Cardano has a native cryptocurrency called $ADA and it is used as a medium of exchange. It uses a specific kind of proof-of-stake consensus mechanism called Ouroboros which allows the efficiency of energy and decentralized governance. It aims to offer a safe ecosystem for deploying smart contracts and for the development of decentralized applications. Cardano blockchain platform prioritizes flexibility, good security, and a sustainable ecosystem for building projects and smart contracts.
Cardano was founded by a co-founder of Ethereum Charles Hoskison in 2017. It is a specialized and first platform that uses peer-reviewed decentralized blockchain protocol to utilize a scientific approach and academic research to improve its protocol and features. Cardano also provides a more secure and sustainable structure for decentralized applications.
In the subsequent paragraphs of this content, we will be discussing the uses of Cardano, the merit and the demerit, and the factors that affect the price of Cardano.
Uses Of Cardano?
Cardano as a blockchain platform has several use cases in different institutions, ranging from finances, education, agriculture, healthcare, etc. Below are some of these uses;
- Education: The Atala Prism play a vital role in the education system. It is a credential and ID problem-solving platform which uses a tamper-proof ecosystem to safeguard academic certifications.
- Agriculture: Atala Trace or Emurgo solution helps to certify and trace products in the Cardano blockchain.
- Decentralized Finance: The native cryptocurrency of Cardano $ADA can now be used in different decentralized applications (DAPPs) due to the development of smart contracts in Cardano. In a decentralized exchange, $ADA is used for providing liquidity, to get a loan on a decentralized platform when it is used for providing collateral and used for NFTs trading.
- Finance: For the unbanked citizens in some developing countries in Africa and Asia, the possibility of digital identity can be reviewed using Atala Prism. Blockchain governance tools cooperated with more than about 45 countries in 2019.
- Healthcare: The origin and supply chain of Pharmaceutical products can be verified and authenticated by the use of Atala Scan which guarantees the safety of patient globally.
The Merit Of Cardano
Cheap And Speedy Transactions:
Over 216 transactions per second can be processed by Cardano. This transaction per second go up with time as there grow and improve the chain to scale more efficiently. When compared to Ethereum’s over $10 transaction cost, Cardano transactions are far more affordable, coming in at less than $1. The scalability of Cardano is increased by this. While, Ethereum completes its upgrade to its sharding system to do the same for it.
Peer-Reviewed Protocol:
To generate peer-reviewed research which guild blockchain development, the team of Cardano works with academics closely.
Convenient Environment:
As the result of the proof of work algorithm which Bitcoin uses, it consumes a lot of electricity. Well, the consensus mechanism used by Cardano (Proof Of Stake) makes the environment one of the most convenient for blockchain systems. More than Bitcoin, Cardano is 1.6 Million more energy efficient.
The Demerit Of Cardano
Low Developers Involvements:
Compared to other blockchain growing ecosystems, Cardano was rated to have just an 86% growth rate according to Electric Capital Developer Report. It has a slow-developing ecosystem. Comparing the $Near and $Solana ecosystem to Cardano, they have grown over 10X even when Cardano has a higher market capitalization than both. The involvement of developers could be a result of the use of complicated programming language which might be difficult to comprehend by most programmers.
Double-Spend:
Among the challenges faced by Cardano, double-spend is one. Slot leader transactions might be approved at the same time, usually from two of them. 51% attack is another challenge in this category.
Factors Affecting The Price Of Cardano
Network Stability And Security:
One of the essential things that is important to investors’ confidence is network stability and security. The price of $ADA can be disrupted when the network is being tempered.
World Economy Conditions:
The worth of Cardano can be affected indirectly due to some global economic problems such as; interest rates, inflation, etc. However, this is not all about Cardano but the whole cryptocurrency due to their volatilities.
Use Cases And Adoption:
The worth and price of Cardano can be influenced based on the number of individuals that adopt it and also based on the real life use cases it is made up of. The more people adopt a project, the more the demand increases, price and also as well increases.
Market Liquidity:
The price volatility of Cardano can be greatly affected due to the available liquidity in the project market. Liquidity affects price stability, generally high liquidity results in low price volatility.
Policies:
The policies around cryptocurrencies affect their worth, in this case, $ADA is not left out. If there is a favorable policy around Cardano, it will increase the level of adoption and more investors to the Cardano.
Summary
As a result of the complications and market volatility of cryptocurrency, knowing the worth and price of Cardano in 2025 will be unpredictable. It has many uses in different institutions, has good advantages, and as well has some demerits. However, the worth of Cardano is affected by several factors such as; Market liquidity, use cases, and adoption, and world economy conditions such as; inflations—interest rate, etc.
To predict the future worth of Cardano, it is essential to carry out analysis; fundamental and technical. Before making any investment, always carry out a proper investigation about the project, read its whitepaper, and study the real-life problem it was developed to provide solution for.
