What is Cardano – Is ADA a Good Investment

13 Oct 2022 | Cryptocurrency news

The crypto industry has a lot to offer to an investor – there are thousands of coins and tokens on the market to choose from. However, not many projects are as ambitious as Cardano

Created as an alternative to Ethereum and run by “innovators and visionaries”, this blockchain has gained massive following over the years. It has also been sitting in Coinmarketcap’s top 10 list for a long time now.

But what is so special about it, really? 

Today we will be taking a closer look at Cardano – what exactly is it, how it works, why it matters, and should you consider investing in it. 

Let’s start with the basics. 👇

What is Cardano (ADA)?

Cardano is an open-source decentralized network meant to bring a positive change into the world. It is developed by scientists, engineers and other experts in the most secure, efficient and scalable fashion.👩🏻‍🔬

Released in 2017, Cardano was among the first proof-of-stake blockchains in existence. It was founded by Charles Hoskinson, the co-founder of Ethereum. After having a falling-out with Vitalik, Charles moved on to create a blockchain that would be more sustainable and interoperable than Ethereum or Bitcoin. 🌱

Charles Hoskinson - What is Cardano

Charles Hoskinson, Cardano creator.  Source: iohk.io

ADA, Cardano’s native token is named after Ada Lovelace, a famous mathematician known as the first computer programmer. Every holder of ADA gets a possibility to vote on the future changes in the Cardano network.

What Makes Cardano Special? 

You can be sure that Cardano didn’t gain its popularity without a reason. Let’s take a look at some of its unique features that attract users and developers alike.

Firstly, any new features and changes that are added to the blockchain are peer-reviewed and agreed upon by experts before they can be implemented. Challenging potential changes in such a way ensures that only meaningful and impactful updates make it into production.

Cardano also features a unique two-layered architecture. It consists of: 

  • Settlement layer (CSL) – used for carrying out transactions
  • Computational layer (CCL) – used for network governing and deploying smart contracts.
Cardano layers - What is cardano, is ADA a gppd investment

Cardano blockchain layers. Source: cointelegraph.com

These two can interact seamlessly as well as independently from each other to ensure higher overall efficiency and minimal network downtime during updates etc.

On top of that, up until September 2022, Cardano was the biggest proof-of-stake blockchain out there. This changed after Ethereum switched to PoS, however it will still be gradually introducing new features, so it will take time for it to truly catch up with Cardano.

Finally, Cardano has its Ouroboros proof-of-stake technology. This is a innovative staking solution that, among others, offers these unique features:

  • It guarantees security as long as 51% of the stake is held by honest participants 🛡️
  • It gives incentives and rewards to participants – you can earn ADA just by staking funds in the network 💰

Judging by this impressive utility and popularity, we can only assume that the scientific approach Cardano uses is definitely worth it. 😄

Is ADA a good investment?

When considering a potential investment, it’s important to know the positive and negative sides of the project at hand. So, let’s look at both of these, starting with advantages. 👇

Advantages of Cardano ✅

Some advantages of Cardano that can help it perform better in the future are:

  • Environmentally friendly 🌱 – Cardano’s proof-of-stake architecture is significantly greener than proof-of-work architecture. According to Hoskinson, Cardano is 1.6 million times more energy efficient than Bitcoin.
  • Faster and Cheaper Transactions 💨 – Cardano has a transaction speed of 250 transactions per second (TPS). This makes it way faster than Bitcoin’s 4.6 TPS and Ethereum’s 15-45 TPS speed. 
  • Peer-Reviewed Networks 🧑‍🔬 – As mentioned previously, every new update is closely looked over which may help avoid big mistakes in the future updates.

Disadvantages of Cardano ⛔

It would be strange if there were no downsides to any blockchain, and ADA is no different. Here are some points to consider:

  • Still in development 🔧 – many of Cardano’s features, such as its scalability, are still being developed. And while the growth is gradual but steady, it poses a threat of other blockchains overtaking Cardano.
  • Security concerns 🤔 – While Cardano is rather secure, it is still susceptible to things like 51% attack, also known as double-spend, among some other risks.
  • Lack of developer interest 🫥 – Cardano showed quite a slow developer growth in 2021, with blockchains like Solana or Near showing more than 4x the developer acquisition numbers.

So should you invest into ADA?

We believe that Cardano is a very promising blockchain. ADA has been sitting in the Coinmarketcap’s top 10 list for a long time now and is currently in 8th spot. And not only that, but it showed more growth than BTC or ETH over the last year! 😯

Cardano market cap - What is Cardano - Is ada a good investment

8th spot in terms of market cap for Cardano. Source: coinmarketcap.com

And given its unique ecosystem and future growth potential, we do believe that Cardano is yet to reach its full potential and popularity. 


So there you go – you now have an understanding of what ADA is, where it came from and where it may be headed. 

Of course, it’s up to you if you find Cardano compelling enough to invest into it, but if you do decide to buy some, you can do so easily with Guardarian.

With us you can buy over 300 different cryptos fast and securely. Just choose what you are buying, how you want to pay, and after a short security verification your funds will be on their way.

It’s really that simple – with no registration and no hidden fees!

So come check us out at www.guardarian.com and as always – good luck and safe investing! ✨