Cardano has appeared in the latest edition of Grayscale Building Blocks, a monthly publication from one of the world’s leading crypto funds. The report focused solely on the third largest cryptocurrency by market capitalization. Exhibitioné of some kind. The report went through various aspects of Cardano, including its creation, leadership, community, etc.
Cardano is the third largest holding of Grayscale in the GDLC (Greyscale Digital Large Cap Fund). This is why the asset manager has taken a solid interest in the asset and is educating its investors about one of the largest holdings of cryptocurrency. In the report, the pros and cons of the network are outlined. Along with the upgrades being made on the network to put it in a favorable position to compete with other big cryptocurrencies in the market.
market competition
Over time, the way the Cardano grid was organized revealed a flaw in its design. Once decentralized finance gained popularity, it became clear that the blockchain would not be able to compete on the same level as Ethereum due to its lack of smart contract capability. The developers then began work on launching the smart contract capability on the network, which became a reality on September 12, 2021. But it came years after other leading smart contract networks.
Related reading | Charles Hoskinson Releases Paul Oakenfold’s ‘Three Grammy Nomination’ Album On Cardano
With the potential of smart contracts in the Cardano ecosystem, the question becomes whether users will adopt them. Blockchain already exists with thriving decentralized finance markets. So they will need a compelling reason to move to Cardano.
The trade-off of Cardano’s approach has also led to its biggest weaknesses, which include: a historical lack of smart contract capabilities, an unproven track record of how well dApps work, a still-mature third-party developer ecosystem, a lack of ubiquitous dApps mainnet applications, and declining revenue Transaction fees for advertising.”
ADA price maintains position above $2 | Source: ADAUSD on TradingView.com
As the network has yet to be tested, there is still skepticism in the community about how well decentralized applications can work on the blockchain. Obviously, the developers have taken a break.
Cardano’s Competitive Advantages
Grayscale’s report also highlights the advantages of blockchain over others. Its leadership remains one of the most powerful components of the project. The Cardano community has always remained loyal to founder Charles Hoskinson, who has continued to share his vision of the project with the community at every turn. As such, it inspires continued support for the asset no matter how the price performs.
Decentralization is also an important feature of the Cardano blockchain. A fully open source project, the Shelly Update spread core network consensus among thousands of participants. Its original token, ADA, is carried by millions of people around the world and can be easily bought and sold on exchanges large and small.
Related reading | FinTech launches behind Cardano’s first stablecoin bank accounts and Visa debit cards
Last but not least, the blockchain has strong funding sources. Treasury balances currently stand at $1.6 billion, giving the network a competitive advantage when it comes to growing and modernizing its ecosystem as technology changes in the crypto space.
Featured image from CryptoPotato, chart from TradingView.com
