Charles Hoskinson, the founder of Cardano (ADA), explained how he would consider that Cardano reached success. In a recently uploaded YouTube video, Hoskinson talked about the future of Cardano and how he thinks that the project could be successful. Furthermore, he explained which are the main features Cardano would need in order for that to happen.
DeFi Could Mean Success for Cardano
During the YouTube conversation Mr. Hoskinson had with his followers, he stated that Cardano has truly made a difference in the cryptocurrency market. Indeed, Cardano is now the 5th largest virtual currency in the world with a market capitalization of $38 billion and a price per coin of $1.21.
Regarding Cardano’s expansion and success, Hoskinson said that he likes the DeFi platform called Kiva. This platform allows users to give out loans and borrow money. Hoskinson explained that he gives out loans through this platform, showing that it works very well and in a decentralized way.
However, he considers that Cardano would succeed when he would be able to open an application such as Kiva, lend assets and receive the funds back plus interest. One of the DeFi options could be to do a crypto swap between different coins as other projects are already doing.
About it, Hoskinson said:
“I know that Cardano has truly made a difference and changed the world if I can open up an application just like Kiva and I can have a direct relationship with someone somewhere in the world who is not doing so well and I can actually give them not as a gift, not as charity, but a loan to them and they pay me back. That to me would mean success for Cardano.“
In order for that to happen, Hoskinson explained that it is necessary to build an identity system. In addition to it, there should also be a payment system that can work all over the world. That includes places where access to the internet is limited and intermittent.
Furthermore, the identity system would give you a reputation. In this way, users would be able to know which users they can loan the funds to. In addition to it, there should also be a way to spend the funds the borrower receives. That includes creating a system of stablecoins that would work in different countries and regions.
Moreover, users should be able to receive their funds back. Not only this, but the funds they receive should also include a profit. In this way, the whole cycle would be repeated and improved over time. Other possible features would include DEXs and also oracles.
What is Cardano?
Cardano is one of the largest and most popular projects in the cryptocurrency market. It was created several years ago by Charles Hoskinson and it attracted a large number of individuals from all over the world.
This blockchain network is considered to be a next-gen project compared to Bitcoin (BTC) or Ethereum (ETH). This is due to the fact that Ethereum and Bitcoin are considered to be legacy coins. They are usually slower and their functionalities are limited. Moreover, they also have to face many challenges that could make it more difficult for these coins to continue growing.
Instead, Cardano is a relatively new digital asset that solves some of the problems faced by Ethereum. In this way, once its mainnet is launched with all its features, it could be able to process a large number of transactions per seconds, run smart contracts and allow decentralized applications (dApps) and decentralized finance (DeFi) projects to have an efficient network were to operate.
What is Decentralized Finance (DeFi)?
Decentralized finance (DeFi) is one of the latest trends in the cryptocurrency market. Individuals are able to get access to hundreds of projects that offer a wide range of services to their clients. These projects are mostly running right now on Ethereum, but also many others on top of the Binance Smart Chain (BSC).
However, we care about Cardano and how this blockchain could become one of the most efficient networks to run DeFi apps. One of the main characteristics of DeFi projects is that they require processing several transactions per second.
This is because users engage with smart contracts that allow them to do many things. For example, individuals can already borrow funds, lend funds, deposit their tokens in pools or do Liquidity Mining. There are many solutions provided by the DeFi market and this could only grow in the future.
Ethereum and Binance Smart Chain are not able to handle the whole requirements of the community. This is why a transaction on the Ethereum network costs more than $20 in normal conditions (nowadays). Cardano could eventually change that and make the whole DeFi market much more efficient in the coming years.
It is worth pointing out that this would highly depend on how Cardano behaves in the coming months and years. We are in a bull market and Cardano could capitalize on the current growth in attracting new users and developers to its network.