Cardano has had a very difficult time in the crypto market in the past few weeks. The price of the ADA token fell from its all-time high of over $ 3 to currently $ 1.22. The ADA token was hit particularly hard in this market correction compared to other coins. But many key figures show that the network is on the right track. What challenges does Cardano have to overcome in order to get started again in 2022? Let’s look at the 3 major challenges that will contribute to Cardano 2022 comeback.
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#1 Enhance the 3 pillars of Smart-Contracts
The 3 big pillars of smart contracts and the corresponding platforms are decentralization, scalability and security. Cardano is very well positioned in all 3 areas. However, platforms like Solana and Avalanche have made extreme strides in the area of scalability and offer extremely fast transactions.
Thanks to the proof-of-stake consensus mechanism, Cardano was able to set itself apart from the market leader Ethereum, which is only going to switch from proof-of-work to proof-of-stake. However, developers need to keep working to ensure efficient yet secure transactions to keep up with networks like Solana and Avalanche.
#2 Optimize Scalability
After the first reason, Cardano must not forget to offer optimal scalability for decentralized applications. Again and again there is criticism that the Cardano Foundation is too academic in its work on the blockchain and has recently been left behind in terms of competitiveness.
Especially in the area of scalability, the network must not lose touch. Even if the blockchain were to have the best technical level overall, competitors could overtake the network on the market with significantly higher scalability in terms of smart contracts. However, improving scalability is already the next step in the development of the Cardano Foundation.
#3 Establish Governance Functions
Establishing governance functions is also a development step that Cardano is working on intensively. According to Cardano boss Charles Hoskinson, the platform is working on the formation of a governance that will guarantee the participation of hundreds of companies.
With the governance model, token holders should have the opportunity to determine future developments of the platforms on a democratic basis. The tools used are the ‘Cardano Improvement Proposals’, which the token holders can vote on.
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