Cardano Price Prediction

With extensive experience as an electrical/software/coding engineer along with having a diverse financial background, Thomas Wettermann’s areas of interest include Machine Learning (ML), artificial intelligence (AI), and Financial Technology (FinTech). For the past few years, Thomas Wettermann has focused on the underlying technologies that support and promote all phases of cryptocurrency, Web 3.0, and metaverse ecosystems.

Cardano (ADA) is a third-generation blockchain that builds upon Ethereum - a second-generation blockchain.

Cardano Mini Logo (source: crowdwisdom.live)

As a third-generation blockchain, Cardano enhances those things that the second-generation blockchain Ethereum excelled at: scalability, efficiency, and security.

What Is Cardano’s Ecosystem?

The Cardano blockchain is an open source blockchain which means that its records are made public and are readily available. Cardano is also a decentralized blockchain network that, like Ethereum, supports self-executing computer programs by way of smart contracts.

The code and the agreements contained within the Cardano ecosystem reside in a distributed, decentralized blockchain network. With these smart contracts, the code controls the execution, and transactions are trackable and irreversible.

As such, Cardano was created to enable developers to build and publish smart contracts and distributed applications (dApps).

Smart Contract (Source: theengineeringprojects.com)

All smart contracts residing on the Cardano blockchain have certain similar traits.

For example, because smart contracts are coded into the blockchain, they have a status. This status or “state” is shared amongst every single blockchain node across the entire network. So, each node running this blockchain has a copy of the present status of every single smart contract residing on the blockchain.

Importantly, these smart contracts are also immutable. That is, they cannot be altered. Although there are ways to extend them or replace parts, there is no way to secretively manipulate the content of a smart contract without drawing the attention of the network.

In addition, the logic of a smart contract cannot be distorted. With a smart contract, there is no room for interpretation of the terms of the agreement. That is why these coded agreements are referred to as “contracts.” They act like an agreement between parties, but one which needs no third party to initiate, interpret, or oversee the results of the contract.

Cardano is structured so as to enhance these smart contracts making them easier to scale. With such a network, almost anyone – not just developers – can create their own decentralized applications.

What will Cardano be Worth in a Year?

Like every cryptocurrency, Cardano has its risks. But with Cardano, the potential reward is worth the risk.

Cardano hit an all-time high last September. Since then, it has struggled falling nearly 65% in value.

Yes, Cardano has struggled over the last couple of months as evident from its one-year graph reproduced above. After reaching an all-time high of $3.10 last September, Cardano has experienced a bit of a market dip.

But Cardano is not alone. Ethereum, the second-largest cryptocurrency, has dropped roughly 35 percent since November. And the total market value of all cryptocurrencies lost about $1.4 trillion in value over the last three months.

The US stock market has fared no better. For example, year to date, the S&P 500 Index is down 7.0% and the Dow Jones is down 4.4%. So, Cardano’s struggles are similar to those experienced in other financial markets.

Cardano is well positioned to see positive price action over the next year or so.

Scalability has been a major challenge for the biggest cryptocurrencies. Bitcoin processes about five transactions per second, and Ethereum processes about 15. That leads to slower transactions with higher fees. Visa, on the other hand, processes about 1,700 transactions per second. In tests, Cardano has processed 257 transactions per second.

And it's also planning to add another layer, called Hydra, to its blockchain. With this technology, it could potentially process 1 million transactions per second.

Development on the Cardano network continues to see significant growth and is showing signs that it is gaining in popularity amongst developers. As of December, there are over 1,000 smart contracts live on Cardano's mainnet, which are mainly focused on DeFi. And there are currently 2,300 more smart contracts just waiting to go live on the Cardano network.

Conclusion

Cardano is a decentralized blockchain that offers organizations an efficient platform to conduct smart contracts and dApps. As a third-generation blockchain, it has several advantages over older blockchain technologies, such as the first-generation Bitcoin and second-generation Ethereum. Cardano should experience continued growth over the next few years as its enhanced processing speeds will continue to attract DeFi developers.

All opinions expressed on this site are owned by Thomas Wettermann and should never be considered as advice in any form. Thomas Wettermann is not an independent financial advisor.

Any opinions, news, research, analyses, prices, or other information contained on this website is provided as a general market commentary of Thomas Wettermann and does not constitute investment advice. Thomas Wettermann will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.

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