Currently, ADA is one of the fastest-growing assets in the crypto space. Thus, it is attracting new investors. One unique thing about this cryptocurrency is that it is among the few projects that are used by government bodies and enterprises.
It is worthwhile to refer to ADA as a third-generation cryptocurrency. That is because it takes the lessons learned from the first and second generation (Bitcoin and Ethereum) cryptocurrencies and improves upon their shortcomings. Third-generation cryptocurrencies like Cardano use new developments like layered architecture to improve security, scalability, and sustainability. Thus, they address flaws in the system, rectify inefficiencies, and create more usefulness.
There are numerous advantages that you will gain when you purchase the ADA cryptocurrency. In today’s article, we will be looking into the top 10 reasons to buy ADA tokens. Let’s get started.
Top 10 Reasons to Buy ADA
Cardano is transitioning into a decentralized system.
Cardano is transitioning from a federated system operated by its creators to a decentralized system operated by a community of stake pool operators. It means that the system will be incredibly decentralized and proven mathematically as secure as bitcoin. By the end, we are expecting the entire network to be entirely operated and owned by the community, with 100% of all block production being handled by community stake pools. This means that the system will be fully decentralized, giving you full access to your token. The ADA has been quoted as being better than BTC. By the time it is fully decentralized, the popularity of the cryptocurrency will likely increase – thereby increasing the token value. This makes it a unique token to invest in.
Fast and Reliable
The Cardano (ADA) is fast, robust, built to scale liquid democracy on-chain voting, which is open to all. The project allows the entire protocol to be driven by the community. The community is able to make choices more robustly compared to the industry standard. Also, all transactions are smooth and reliable. The platform is highly secured and reliable. It is one of the platforms that give comfort to investors. So, if you purchase the token, there will likely be no security issues or transaction issues, unlike other Altcoins.
Running of Smart contracts Efficiently.
ADA is the best network stack metadata implementation in the industry. The extended UTXO model offers Cardano the ability to run smart contracts safely while maintaining scalability capability. Cardano was designed to use smart contract technology to its full potential. The platform’s smart contract support will allow it to establish self-executing agreements that do not require professional oversight. With the smart contract, you can conveniently input any particular condition that has to be met, which will be executed automatically without any need for the user’s constant involvement.
Offers Seamless Hard fork
The platform’s Hard Fork Combinator technology offers seamless upgrades/hard forks. Unlike other blockchains, there are no obtuse or cumbersome forks with ADA that force end-users to “claim” tokens or coins. This means an entirely seamless upgrade. And once the hard fork is fully implemented, users will be able to create their own user-defined native token and use it on the network. It is one of the features that differentiates Cardano from other cryptocurrencies.
Built on Solid Foundation
The project was created on a solid foundation by some of the cryptocurrency industry experts, who have been working/planning this for over half a decade. Cardano has published over 95+ peer-reviewed papers at cryptographic conferences. Most of the other projects are building off of ADA’s existing papers. The Cardano was designed and built from scratch by the brightest minds. It is a project which follows a unique academic approach. It comprises a great development team and is the first blockchain that uses multiple layers. The platform provides a more balanced and sustainable ecosystem that better accounts for the user’s needs as well as other systems. It means that all transactions in the network are secured and promises a more friendly atmosphere for all transactions.
The Cardano blockchain lead development firm has established a research center at the University of Wyoming (UW). It means that the platform is innovating and growing daily. The various partnerships it entered with Tokyo Tech, University of Edinburgh, University of Wyoming, University of Athens, shows that the token value is likely going to increase in the future, making it a profitable future investment. This adds to a healthy educational network that enables further innovation with graduates from these blockchain programs, eventually building on ADA. These innovations will likely increase the coin’s popularity, thereby increasing the token value. This means that the token is suited as future investment.
Use of Proof of Stake
Bitcoin can scale up to 3 to 7 transactions per second (TPS), and Ethereum can scale up to 10 – 20 transactions per second. The solution to this issue is Cardano’s Ouroboros Praos proof of stake algorithm, which can process around 1000 TPS. While BTC relies on proof of work protocol, Cardano uses the proof of stake mechanism, which costs less in energy consumption and helps to reduce the transaction fees. You only need to put it in your wallet and pick a pool. It takes about 3 clicks, and you begin to earn ADA. No special hardware or electricity demand is needed. Also, your ADA can be moved at any time.
Use of Native Asset
Cardano uses native Assets, ERC 20 Bridge converter, and the KEVM, which allows Ethereum ERC 20 tokens to be transferred from the Ethereum network to Cardano. It means that interoperability is done right, and there is nothing like a “wrapped asset.” Current ERC 20 projects can move over quickly and also retain their same base code. This will enable the ETH Dapps to function effectively and cheaper on ADA. Another advantage of this feature is that it will reduce the high fees associated with Defi.
Unique Voting System
All the ADA projects/tokens were built to have their own treasury system and voting system. The voting system will make people feel like they have a voice and also how to get the right social dynamic. The unique feature will allow increased participation and discussions regarding the protocol. It will increase community ballot and achieve social dynamics. That means users of the token will have the option to voice their opinion regarding any issues in the network. Some developers see this feature as a great thing and have integrated it into their network.
A proven solution to Supply Chain Tracking
Cardano has proven to be a supply chain tracking (Beef-chain) along with PoC’s done with New Balance (tracking counterfeit shoes) and Ethiopia (Coffee tracking). Food traceability has become a priority in the food industry, with consumers demanding for healthier products. BeefChain, a blockchain start-up, uses a technology to allow consumers to trace their beef products. And just recently, BeefChain, partnered with IOHK, the technology firm behind the Cardano public blockchain. IOHK will help BeefChain in the technological aspects of their blockchain tracing endeavor by supporting them in using Cardano and the IOHK Atala trace solution. The BeefChain works with the University of Wyoming, which received a $500,000 Cardano cryptocurrency donation from IOHK to support its Blockchain R&D Lab.
All these show the level of innovations coming to the Cardano platform.
Since the total number of ADA coins is minimal, there will always be an increased demand for the token. Cardano is a project made up of bright minds who is ready to tackle the next-generation blockchain issues. Also, the decentralized nature of the Cardano blockchain makes it a secured cryptocurrency to invest in. Its layered architecture provides scalability.
In summary, these features make Cardano an innovative altcoin with huge potential, which is capable of increasing in value in the future. It invariably makes it an excellent choice to invest in by both traders and investors. What do you think about the ADA?
Written by: Narender Charan