CARDANO - ADA - How I see this technology

Cardano is a decentralized public blah blah blah … yes, we all heard that.

Also, many of us read 1000 articles that literally tell us “Why should we invest directly into it”. Also, there are many people “true believers” or maybe let’s call them “psychopaths”, who did predictions/calculations based on which ADA should be now on $10 ($5 by end of 3/2021).

Yeah, and all of us know the reality = $1.4 today, and even my grandma has a better progress with her wheel chair.

The main idea why I’m writing this post is to go over this lovely topic “Cardano”. Even I have invested into it, and to be honest with you, I don’t regret it, but consider that TRX has better progress in 2020. And that explains much. So, what I am going to do? It’s easy. Facts, what they say, and where we are.
The first and most lovely part is that Cardano has 2 layered architecture. The first one is for transactions, the second one is for smart contracts & decentralized apps (under development = not proven yet). The biggest buzz word on this part is “minimal transaction fees” = poor & greedy people can effort it. If we compare it to BTC which is working on proof of work protocols, Cardano is using proof of stake algorithm that is called Ouroboros. It’s some kind of dragon/snake that eats his own tail.

I hope it doesn’t mean that it will destroy itself once. But this logic should be less energy consuming in the end, so no more Elon crying on twitter.

The Ouroboros protocol is quite different from other proof of stake protocols. The blockchain is split into epochs, which are made of fixed periods called slots. Slot leaders are responsible for adding blocks. 50% transaction blocks must be created within a single epoch, with blocks being approved by input endorsers whose election is based on their stakes. There is a multi-party tutti-frutti computational system, that covers fair validation processes = acts as a digital coin toss. And rewards are split between all affected ppl, blah blah blah.
Very important point here is that ADA has a limited supply = 45 billion coins. Currently are 33.8 billion coins in circulation.

So what are pros and cons of cardano? Yeah, if you google it, there are many lovely words for it.

They say:

1. Great development team: Founded by Charles Hoskinson and Jeremy Wood – co-founders of ETH. Yeah, this made Cardano that popular. So, question here: Why ETH > ADA? Why ETH grows AF and ADA remains in cold water? To not hate it that much, Cardano is also peer-reviewed to ensure there are no weaknesses in the protocol and Cardano tested various protocols and developed an advanced blockchain. So, it can prevent some bugs and hacks.
2. Scientific background: There are only few coins that has been reviewed by academics who largely praise it. Many academics work for IOHK and white papers on what they propose the project do next to improve Cardano.
3. Cardano uses multiple layers: Yeah, this is good. This is their foundation. Scalability and quick transactions could be beneficial by that (if we compare it to BTC, but what about XRP?)
4. Open Source: Haskell programming language, OK, works to me.
5. Third gen blockchain: scalability, reliability, decentralization, etc. ok ok I believe you, sounds great. Any proofs?
6. Digital Identity: Cardano can provide digital identity to unbanked citizens (hello Africa). They say that Cardano started to cooperate with over 54 countries…Hmm global player.
7. AFRICA: yes yes yes, we heard a lot about it. Every idiot say’s that this is the biggest market for cardano, and especially because of Africa we should buy it. Here we should be very careful. YES, they started to work with Ethiopia, and with ministry of education there. YES, everyone is very happy there. But come on guys, even haribo candies make these people happy there. All of them can have created their wallets, and bought few coins, but c’mon, it ends where it starts = no pesos, no senoritas. This argument will be reasonable when government start using this coin or when Mugabe family create their ADA wallets.
8. Cardano is listed on COINBASE, ETORO, BINANCE, etc.: So what? Even Dogecoin is there, and many other shit coins that are hyped but worth 0.
9. Companies are ‘flocking’ to Cardano: There is one phrase: “more than a hundred companies are looking to switch from ETH to ADA”. LOL. Who? Why? Who advised? Fire this guy. Guys, Cardano is still under development. This is very important statement here, while ETH works.
10. Proof of stake algorithm: OK, this is good thing.
11. Full decentralization: ok, since April 2021. Good job guys.

What should I consider as a risk?

1. Cardano is still in development: This should be by far the biggest reason to be cautious of Cardano! While trying to keep up competitors and tech advancements, Cardano takes its time to develop. Its causing that Cardano has been loosing its position against ETH and EOS.
   Their biggest problem is scalability. For example Ripple can process more than 1000 transactions per seconds, Cardano can process no more 300 per second (theoretically).
2. Voting system: Vlad Zamfir (ETH proof of stake researcher) claims that on-chain voting system can be dangerous and may force changes on full nodes. Plus token holders are not always tech-savvy and may vote for an unreasonable decision.
3. SYNC: some critics claim that Cardano’s assumptions that ledgers will be synced at any given point of time are not real for a global blockchain. Plus double-spending or 51% attacks are still possible. Input endorsers, for instance, may end up approving the same transactions from two slot leaders.
4. Staking: 77% of all ADA tokens are staked. With this amount of ADA staked, it can be its own Troyan horse. This is because these tokens are not moving, making it harder to get hold of the coin and therefore increasing the price.

So how to end this post?

Guys, before you invest into anything, please read a lot about it. Don’t read stupid comments on reddit/etoro/or anywhere else. 90% of all investors are dumb people/kids that watched 2 videos on youtube, and now they are smart as fuck.
Remember, it’s your money, and if you lose your savings, it will be your fault, only your fault. Btw. everything here is just my personal point of view. Don't kill yourselves and love eachother :)
Peace.
Mike.