Markets Crashing! - But Does Cardano Still Have Potential?

The current look on the crypto markets does not bring any joy what so ever. The complete market is in the reds and there is little hope in sight that this might change any time soon. Nevertheless, it is important to talk about the ongoing projects and analyze what is going on with them. In this article I want to cover one of the most controversial crypto projects that is being discussed by the crypto community: Cardano. Every time somebody mentions Cardano, there are either absolute haters of this projects or the total die-hard fans of this coin. I can understand both sides and this is why I want to take a closer look at this project. We will cover the current situation, some potential challenges as well as its upsides. Finally, we will conclude this article with a discussion about its potential!

Recent & Upcoming Upgrades

Let’s start to look at some recent and upcoming upgrades that the Cardano project and its developers have been releasing. First one being the long awaited decentralized application in the form of a decentralized exchange by the name of Sundae Swap. With the release of this exchange, many users were eager to test it out and overwhelmed the blockchain by doing that. This lead to very long waiting times and a bad reputation, but looking back in history, almost every project had this issue which is why this was already calculated in. In order to fight this issue the block-size was increased which resulted in higher transaction speed and brought the project in some calmer territory.

One of the most exciting upgrades that will happen in the future is the Hydra update. This update is supposed to be a game changer for Cardano in general. It is well known that ADA has some bottle necks in the scalability area. With this upgrade this problem is supposed to be solved once and for all. This scaling solution is promising each staking pool to be able to perform around 1k transactions per second. With over 3000 staking pools this would mean around 3 million transaction per second which would make ADA one of the quickest blockchains out there.

Future Challenges

With these upgrades there are some downsides and future challenges that we need to cover. One of them is currently the scalability bottle necks. The above upgrade sounds very nice and it promises a lot of things. Unfortunately, it is not out yet which makes Cardano one of the slowest smart contract blockchains out there. This is a big challenge to face, as there are many competitors who are faster and cheaper and they do not sleep as well.

Another downside that might also be seen as an upside is that Cardano is very research oriented. The issue with this approach is that it is not very practice oriented. The developer team wants to do it right on the first try and it seems like this approach is just a little too slow for the fast paced environment we are currently in. On the bright side, this seems to be changing as Cardano tries to launch more upgrades, but the question remains, is it too little too late?

Upsides

Before we draw any conclusions, we need to look at the upsides as well. While it was certainly not the best situation to be a Cardano developer when the decentralized exchange launched, there is a bright side to it. While many Blockchains went down, like Solana, Cardano’s blockchain stayed stable and did not go down. This can be seen as a true success if compared with other competitors.

Furthermore, the upcoming upgrades might take a little bit longer than expected but by the end of 2022 the project might launch some amazing upgrades like the above mentioned Hydra. This would catapult Cardano into the fastest blockchain out there and it will certainly have an impact on its usability and user base.

Last but not least, one of the biggest trumps that Cardano currently has, is its developers. All issues that were faced during the past months were addressed very professionally and correctly. This gives a lot of faith for the future that significant improvements will come constantly. Not only that but it seems like the development team is very determined long term which can not be said about every crypto project out there. I think it takes a lot of determination to go trough the research approach first, which is why I am positive that Cardano will make its way up.

Potential & Conclusion

I want to conclude this article with some thoughts about the potential of Cardano. Currently it looks very bad because all of the crypto market is going down. This is truly not a reason to worry. There is even a statistic that 90% of all ADA holders are down which sounds concerning at first glance but is really understandable if you think about it. Furthermore, it looks like institutional money is still flowing int this project as well as in ADA funds which means that institutions are believing in this project and see a long term potential in this regard. Not only that, but Cardano still has a very large user and fan base, that are apparently ready to hold during bad times. This means that this projects would not go anywhere, even if it is during a massive bear market that we are about to enter.

Like I mentioned in the beginning, I can understand both sides of the crypto community: the one that hate this project and the ones that are sticking to it through hard and good times. I consider myself on the hodler sider of the community. I think the research approach will pay good dividends in the long term and that the project will have its place in the future of the crypto space.

Published by ga38jem on
Steemit
On 12th May 2022