Cardano has had an excellent year so far
Cardano (ADA) has risen 10% in the past 24 hours, amid a resurgence in the market after last week’s losses. This makes it one of the currencies with the biggest gain of 2020, an increase of 140% since the beginning of the year. It is now trading at $ 0.08, compared to a $ 0.02 low during the initial shock of the COVID-19 crisis.
Earlier this month, after the public launch of the “Shelley Testnet” on June 9, Cardano reached this year’s high of $ 0.09, despite falling short of its 12-month high of $ 0.10 in last July. Shelley is the next update to Cardano’s blockchain that promises to make the network “50 – 100 times more decentralized”.
Cardano has long been touted as one of many ‘Ethereum-killers’ – currencies that will replace Ethereum and improve its limited concept of “programmable money by smart contract”. However, despite the long list of currencies that promise to “kill” the ETH protocol – including EOS, NEO, Waves, QTUM and ICON – Ethereum firmly maintains its position in second place.
So are these gains indicative of a challenging potential for the ETH crown?
Mainnet Shelley is expected to go into operation at the end of July, after more than two years of intense development by IOHK. Its main reason for being developed was to address centralization issues in the Cardano blockchain. Until now, the main network ‘Byron’ hosted only a few nodes to validate blocks, with users participating indirectly in the network through the Daedalus wallet.
Now, with the Shelley update, ADA holders will be able to participate directly in the network. In December last year, ADA holders began to “stack” their coins on the Incentivized Testnet (ITN), which quickly proved to be a huge success. With over 12 billion stacked ADA coins and over 200 stacking pools created, Cardano is ready to be fully decentralized.
What benefits does Cardano offer over Ethereum?
The development of the Cardano blockchain came after Ethereum and, as a result, is much more complex and better prepared. This has helped to improve many unforeseen problems that Ethereum is now struggling to overcome. The scalability problem is one of the main points that Cardano hopes to solve.
By separating smart contracts from the blockchain currency layer, Cardano will be able to complete a much larger number of transactions at a faster rate. This multilayer architecture is one of the main improvements that Cardano offers to the programmable currency sector.
In addition, Cardano’s distributed proof-of-stake (DPoS) consensus method, Ouroboros, is significantly more advanced and saves more energy than Ethereum, which is still in proof-of-work (PoW). However, DPoS networks are still relatively new and have many problems that still need to be improved, in particular decentralization.
The war has not yet been won, as Ethereum continues to develop and advance its blockchain. Despite several delays, Ethereum is ready to launch the 2.0 update and transition to a proof-of-stake (PoS) network. The announcement helped raise the price of ETH and holders struggle to achieve the 32 ETH needed to qualify for participation in Ethereum 2.0.
The race for the 2nd place crown continues and, still with no exact date set for the launch of ETH 2.0, it will be interesting to see how long the coin can hold its place.