzantine Fault Tolerant-Proof-of-Stake (BFT-PoS).

Outstanding Development Team

Cardano was founded by Charles Hoskinson and Jeremy Wood, co-founders of Ethereum, and quickly gained popularity after its official release in 2017. Their resilience and commitment towards creating a one-of-a-kind solution that solves the problems encountered make the team phenomena.

Academic Backing

It has been reported that Cardano is among the few coins rated highly by academics.

Additionally, many scholars work for IOHK and publish papers on how Cardano should improve in the future.

A handy feature for those who want to learn more about Cardano is that it gives Cardano credibility that most coins lack.

Open Source Platform

A key feature of Cardano is its open-source nature and use of the Haskell programming language. It is important to note that Haskell is a functional language that consists of functions and blocks that perform tasks as needed.

Read also: 5 Things to Consider Before Buying Cardano (ADA)

Weaknesses

Cardano Still Developing

In spite of the fact that Cardano is considered an “academic blockchain” that has undergone extensive testing, the reality is that it is still in its infancy and is lagging behind the competition.

Keeping up with competitors and technological advances requires Cardano to take its time developing.

Large Scope

The Cardano cryptocurrency aims to be an all-in-one cryptocurrency: an inexpensive, secure crypto platform and an exchange for atomic swaps. The management team must prove that they can accomplish all of these goals. If all goes according to plan, Cardano has the potential to be incredible, but every additional feature makes it challenging.

Having Multiple Chain

The concept of multiple chains cooperating was revolutionary when Cardano first appeared on the crypto scene. There had never been any consideration of this before. Nevertheless, people catch up over time.

Conclusion

Despite its immense potential, Cardano faces several challenges. In addition to its desire to serve many functions, it will face many obstacles to achieving its lofty goals. Because of the founder and executive team of the project, I have faith in it. Still, I’d like to know how they plan to address the issues they’ve identified in other cryptos, specifically governance and preventing user fragmentation, its POS algorithm, integrating smart contracts, and interacting with regulatory/legacy bodies while maintaining user appeal. The long-awaited Vasil upgrade from Cardano was completed late last month, which should boost the Cardano (ADA) ecosystem.  

The optimism in the Cardano community is that it will one day be able to compete for the top 5 spots anytime soon.