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Cardano’s core technology makes it a viable ecosystem to build new and exciting applications, platforms, products, and services.
It has been an exciting week for the Cardano ecosystem and its fans. ADA has been one of the strongest market performers in the past seven days, yielding a 30% price increase. There is much on the horizon for Cardano’s ecosystem, including technical developments and exciting projects.
Cardano Propels Upward
While all crypto markets have found renewed bullish momentum this week, they don’t all gain value the same way. Some currencies will note more significant gains than others, with Cardano leading the pack this past week. Its 30% ADA price increase has gotten much attention and propels the currency back above the $1.15 mark. It is now crucial to sustain this momentum moving forward, although that will always be tricky.
Looking beyond the price speculation, there are reasons to be excited about Cardano in 2022. Numerous projects leverage this ecosystem’s technology, there is cross-chain compatibility with Ethereum dApps, and the overall roadmap looks interesting. It is essential for blockchain and crypto ecosystems to keep evolving and innovating whenever possible.
Strong Staking Support Reduces Cardano Liquidity
Unlike Bitcoin or Ethereum, Cardano enabled support for proof-of-stake a while ago. As a result, users are incentivized to stake their ADA in a wallet or through an exchange to earn rewards. Current rates indicate users can achieve a passive income stream of over 5% annually by staking Cardano, which is rather appealing. More importantly, over 71.7% of the circulating ADA supply is currently locked in staking.
A crucial benefit of staking is how it helps reduce the liquidity of the circulating supply. Fewer tokens available for transactions mean it is more difficult to buy ADA. Although there is still nearly 30% of the supply available, the staking support can help keep the price stable. After all, a 5% passive return is far better than keeping money in a savings account.
Compatibility with Ethereum dApps
Cardano is evolving on the technical side of the spectrum. The recent launch of Milkomeda C1 establishes a compatibility bridge between Cardano and dApps built on the Ethereum blockchain. That compatibility is possible through Milkomeda’s integration of the Ethereum Virtual Machine and support for the Solidity programming language. For Ethereum developers, it is now possible to deploy their apps on Cardano.
One must remember Cardano’s native support for smart contracts and dApps. However, its programming language differs from Ethereum’s. Through Milkomeda, it is now possible to create solutions for both networks without altering code to accommodate one or the other. Users are limited in which dApps they can access today, but that list will likely continue to grow in the months ahead.
Decentralizing Web3 Advertising
Cardano’s core technology makes it a viable ecosystem to build new and exciting applications, platforms, products, and services. Decentralizing the advertising industry – on the advent of transitioning from Web2 to Web3 – is a worthwhile endeavor. Profila feels Cardano provides the best technology stack to explore that option. Moreover, the team leverages zero-knowledge solutions to establish privacy in the advertising space.
Web3 revolves around empowering users and ensuring they retain control of their data. More importantly, that control allows users to be rewarded for sharing their personal information with third parties. Through Profila’s platform, users can share data with brands and be compensated for doing so. Additionally, brands receive more accurate and actionable data. A welcome change that can benefit all parties in the equation.
The 2022 Cardano Roadmap
Charles Hoskinson laid out the Cardano roadmap for 2022 a little while ago. The addition of smart contracts has been an exciting change, but there is more to do. Hoskinson acknowledges the UTXO model needs an upgrade. He aims to find a balance between the Bitcoin UXO smart contract standard and the EVM model. Eventually, that leads to an extended UTXO model, removing unnecessary features of EVM without compromising on Bitcoin’s benefits.
Additionally, the network will undergo a few more hard forks throughout 2022 as core protocol upgrades roll out. Scalability will remain one of the big topis, as Cardano can benefit from a higher throughput, better speed, and other optimizations. A block size increase, pipelining support, reducing memory usage, and improving network nodes are just some developments to expect this year.