All that rhetoric that blockchain establishes in the form of trust, transparency, and security goes for a flip. This happens when you cannot use a technology to power up ambitious sectors like finance due to scalability challenges. Having said that, what happens when blockchain projects encounter conflicts within their own community, an unavoidable hard fork, and a long period of contention among investors to choose the right coin post the hard fork.
What would you say to an idea where true decentralization can be inducted to power up the project? Preferably, one would say that it might be next to impossible to get the community to vote on everything and then develop, instead of vice-versa. However, there’s one project which is preferably doing that and it could be the next big thing in the crypto space. In case, you are wondering which blockchain we are talking about, it is Cardano!
What is Cardano Blockchain?
Despite some of the cryptocurrencies witnessing an unprecedented rise, they weren’t immune to conflicts of interest, hacks, and scandals. As a result, hard forks ended up as a trending term in the last few years. However, Cardano introduced the concept of true decentralization through its scientific philosophy and research-driven approach.
The crux of the project is that even the developers and project founders do not have complete control over the project. Rather, the community drives everything through a free, open-source voting process that makes the entire project trusted, verified and scalability is driven through its consensus mechanism.
How Cardano introduces scalability despite 100% decentralization?
Basically, most of the renowned blockchains that the community trusts work on PoW or Proof-of-Work mechanism. Without a doubt, proof of work is a masterpiece consensus when you want very high security; nonetheless, one cannot use it for driving enterprise-level adoption. In order to do that, the blockchain must be fast but secure at the same time.
Cardano’s Ouroboros algorithm, which is much like the heart of the Cardano ecosystem, uses PoS or Proof-of-Stake consensus mechanism that considerably saves on energy consumption and facilitates faster transactions. On top of this, the Recursive Internet Worked Architecture( RINA) allows scaling the ecosystem to meet enterprise-level adoption. For example, African countries are thinking of adopting Cardano as a payment network in their country.
How does RINA help in scaling the Cardano Ecosystem?
Basically, most blockchains start to choke out when enterprises adopt their ecosystem. The prime reason for the same is an overflow of data to their ecosystem. As a result, network bandwidth becomes an unavoidable holy grail that hasn’t been solved yet. Since all existing networks work on TCP/IP model, commanding scalability to happen while using a restrictive blockchain layer would mean asking a fish to climb a tree.
That said, Cardano introduces RINA or Recursive Internet Worked Architecture which breaks the network layer into two: (1) Data transfer layer (2) Data management layer. However, in case you are wondering how communication would happen between both layers to validate the entries, a default network security layer acts as a subset for both layers.
Why is Cardano a Must BUY for the future?
The recent explosion in the DeFi market has established the fact that as time passes, we could see more use-cases building on top of DeFi. Earlier we did see the DeFi 1.0 storm, now we are seeing the DeFi 2.0 storm where protocols have turned smarter and they control much of their liquidity on their own. In the near future, more use cases would emerge and the much anticipated Hydra upgrade would allow quickening of transactions on the ADA-USD chain at a fraction of a cost.
As a result, preferably the DeFi ecosystem might look forward to moving to the Cardano ecosystem instead of Solana due to the latter’s network outage track record. At the same time, investors need not have to worry about hard forks and their initial tokens losing value since the peered review is going to turn mainstream on the Cardano network. All of these would make Cardano a preferred buy option for the upcoming future ahead.
Why is the present Cardano price a good entry point?
Though most of the cryptocurrencies witnessed an inevitable bloodbath in the market recently, Cardano, often considered an underdog project, performed outrageously. The token is up 30% invalidating a bull trap ahead. Much of the price gains have been attributable to this third phase rollout and Basho update. As per the Dutch cryptocurrency trader Michaël van de Poppe, ADA is on the path to reversal after invalidating a further downside to $1 below the lower trend line.
Thus setting the tone that no further divergence would occur within the $1.05 and $1.20 zone and we could very well see momentum building up ahead. $1.30 could be a good entry point and $1.41 could be the point where we see massive trades as per the Fib retracement analysis.
How to Buy Cardano on Binance?
Step 1
Click on the link to initiate the process. Once you do, it will take you to the “buy Cardano” section with a credit card page as shown below.
Step 2
Click on the login as shown on the top right. We are assuming that you have a Binance account. In case you do not, you can check our other blog where we have a guided tutorial to help you set up your Binance account.
Step 3
Input the code received and once you do, it will take you to buy with a credit card.
Step 4
Input the amount of ADA you wish to buy. We’ll take an example of 1,000 USD and click on the continue button.
Step 5
Click on the add card option. Fill in the specimens and click on continue. Once you do, it will ask for validating the transaction within 11 seconds.
Step 6
Upon doing that, you can check the ADA newly purchased on your spot wallet. Always use a reliable cold wallet to store all your cryptos.
