Third-generation blockchain Cardano has proved a champion of resilience in the Layer-1 network space.
When it comes to making changes to a blockchain’s programming so more transactions can be processed, few are more capable than this decentralised platform.
Cardano operates on a traditional Proof of Stake consensus model but its peer-reviewed research approach has made it a chain many expect to go far in a notoriously volatile market.
It falls into the “third generation” category since it was developed to improve on the scalability, interoperability and sustainability of previous generations.
Cardano’s reputation for resilience is built on the trust it has earned from investors.
Some critics have labelled it “too academic” due to Ouroboros [https://cardano.org/ouroboros/], its consensus family, being intensely scrutinised across multiple white papers.
However, its cryptographic research foundation endears it to regulators and institutions which perceive it as being less risky.
New horizons
Ironically, Cardano’s analytical positioning has given it the perfect base from which to explore more adventurous undertakings.
One of the most exciting developments is the launch of a physical Visa card that enables people to spend ADA, Cardano’s native coin.
The “Cardano Card”, as it has been dubbed, is born out of a partnership between Emurgo, Cardano’s business arm, and digital payments platform Wirex.
Wirex caters to more than six million customers globally.
Emurgo Group CEO Phillip Pon says the collaboration provides the link between real-world utility and onchain utility.
He adds that Cardano’s visibility in the banking world will also increase significantly.
Another notable development is integration of AI into the blockchain.
It is using Coinbase’s x402 payment standard for this purpose.
The move is designed to allow “AI agents”, autonomous programs that perform tasks on behalf of a user, to make onchain payments with ADA and Cardano’s USDM stablecoin.
X402 has become synonymous with seamless onchain payments made through traditional web requests.
There is no centralised oversight as bots manage the transactions.
The effect of this integration is that agents may be able to pay for decentralised finance (DeFi) transactions.
Staking and lending could even occur.
Perfect alignment
Arguably the biggest point in Cardano’s favour is that its approach resonates with organs of state.
As a model that is self-custodied and established on liquid staking, it aligns well with the U.S. Treasury and Internal Revenue Service’s (IRS) updated liquidity requirements for exchange-traded products in the crypto market.
The institutions now demand that digital assets are transferred within one business day.
Unlike other PoS networks, Cardano users can delegate ADA without locking tokens, meaning that transfers can be made within the Treasury and IRS’s specified timeframe.
This bodes very well for Cardano price USD.
Institutional backing is always a boon for cryptocurrencies and Cardano appears to be just the type of offering they want as the financial landscape shifts to a tokenised future.
With companies like $50 billion asset manager Grayscale Investments expanding exposure to ADA, the blockchain now enjoys the support of both the private and public sectors.
