- During his recent AMA Charles Hoskinson spoke about proxy keys that will bring higher security and privacy to the Cardano blockchain.
- He also asked investors to “chill out” a bit during the recent sell-offs and rather focus on the impact of the upcoming projects.
The Cardano blockchain network has been one of the most sought-after platforms for cryptocurrency enthusiasts. Hitting yet another milestone, Cardano has hit a new milestone with more than 20 million transactions since its launch.
The Cardano blockchain has maintained the reputation of delivering uninterrupted performance while others like Solana have been struggling. The Cardano blockchain has gone through major developments over the last few months. Back in September, Cardano underwent the Alonzo hardfork introducing smart contract functionality to the platform.
This has also helped Cardano to begin a fresh journey in the emerging markets of decentralized finance (DeFi) and non-fungible tokens (NFTs). Last month, Cardano founder Charles Hoskinson also spoke about the urgency of the Hydra upgrade to handle a large amount of traffic on the platform.
During his recent AMA session, the Cardano chief spoke about proxy keys, which will be the ultimate security and privacy upgrade to the Cardano blockchain.
The three keychains In Cardano’s security
During his recent AMA, the Cardano chief also spoke about the three keychains that would play a crucial role in Cardano’s security and privacy in near future. These three keychains include the pending key, voting key, and staking key. They will play a key role in building a secure partition between the hot and cold infrastructure on the Cardano blockchain.
Besides, the use of proxy keys in the Cardano infrastructure would help to separate crucial user information often targeted by hackers and scammers. Hoskinson said that he was among the first industry players to introduce the concept of sidechains for better security. He further added that the implementation of the same will happen sometime in 2022. Hoskinson added:
We were first the market to publish this model (side chains). That’s the power why this model is so scalable because you can just launch as many of these things as you want. It’s just the carrying capacity of the system.
It’ll have to come a little later down the roadmap. So second half of 2022, likely because there’s so much to do. But it’s definitely something that we’re looking for a protocol for that makes sense.
Hoskinson: Don’t panic over ADA) sell-offs
Cardano’s native cryptocurrency ADA has been under pressure recently amid the broader market selloff. Hoskinson asked people in a panic to “chill out” a little bit. He further stated that sell-offs have been a part relation to digital assets.
The founder also pointed out the performance of meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) which have no utility. The rather asks investors to focus on the impact of the upcoming projects.
Cardano Past and Present Challenges in the Crypto Industry
- Smart contracts and network scalability has been Cardano’s challenge.
- Despite this, Cardano (ADA) is still showing an impressive performance in the market.
Cardano (ADA) has been through a mix of positive and negative downsides since its inception. Starting from the past, it has been striving to get a smart contract for smooth platform functionality. Also, apart from this, one key thing that Cardano has faced is scalability, according to a report.
However, this makes people keep doubting how Cardano claims to be an Ethereum killer and also a third-generation blockchain. This was seen from the time that the Cardano team started to fight for smart contract acquisition to make the network stand out among the odds in terms of network scalability.
Cardano has already made a significant step forward by tackling some of its challenges. This includes the implementation of the Alonzo Hard Fork Upgrade, Basho, Mamba, and other network extensions for betterment. Seemingly, all these appear not to serve as a catalyst to solve Cardano’s underlying tragedy.
Mention to the community what are technical challenges openly but not in a sense of FUDing but rather that some solution needs to be found. This could also be a good thing because some community members in the spirit of the decentralized brain could start looking for solutions (research) or even start implementing them (development).
Nevertheless, regardless of all these, Cardano is still showing an absolute performance in the market. It keeps climbing ranks while rocking new all-time highs. At writing time, ADA price trades at $1.56 with a market capitalization of over $50 billion on Coingecko. This makes it ranks as the 6th largest cryptocurrency in terms of market cap.
Cardano (ADA) Down 50% from Peak: Possible Reasons
Largest proof-of-stake network sees its token in multi-week painful decline.
ADA, a core native asset of the newest smart contracts platform Cardano, touched $1.5 in its multi-month freefall. Here’s what makes it plummet before gaining 200% in five weeks.
ADA loses 50% since early September
On Sept. 2, 2021, the ADA price reached its all-time high at $3.10 on the eve of the activation of its smart contract functionality. This major upgrade went live as a result of Alonzo hard-fork mainnet activation in mid-September.
At the same time, its activation failed to catalyze another wave of ADA price rally: the asset entered a multi-week “bear market.” On Nov. 26, 2021, it reached the lowest level since Aug. 9.
The most obvious mid-term catalyst is the criticism of Cardano’s smart contracts performance. As covered by U.Today previously, the viability, speed and functionality of this system were attacked by both Ethereum (ETH) and Bitcoin (BTC) maximalists.
In terms of short-term bearish catalysts, the most obvious one is the delisting of Cardano’s ADA by eToro, a mainstream derivatives trading platform. eToro restricted its U.S. customers from opening positions in ADA and Tron’s Tronics (TRX) from Dec. 26, 2021.
Will ADA see another rally in 2022?
Cardano’s inventor, Charles Hoskinson, has already slammed eToro’s decision and attributed it to the lack of a global regulatory standard in the sphere of crypto and blockchain.
As U.Today reported earlier, Mr. Hoskinson is certain that 2022 will be a splendid year for his ecosystem. Speaking about its roadmap for the coming year, he called it a “living ecosystem.”
He calls Cardano’s technology unbelievable and claim
Red Alert In Crypto Space, Cardano Price Trembling Yet Remains Bullish
Crypto space witnessed a replica of a May crash but with lesser intensity. Bitcoin price is hovering between $53,800 and $54,400. However, some assets stood strong above their support levels like Ethereum & Cardano.
Despite the bearish trend prevailing in the short-term, yet the ADA price still remains bullish in the higher time frame.
Cardano price maintained a substantial downtrend ever since the beginning of the present trading day. In the daily chart, the asset has formed a double-bottom and was expected to surge high slicing through the neckline.
But the asset was rejected at the neckline in the last few hours of the last trading day. ADA price dumped nearly 15% ever since then, however, it’s also attempting to rebound.
3rd Cardano sell-off is going on since the early hours of the Asian trade. The dump dragged the price much below the 200-day MA and extended the gap between the strong resistance levels around $2.5.
A major reason for the sell-off is speculated to be the pandemic FUD circulating in space. However, the retracement is expected to be well in place as more than 70% of ADA is staked and keeping only 30% in circulation is pretty bullish for the asset.
Exactly a year ago, the Cardano price was around $0.03 and the asset was surrounded by immense FUD. However, the ADA price didn’t stop then and may not stop now also.
Collectively the asset maintains a substantial rally ever since it faced an extreme sell-off in September. Yet the strong support levels still reside around $1 and the asset is still bullish until the asset sustains above these levels.