Global adoption will be by usability

Price follows value. A maxim that holds true in the long term. But human ambition, coupled with anxiety, does not allow us to see the fundamentals and we only focus on the surface of the moment, the growth of the price. Price is cause, not consequence.

The popular meme “When Lambo?’” (When Lamborghini?) is indicative of their interest, only price appreciation.

What is the use of a product that only goes up in the short term due to market euphoria (FOMO, fear of missing out), if it has no real use?

Satisfied demands are those that give true value, those that sustain a price over time.

The world needs more than a sustainable currency.

The need for a fair and accessible financial system for all, the demand for transparency in government decisions, lower costs in business operations, digital identity to give inclusion to people, are examples of needs to be solved.

Cardano was designed from the beginning with one intention, global utility. From its incentive model and its scalability proposal for low cost and speed of records, it is positioned as the blockchain that will change the social economic paradigm of the world, the cryptoeconomy.

About the ADA currency (to the moon ! when Lambo? and blah blah!)

Let’s reason, and for this the “extreme scenarios” allow to clarify.

ADA was not designed as a currency such as bitcoin, p2p electronic money, but was intended as “fuel” (rewards) to sustain the Cardano network, third generation blockchain on which DeFi, DApps and DId (digital identity) run.

If for those usability issues (the Cardano network is fast, but will become immensely fast with Hydra), and ADA becomes a global currency, its price would increase exponentially, due to its scarcity (limited to 45 billion) and its demand (growing worldwide).

If its price became very high then the reason it was created, (PoS rewards) would be high, because the network fees would be many and expensive valued in fiat money.

Cardano’s governance allows voting on structural changes through CIPs, and thus adjusting its network fees to remain competitive for the network and its use.

CIP (Cardano Improvement Proposal) have not yet been implemented, but according to a recent A.M.A. by Charles Hoskinson, in the second half of 2021 tests will begin with proposed changes in k parameters, which impact on reward saturation, transaction fees and a0 impacting pledge.

Bitcoin, or Ethereum itself, with PoW consensus cannot do that, except with the agreement of more than 95% of the network mining, and with a hard fork (traumatic, for these consensus models).

To maintain today’s value between ADA and lovelaces, measured in fiat currency, we have as a growth limit X1 million , why, because 1 million lovelaces is 1 ADA, and if ADA would increase 1 million times, then we would talk about 1 lovelace and not 1 ADA for usual uses (ADA would be worth 1 million dollars). In that context the economics of the network should adjust so as not to become unsustainable (expensive), with its adaptability as I explained before.

Minimum fee: Minimum fees for a transaction are calculated according to the formula: a + b × size, where: a: is a special constant, currently 0.155381 Ada; b: is a special constant, currently 0.000043946 Ada/byte; size: is the size of the transaction in bytes (typically 200 bytes).

Cardano was born to evolve

To give a clear overview, the following are the main qualities of the Cardano network as a global usability platform.

  • Consensus PoS, which allows the community to participate in data validation on the blockchain, with financial incentives for this, and also for all ADA (native cryptocurrency) holders who prefer less effort, to delegate their participation to these, also with rewards for this. The delegation to date is 70% of the circulant, which implies a high commitment of its community
  • Distributed block validation: there are today more than 2200 active pools, (constantly growing number), being only nodes executed by the community (parameter d=0 since April 2021), which implies a decentralization in the construction of blockchain data
  • Evolution by Eras: changes in the blockchain were foreseen, and for this reason a mechanism called hard-fork combinator was implemented, which allows them to be implemented without any disruption in the operation
  • Interoperability: token conversion systems from other networks, such as the ERC20-converter that will allow tokens to be programmed with this standard and run on Cardano
  • KEVM: the K Ethereum Virtual Machine program is a compatible version of the Ethereum Virtual Machine (EVM) for Solidity/Ethereum
  • IELE: is a virtual machine that executes and verifies smart contracts and provides a human readable language for blockchain developers
  • Plutus Programming: designed on top of Haskell, a robust programming language
  • Marlowe: a domain-specific language (DSL) that will allow simple verifiable smart contracts to be easily written, starting from a single specification
  • Glow: a domain-specific language (DSL) that will make it easy to write verifiable DApps from a single specification
  • Hydra: a second layer solution that can sit on top of the Cardano protocol and accelerate it. Simulations show that each Ouroboros head can perform about 1000 transactions per second. Each pool can create a new Hydra head, so if more pools are added, more heads can be added
  • Catalyst: is a project to experiment Cardano governance, from funding community proposals, voted on by the community
    *Atala PRISM: is a decentralized identity solution that allows people to own their personal data and interact with organizations in a transparent, private and secure way
  • eUTXO: is similar to the UTXO accounting model, which records spending transactions as an output, and generates a new address with the unspent balance, to be used later, but this extended model supports multi-asset and smart contracts
  • Contracts with companies and countries: Cardano ecosystem,

Translation to spanish by @arielfavio La adopción global será por usabilidad