There is a lot of buzz around Cardano at the moment. This is based on the upcoming Shelley release. Already Cardano 1.5 has been released, which takes Cardano closer to Shelley. If Cardano’s price action in the last 24-hours is anything to go by, then it clear that the Shelley release could propel Cardano’s price by a huge margin. However, beyond the speculative aspect of it, why is Shelley such a big deal? After all, there are so many coins that investors can stake, right?
Well, what makes Shelley so special is that it the process of making Cardano a truly decentralized blockchain. A decentralized Cardano will be one of the most powerful blockchains around. That’s because, it is the first provable proof-of-stake blockchain. Cardano’s Ouroboros places Cardano at the same level of security as Bitcoin’s POW algorithm, but without the energy issues of Proof-of-Work. This means that with the Shelley release, Cardano will be one of the most secure POS blockchains in the market. This is a big deal for several reasons.
For starters, the value of any blockchain is in its security. If it can easily be compromised, then it’s useless. Cryptos that have been successfully compromised in the past have lost immensely, and none of them have shown any signs of any serious comeback. Security is especially important for platform blockchains. That’s because, for developers to take an interest in building applications on a blockchain, they need to be sure that it is secure. No one wants to build on a blockchain that can be compromised at any time. The investment in time and resources just isn’t worth it, more so, for applications that are aimed at sensitive industries such as finance. In essence, Shelley makes Cardano attractive for developers, and this will be a source of value for Cardano in the long run. This, without a doubt, makes Shelley extremely important for Cardano.
On top of that, with the Shelley release, Cardano will become censorship resistant since it will be a decentralized network. This will make it extremely attractive to Dapps developers, when combined with its security. For instance, developers looking to make social networking applications will find Cardano’s censorship resistance an asset. That’s because, these are some of the applications that are always at risk of censorship by governments. Again, this makes Cardano (ADA) highly valuable since it is the token that powers the Cardano ecosystem.
In essence, Cardano (ADA) could be on a long-term upwards trajectory, now that Shelley is on track to being released. Not only will it be driven by short-term FOMO, but it also has massive fundamentals backing it up. It has what it takes to attract Dapps in large numbers. When all these factors combine with the relationships that the IOHK team has been building with different countries, it’s not hard to see that this is one of the best blockchains in the market. It’s crypto that could make patient investors wealthy. The ability to stake and earn a passive income will be a bonus.