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All Eyes on Cardano ADA After Coinbase Stellar XLM Addition

Following yesterday’s sudden addition of Stellar XLM to U.S.-based cryptocurrency exchange Coinbase, investor interest has quickly shifted to Cardano ADA.

While the entire industry is experiencing a bump in price, with Bitcoin making another run at $4000 for the third time in 2019, eleventh-largest coin by market capitalization Cardano has managed to outpace the rest of the market.

Some of the ADA price action is being driven by a buoying of the rest of the market, with most coins experiencing a double-digit appreciation since the start of the year–a welcome change from 2018’s endless downward spiral. However, many investors are also piling into Cardano from FOMO and anticipation of another Coinbase listing, with ADA being the last of a long-awaited group to be added to the exchange.

In July 2018, Coinbase announced exploration into five new cryptocurrencies for listing, addressing one of its most common customer complaints that the exchange’s offering was too limited. Of the five coins that were originally outlined in that update, Cardano is the only coin to not yet be listed.

Despite, at the time, Stellar XLM and Cardano ADA being the most popular and heavily favored choices for Coinbase to offer investors, it’s surprising that they were the last two coins to be considered–with ADA still waiting for integration. However, both coins offer significant advantages to both Coinbase users and the industry of crypto. Stellar has been at the forefront of non-profit cryptocurrency engagement, and is targeting unbanked populations in developing countries.

Cardano, similar to Ethereum, is looking to build a network of blockchain use that extends beyond monetary transfers. With the guidance of IOHK CEO and former ETH co-founder Charles Hoskinson, ADA has managed to build a fair amount of interest in the 1.5 years it has been available on the open market.

However, the current rush of ADA investors would be wise to consider the position of Coinbase. While it does appear that the exchange is set on increasing its cryptocurrency selection at an accelerated pace relative to past engagement, there is no guarantee that Cardano will be coming to Coinbase any time soon. Investors are basing their decision on the fact that XLM followed XRP’s listing by a few weeks, as opposed to the months that have traditionally passed between Coinbase listings.

Despite Coinbase announcing in December their intention to add hundreds of new currencies–with XRP being listed as one of the possible coins–some community members believe that Ripple paid for the coin to be added to the exchange. For one, the timing was convenient for both Ripple and XRP, giving a positive boost to the currency in the wake of J.P. Morgan’s JPM Coin announcement. And, as other analysts have pointed out, XRP violates Coinbase’s guidelines for listing new currencies by way of Ripple’s majority stake in the coin.

That being said, investors are attempting to make the most out of the Coinbase FOMO and new coin excitement, given the waning we have seen over the last year in the exchange’s influence on cryptocurrency prices.

Title image courtesy of beatingbetting.co.uk

The post All Eyes on Cardano ADA After Coinbase Stellar XLM Addition appeared first on Ethereum World News.

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How Cardano (ADA) Plans to Solve Proof of Stake

Cardano (ADA)–Coming off the positive news of a potential partnership with Coinbase, Cardano’s ADA has benefited from a pump in price over the weekend.  Investors and enthusiasts alike seek to reverse the losses of 2018’s bear cycle, both in anticipation of the buying power of Coinbase’s 13 million+ customers and also in appreciation for what the IOHK team has been able to accomplish in advancing  their cryptocurrency.

While the appreciation in price has been a welcome change for investors suffering through 90% loss in value since January’s all-time high (a figure in-step with most market losses), the team behind Cardano is more excited for how their innovative protocol will bring change to the landscape of Proof of Stake. Named Ouroboros, the Cardano protocol seeks to reinvent Proof of Stake blockchain verifying, while also ensuring the security of user funds.

In April, IOHK Founder and CEO (the company behind Cardano), tweeted a research paper lauding the improvements of his company on bringing the level of sophistication of PoS to the more mature field of Proof of Work (what Bitcoin’s blockchain functions on).

As Hoskinson points out in a following tweet, one of the immediate benefits of Proof of Stake over its competition PoW is the fractional amount of computing power and electricity required to secure the blockchain. While Bitcoin and other PoW currencies continue to grab headlines for their substantial electricity drain by miners, Cardano is looking to offer efficiency in addition to security,

The underlying idea of PoS is that users vote or “stake” with their coins on the network, thereby accruing interest–in the form of freshly minted, distributed tokens at regular intervals–for their participation. The protocol incentivizes a cryptocurrency userbase to be active on the network, helping with the facilitation of transactions and securing the blockchain, while not requiring the processor-draining power of PoW. Given the looming reality of a global population invested in crypto, PoS is being examined as a more sustainable route to securing blockchains. As the aforementioned research paper states,

Proof-of-stake-based (in short, PoS-based) blockchains aim to overcome scalability, efficiency, and composability limitations of the proof-of-work paradigm, which underlies the security of several mainstream cryptocurrencies including Bitcoin.

However, until this point, Proof of Stake has remained a largely unproven protocol, at least in comparison to PoW. Given the market share and length of the time that Bitcoin has been functioning as a currency, PoW has had the time to mature in both technological development, as well as being proven secure for blockchain transactions and consensus. PoS lacks the same level of trialing, but IOHK believes they have silenced the doubts related to staking through Ouroboros. Speaking to CoinDesk, IOHK Chief Scientist behind Ouroboros Aggelos Kiayias had this to say of his protocol,

“Contrary to [other proof-of-stake protocols], we developed Ouroboros together with a formal proof of security that the protocol indeed captures the security properties of a robust transaction ledger like bitcoin.”

The key to both IOHK and the development of Cardano has been on the emphasis of scientific rigor and putting the concepts and technology through the process of peer-reviewing. While this has given the Cardano team an impressive collection of academics and industry leading minds to work with, it also presents the company in a more vetted light–which stands in stark contrast to much of the industry. Hoskinson’s regular engagement with the ADA community, in addition to big-name third parties like Google, is a welcome touch. But the currency’s main draw continues to be in the belief that the best technology, backed by the best team of developers will rise to the top. Time will tell how Ouroboros and the Proof of Stake can change the landscape of cryptocurrency.

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