In the last few weeks, Cardano had a bull run, which found its temporary climax in an all-time high of 1.34 US dollars. Now it is up for debate whether the ADA price can now continue to rise or whether the price rally will cool down for the time being. More important than the development on the market in this context is the development of Cardano's blockchain.
In today's article, we address the question of how Cardano is developing and how the competition is positioning itself.
Decentralized Finance is more than Uniswap and NFTs
The reason why Cardano was able to celebrate such a great success in 2021 was due to important advances in its development. The last 4 years have been busy keeping up with a lot of big promises and finally the developers can deliver.
The context in which Cardano wants to put its technology to work is particularly interesting. After all, the topic of decentralized finance is more than just DEX and trading NFTs. Admittedly, both application fields are trend-setting and Cardano wants to be able to successfully serve these sectors as well.
However, digital identities, which serve as a kind of ID with which enables users to control their personal data, are likely to be more interesting. An individual can immediately identify himself on the blockchain and make use of financial services of all kinds. These include loans, but also completely new ones such as health insurance. New business sectors could emerge in a completely decentralized and global manner.
Goguen brings smart contracts
To achieve all of its goals, Cardano must be able to execute smart contracts, because whether it's insurance, lending, or trading non-fungible tokens, each of these subsectors relies on smart contracts. The next stage of Cardano's development is codenamed Goguen and will deliver just that. Cardano is also said to offer sensitive fee advantages in transaction costs.
This has been the biggest shortcoming of the Ethereum blockchain so far, making it largely uninteresting for small investors. But the competition does not sleep and so Cardano is fighting a duel in the top 4 cryptocurrencies below Bitcoin.
The Binance Coin (BNB) has gained significantly in importance with the launch of the Binance Smart Chain and at times ranks third among the largest cryptocurrencies by market capitalization behind Bitcoin and Ethereum. Cardano follows behind, but also has to deal with competition from Polkadot. This puts ADA, BNB and DOT in a direct competitive relationship as to who can present decent solutions in the field of decentralized finance before Ethereum 2.0 is completed and possibly overcomes the old weaknesses.