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While cryptocurrencies have gained a lot of attention over the last few years, recent volatility has made them a riskier choice.A rough patch during the past few months has some questioning their reliability as a form of currency in the future.However, Cardano ( ADA-USD ) has some big catalysts ahead which should provide its investors with a bit of solace.
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Cardano is a public blockchain focused on decentralization and blockchain technology that offers wide opportunities for individuals and businesses.Charles Hoskinson, the creator of Ethereum ( ETH-USD ), and Jeremy Wood, the founder of Emurgo, are the brains behind Cardano.
As a smart contract platform, Cardano offers peer-to-peer transactions using a Proof-of-Stake algorithm .The team behind it wants to make it easier for developers to build applications on top of their network by providing open-source tools and free from any central control.
First developed in 2015, Cardano has not grown at the same rate as other cryptocurrencies like Bitcoin ( BTC-USD ) or Ethereum.
Its unique features are not just limited to its code.
The team behind Cardano is actively developing a new generation of decentralized applications for the platform.
7 Safe Investments for Seniors to Consider in 2022 The Hydra update expected later this year will provide increased scalability, meaning you can take care of up to 1 million transactions per second on the platform.
As it moves ahead with its development pipeline, there are several reasons to invest in this one.
What’s the Upgrade Mean for Cardano? For the past decade, Hoskinson has been a value-progressive activist in cryptocurrency and is working on Hydra, a new upgrade on the Alonzo hard fork, to improve scalability and storage.
The Cardano team is looking to improve fees for users of their cryptocurrency coin-service, which includes both low-cost transactions and security.However, they believe that current levels won’t be enough when it comes down to real-world use cases.
That is what the Hydra upgrade seeks to solve.
Hydra is a new technology that aims to help address the scalability needs of today, giving you off-chain solutions that work with other blockchains.The main chain focuses on functions for all parties involved.
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To reduce both the cost and the time involved, Hydra ensures that the network remains steady by dynamically maximizing momentary bandwidth.With Hydra, it will be easier than ever before for customers to build things on the Cardano network.
Plus, there is another update that Cardano investors can look forward to.Our writer Brenden Rearick recently reported on the Mamba upgrade and how that will affect Cardano moving forward.
There are hints that we could see that update within a few weeks.Therefore, it’s important to keep your eyes peeled for that one.
Conflict Helps Crypto Recover The Russia-Ukraine conflict could ultimately prove to be a turning point for cryptocurrencies, providing something of a tailwind.With the ruble at historic lows and their country’s economic viability challenged by sanctions and Western business exits, Russians are turning to crypto due to the steep fall in the exchange rate of their currency.Ethereum, Binance USD ( BUSD-USD ), and XRP ( XRP-USD ) are some of the cryptos that are gaining the most momentum.
For a fuller list, you can refer to our piece on the matter.
Smart Bet in Volatile Market Conflict aside, the Cardano network is a blockchain platform growing out of the need for scalability and interoperability.
It has a heavy development pipeline and good functionality.This is a reason for optimism as Cardano looks like it could do well in the coming weeks.Investors have made a shift toward safer investments over the past few months.
However, Cardano has been a superb performer in the crypto space, up 5.55% in the past week.And considering the factors highlighted, that fact will not change.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .
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