Why Invest in Cardano ecosystem and hold ADA digital assets?

Cardano is a blockchain platform with tremendous upside potential to become one of the most valuable digital ecosystems in the near future. As of today it is a top-ten cryptocurrency in the market. Moreover, its technology is designed for the future of finance due to its Proof of Stake methodology, decentralized apps, and smart contracts capability.

Cardano is a third-generation blockchain technology built from the success and challenges of previous blockchains, implementing proven designs from blockchains like Bitcoin and Ethereum.

Why Proof of Stake vs. Proof of Work

Proof of Stake is the process of generating blocks on a given blockchain by staking cryptocurrency (tokens) into participating nodes. These nodes validate transactions and distribute them to the other nodes of the network and earn rewards in return as payment. Cardano uses ADA as its currency. ADA holders can stake their ADA tokens to Cardano pools and earn 4-6% APY paid and generated by the blockchain itself via the consensus. On the other hand, Proof of Work generates blocks using hardware by solving complex algorithms via a process called mining. The mining process is used by Bitcoin and Ethereum blockchains. Mining is becoming a problem due to the number of resources individual miners and organizations have to deploy to generate blocks and sustain the blockchain, hence questioning the long-term viability of Proof of Work.

Why stake your Cardano position, and Why is it risk-free compared to other blockchain alternatives?

Cardano’s consensus is designed with investors’ flexibility in mind. Individuals can stake their funds risk-free of losing ADA tokens. Furthermore, when staking in Cardano blockchain, funds never leave their original wallets and funds don't have holding periods. Also, the reward’s mechanism is embedded in the blockchain core, meaning that earnings percentage is calculated and distributed automatically by the Cardano blockchain.

Cardano Future Value

Blockchains will facilitate how individuals and organizations send and receive monetary value. Cardano intends to function as a public decentralized network without needing a central point to function, making it practical to connect individuals around the world without extra complexity. Cardano development roadmap is set with a long-term view of how blockchain technology is transforming how we connect and share value over the internet.

Why Cardano has an incredible upside potential for investors:
  1. Cardano’s Proof of Stake incentifies decentralization and growth by rewarding pool owners financially. It is an effective strategy to generate organic participation into a sound and secure network that eventually will be sustained by itself. In contrast, other blockchains have chosen to advertise voluntary participation without financial rewards, which creates growth challenges in the long run.
  2. Cardano is a top-ten blockchain in market capitalization. However, it has a lot of room for improving its valuation in the short and long term. Visit the Cardano Roadmap page.
  3. Cardano is ready for smart contracts, decentralized apps integration, and NFTs marketplace. Moreover, it has all the necessary tools needed to leverage the rapid adoption of cryptocurrency.

Last modified: January 12th, 2022

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