Strategist and trader Andre Jikh predicts that Cardano (ADA) will rise in the long term as he analyzes Cardano’s future price movements.
In his new video, Andrei Jikh explained to his 1.34 million subscribers the reasons behind Cardano’s popularity and its competition with Ethereum to be the best platform for contracts. clever.
The first problem with Ethereum on Jikh’s list is the high gas fees.
“Ethereum is too expensive to use, imagine a manned bus, anyone can enter but every interaction from opening the door, getting in, how far you go and even getting out of the car costs one. The gas charge is called GWei, a small unit of Ethereum. Can you imagine creating an application, testing the network or creating a business on Ethereum, or even the smallest things become extremely expensive. “
Jikh pointed out that Cardano solved this problem by creating with their proof-of-stake blockchain instead of using proof-of-work.
Ethereum’s second problem is scalability. Trader explains that scaling is how cryptocurrencies compete with Visa, Mastercard, and AMEX as a payment layer.
“Most cryptocurrencies have a limit on the number of transactions they can process. For example, on Bitcoin, we are doing an average of about 2 transactions per second. On Ethereum, we are doing on average more than 20 transactions per second. Not bad, but Visa is capable of processing more than 65,000 transactions per second.“
“The reason credit card companies can do this is because they run on their own database that allows them to play by their own rules. The truth is, decentralization comes with cybersecurity. That is the basis of all blockchains and extensions – cryptocurrencies.”
Cardano comes into the game and provides a solution to this problem by decentralizing with proof-of-stake.
“It’s interesting that the people verifying transactions are ADA holders and they participate in what is called the democratized voting system and that’s how they verify transactions.”
The final issue on Jikh’s list is interoperability, which is “the pursuit of creating some common language between blockchains,” said the trader.
In this regard, Cardano is trying to solve it by learning what Amazon Web Services (AWS) is doing.
“The best-practice example is Amazon’s AWS, which is a technology that allows companies outside of Amazon to integrate into itself, allowing them to scale more easily and faster and without destruction. Amazon’s own security network ”.
KOL Jikh explains:
“That’s what Cardano is trying to do with things like sidechains and other concepts so it can help other cryptocurrencies integrate the technology and help them scale and grow. Cardano wants to be a good teammate. And that’s why I like Cardano ”.