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Cardano Coin SWOT Review | Everything You Need To Know

By January 29, 2018 April 9th, 2019 3 Comments

Here at Cryptocurrency Australia, we do our best to give the crypto crowd as much information as possible. That way, people have the resources to successfully navigate the cryptocurrency space. We know that a detailed coin review is an important step in familiarising oneself with digital assets. That’s why we prepared a Cardano Coin SWOT Review. It’s a great way to get an overall picture of this blockchain project.

The SWOT acronym stands for 4 specific points of analysis:  Strengths, Weaknesses, Opportunities, and Threats. But before we get into the nitty gritty of our Cardano SWOT analysis, let’s start with a brief overview of the project itself to get some background.

What is Cardano?

Cardano is a layered, public blockchain platform for decentralized applications and smart contracts. The project targets individuals, governments and organisations, with a team of academics and engineers behind it. Cardano is targeting the financial services industry and as such, privacy and regulatory approval have been in mind from the very start.

The cryptocurrency fueling the Cardano blockchain project is ADA, which at this time of writing has a marketcap of $2,208,698,123 USD.

Image of Cardano coinmarketcap and volume as part of introduction to Cardano SWOT Analysis

The Cardano blockchain platform involves multiple aspects that are under development, but it’s 3 main features are as follows:

Image of Cardano main website page showing the three main features for Cardano coin swot review

  1. Cardano is a blockchain platform stemming from a scientific philosophy.
  2. Ouroboros is the “first provably secure proof of stake algorithm”, and is peer reviewed.
  3. Cardano features its own wallet, Daedalus.

First, I’ll give you the general feeling I got from doing this Cardano Coin SWOT Review. On the whole, my first impression of Cardano is that the entire operation is highly professional, well presented, and well thought out. They already demonstrate significant value in the form of wallets, information, debit cards, and future developments. Another plus is that they began blockchain development at a very early stage in the crypto market. To me, the fact that they’ve been around since 2015 gives a high credibility factor.

Now that we’ve introduced the Cardano project and the ADA cryptocurrency, let’s delve right into the Cardano SWOT Analysis. That way, you get a nice close look at how Cardano is shaping up.

Cardano Coin Swot Review

Strengths:

The Cardano project appears to be a very advanced project, with many apparent strengths, including:

  • To begin with, Cardano is a platform for others to build DApps upon using smart contracts, like many other successful cryptocurrencies, including Ethereum, NEO, EOS, and others.
  • Cardano uses a public blockchain, which has its own Block Explorer.
  • Abundant resources and information are available regarding every small detail pertaining to the platform. Thus, manifesting in a very transparent way
  • The Cardano team built their platform with social and community engagement in mind. They do this by analysing the socio-economic aspect of other cryptocurrencies. Similar to Dash, Cardano has included a decentralized trust where users can vote by a ballot system where funds are used.
  • Cardano is also striving for a blockchain-based voting system for soft and hard forks, attempting to avoid issues associated with past Bitcoin forks.
  • They have built a system that ensures changes and upgrades to the protocol go through a peer review process.
  • Also, Cardano will use a Proof of Stake system (PoS) called ‘Ouroboros’, a new and secure protocol released in a whitepaper in August 2017. You may have heard the suggestion that this whitepaper has achieved equivalent peer review to that of the Bitcoin whitepaper. Additionally, it’s been accepted by Crypto 2017, an international cryptography conference.
  • Cardano Settlement Layer

The whitepaper outlines a clear value proposition called the Cardano Settlement Layer. The value comes from two sets of scripting languages, one to move value and the other to enhance overlay protocol support. They also provide support for other sides chains as well as for multiple signature types, including quantum resistant signatures. With all this plus support for multiple user issues assets, Cardano achieves scalability.

“The Cardano SL (or Cardano Settlement Layer) is a cryptographic currency designed and developed by IOHK in conjunction with the University of Edinburgh, the University of Athens and the University of Connecticut. Cardano SL is based on the Haskell implementation of the white paper “Ouroboros: A Provably Secure Proof of Stake Blockchain Protocol” by Aggelos Kiayias, Alexander Russell, Bernardo David and Roman Oliynykov.” – 

  • The Daedalus Wallet

With its own specific wallet, called Daedalus, Cardano allows for the ADA currency to be live and operational. On top of that, the wallet has ambitious plans to become a universal wallet with an in-built app store. As an added benefit, it will allow third-party developers to build innovative applications for the wallet. Just the wallet alone has its own, 8-person development team.

  • To offer added value, Cardano provides their own debit card.
  • Showing relatively high numbers, Cardano’s social media checks in as strong. Twitter has nearly 160K followers, Reddit 68.8K readers. Comparing to NEO which has 137K followers, 41.4K reader. Ethereum 212K followers, 173K readers.
  • Finally, the Cardano Foundation contains 3 key stakeholders, being Cardano, Input Output and Emurgo. Input Output represents the contractors for designing, building and maintaining Cardano through to 2020. The team, primarily coming from Input Output, has as its leads Charles Hoskinson and Jeremy Wood as CEO and CSO.

Weaknesses

  • Possibly, the team is ahead of their time culturally, maybe even technologically.
  • The platform started later. Basically, they missed the first mover advantage that Ethereum had, or even that of NEO.
  • Lastly, with a huge token supply of 45 Billion tokens, supply and demand economics are significantly in the favour of oversupply.

Opportunities

  • To start with, Cardano can bring credibility and industry level high standards to cryptocurrencies.
  • Additionally, they have positioned the project to be the main DApp platform for governments and the financial services industry.
  • Because the team is implementing the most efficient PoS algorithm, they set the standard for new Blockchain projects.
  • Lastly, Cardano develops standards for blockchain architecture.

Threats

  • First of all, Ethereum, which is a Blockchain Protocol with smart contracts, is also backed by the Ethereum Enterprise Alliance.
  • Additionally, EOS, which is another Blockchain protocol, will also have smart contracts and DApps.
  • To conclude, NEO and Lisk, which again are Blockchain protocols, also enable smart contracts and DApps development on their platforms.

Summary of our Cardano Coin Swot Review

Overall, this Cardano SWOT analysis points to a strong platform using development that adheres to sound engineering and scientific principles. Such characteristics clearly show throughout the documentation and in the presentation of the available content. With Charles Hoskinson leading the project, there is little doubt Cardano will be a major contender among other protocols in the months and years to come.

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Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators’ websites before making any decision. Cryptocurrency Australia Media, or the author, may have holdings in the cryptocurrencies discussed.

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