In a recent video from cryptocurrency-based YouTube channel Cheeky Crypto, the host emphasizes Cardano's (ADA) approach, which separates it from its competitors, particularly its reliance on “academic rigor” and “research-driven development.”
After dropping reasons to be bullish on Cardano, the host highlighted the core use cases of blockchain; Starting with the video, the host introduces Cardano as a proof-of-stake (PoS) blockchain platform developed using a “systematic, evidence-based approach,” firmly grounded in the principles of “scientific research and academic thought.”
According to the host, the Cardano development team aims to “restore confidence in the global economic system.” This includes creating technologies that “promote safe, transparent and sustainable international business practices.”
Cardano to become the favorite
Delving deeper into the video, the Cheeky Crypto host revealed that apart from the advanced technology, the platform also aims to make a “real-world impact,” especially in developing regions.
According to the host, the platform has initiated projects to provide financial services to the world's “unbanked population”, which is estimated at $1.7 billion. Cardano's partnership with World Mobile in Africa is an example of this highlight. The host noted:
They (Cardano) are working with projects like World mobile to connect more people to the world and also in my opinion create new economies and change the lives of many people.
The Cheeky Crypto host also notes Cardano’s contribution to the decentralized applications (DApps) sector. With a “heavy focus on security and scalability,” Cardano is creating a more stable environment for decentralized applications, the host said.
When discussing the functionality of blockchain, the host defines it as a “third generation cryptocurrency,” addressing the common challenges faced by “layer one adoption of blockchain.” In reference to these challenges, the host revealed:
This issue covers a number of blockchain concerns including topics such as scalability, interoperability, sustainability, and security. Cardano therefore seeks to solve these problems primarily by developing design principles and engineering best practices.
Concluding the use cases highlighted by the host that made him bullish on Cardano, he mentioned that initially, the blockchain could only process a limited number of transactions per second. The team developed Hydra, a layer-2 solution that uses state channels to process off-chain transactions, to overcome this problem.
The introduction of Hydra represents a significant leap, enabling Cardano to theoretically handle over a million transactions per second, significantly enhancing the network's capacity. According to the host, these use cases are why Cardano could be one of the “front-runners” in the cryptocurrency sector in the future.
Cardano's ADA is navigating bearish waters
Meanwhile, despite these technological strides, ADA, Cardano's native token, saw a downward price movement. ADA is currently trading at $0.460, and has lost nearly 10% of its value over the past week. Analyst Ali recently drew parallels between ADA's current consolidation phase and its pattern in late 2020.
According to Ali’s analysis, if Cardano follows its path in late 2020, ADA could see a significant rally, possibly reaching new highs.
#CardanoL's current consolidation phase mirrors its behavior in late 2020. If history repeats itself we might see that happen $ada Its upward trend resumes around April. A continuation of this pattern would likely lead to a rally towards $0.80, a short correction to $0.60, and then $7! pic.twitter.com/RuRA2EDMNP
– Ali (@ali_charts) January 19, 2024
Featured image from Unsplash, chart from TradingView
