Find out Why ADA is Going to Explode in 2021
With more than 7000 cryptocurrencies available in the market, the blockchain world is flourishing and will continue to grow over the next few decades.
According to crypto enthusiasts, 2021 is the best year to invest in crypto assets, and one of the best cryptos to focus on is Cardano. Here are some reasons why Cardano is going to explode in 2021.
Looking At 2021: Is Cardano Price Set For A Massive Year?
Since 2017, Cardano has seen continuous growth and is among the top cryptos for investors in 2021. After a sustained price rally, it has successfully leapfrogged Ripple and is now the fourth-largest cryptocurrency in the world by market cap. Cardano is an open-source, decentralized blockchain project designed to facilitate peer-to-peer transactions. It is a platform that is both adaptive and scalable, along with ensuring high security.
Several reasons back up the prediction that Cardano is going to explode in 2021. Here are a few among them.
#1: Its Unstoppable Growth
Cardano (ADA) is a third-generation cryptocurrency and has seen significant growth since its inception. It was able to integrate the hallmark features of the first generation Crypto, Bitcoin, and the second generation, Ethereum. By leveraging novel technologies and with integrated research features, Cardano has indeed introduced innovation to the crypto market.
Cardano has been a strong player in the crypto space, and 2021 will indeed be another strong year for this cryptocurrency with its smart and intelligent features. Today Cardano is one of the top ten cryptocurrencies according to its market capitalization. In July 2020, the market cap of Cardano was close to $4 billion, and the rate of a single coin was $0.15, which is pretty affordable.
#2: Significant Features That Sets Cardano Apart
The key factor that makes Cardano the best among others is its Ouroboros blockchain. It is a consensus mechanism that is unique to Cardano. Precisely, it is two blockchains that work in tandem with each other. The Ouroboros system is a Proof-of-Stake (PoS) mechanism that guarantees complete security. In order to ensure a level of sustainability and security of the blockchain, the system depends on peer-reviewed research and randomly selects miners to accept transactions.
Cardano has already taken a step ahead from Ethereum by establishing the move that Ethereum has been planning for a long time, which is using the Proof-of-stake algorithm.
Apart from this, Cardano uses time slots, known as 'epoch.' Here, transaction blocks have to be created within a time frame by the 'slot leaders' who stakeholders vote. Epochs are a unique part of the Ouroboros Praos Census Algorithm and are beneficial in improving the wallet's performance. By storing the blockchain in Epoch files, users can reduce the number of files and hard drive space required to store the blockchain.
#3: Cardano's Architecture
Cardano has a unique layered blockchain architecture that has two main elements. One is Cardano Settlement Layer (CSL), which is used to carry out cryptocurrency transactions. The second one is the Cardano Computational Layer(CCL), which allows developers to enter and maintain applications.
Most other cryptocurrencies like Bitcoin, Ethereum, Litecoin, or Ripple function with a single layer mechanism that transfers funds and validates transactions. This is one of the features of Cardano that is appreciated by investors and the major reason why Cardano is going to explode in 2021.
This two-layered network reduces network congestion, slower transactions, and higher fees, which is often caused by a single-layer architecture. The CSL powers the peer-to-peer transactions seamlessly and ensures the safe transfer of tokens between users. At the same time, CCL is the lifeblood that ensures the chain's security. It acts as a ground zero to deploy smart contracts and as a framework designed to ensure regulatory compliance with jurisdictions.
#4: Cardano's Smart Contracts
Cardano's layered architecture facilitates smart contracts that ensure its scalability, adaptability, and security. It is designed to use its smart contracts to their full potential, enabling the platform to establish self-executing agreements that do not require professional oversight.
The deployment of smart contracts enables the support of decentralized applications (DApps). This powers Cardano's philosophy to make services once offered exclusively in the traditional financial space and make them more accessible through innovative blockchain solutions.
Would you consider investing in Cardano ADA?
Cardano's Major Upgrades
1. Cardano's Mary Hard Fork
The Mary hard fork of Cardano is one of the significant upgrades that kickstarted Shelly's transition to Goguen. It unlocks a different world of opportunities both for the Cardano community and the businesses using blockchain technology.
The Mary hard fork will now bring the native asset support to Cardano, which will further unlock the network's decentralized finance. It will also transform Cardano into a truly multi-asset network that enables users to issue and distribute their tokens on the Cardano blockchain.
2. Cardona's Goguen Upgrade
One of the best reasons why Cardano is going to explode in 2021 is its Goguen upgrade, which will be the most important release for the Cardano blockchain network.
With the integration of smart contracts, the Goguen era will usher in bigger technical capabilities for developers to create DApps. Cardano will go through two forks to reach the Goguen upgrade. Recently the second era of Cardano's development was established and is known as Shelley.
The Shelley era decentralized the core of the system. Goguen will eventually introduce more functionalities to the chain, including the implementation of a multi-asset blockchain plan.
The Goguen era, which is the third era, will open up more tangible opportunities for developers and enterprises. It makes Cardano accessible to a wider audience via Marlowe.
This enables financial and business experts to create smart contracts without any previous technical knowledge. Therefore, the Goguen upgrade will unlock new developments of enterprise-level, critical, decentralized smart contract applications and will be marked as a significant step in upgrading the abilities of Cardano.
Why Cardano Is Going To Explode This Year: The Bottom Line
Cardano is moving forward and reaching greater heights. The transition to the Goguen era will allow developers to create a whole new ecosystem based on scientific principles and scalability.
Cardano's ADA surged by 92% last week, hitting a market cap of $21 billion, and this is also a reason why Cardano is going to explode in 2021, according to crypto enthusiasts. ADA is thus poised to see growing heights; thanks to its latest and upcoming updates, Cardano will make its space in the favourite list of investors for 2021 and the foreseeable future.
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