The Web3 ecosystem focuses on decentralization, trustlessness, artificial intelligence, and interoperability. These features will improve engagement and enhance privacy in a democratized communication environment, shape-shifting the internet we know today.
Adopting these technologies is a slow process, but solutions like cryptocurrency and blockchain push it forward. For example, businesses use blockchains’ most advanced Web3 applications, smart contracts, whose use cases include automatically enforcing agreements when predefined rules are met from the written code.
Ethereum is one of the most popular, and its smart contract functions guide future solutions like Cardano. The proof-of-stake blockchain platform is considered an Ethereum killer due to its fast transactions and affordable fees. However, it’s mostly popular for evidence-based methods of contribution to the crypto ecosystem. ADA is the blockchain’s native token, and holders can safeguard it in several of Cardano’s digital wallets. The project’s growing market relevance contributes to insight into the latest ADA price prediction, especially with its increasing market capitalization rates.
With value from both the cryptocurrency and the blockchain, Cardano becomes an essential tool for Web3 adoption that companies can take advantage of as early competitors ― let’s see how.
How can Cardano address real-world challenges?
The business sector struggles daily to ensure the safety of data, especially in light of increasing cybersecurity attacks. Since organizations collect data from different sources, tracking and disclosing their usage accurately has become rather difficult.
Companies can use blockchain technology to enhance their transparency. Cardano, for example,
is a leader in traceability, allowing the creation of transparent and immutable data records. This means no party can change or alter the blockchain ledger, as the cryptographic principle records information and keeps it as it is.
Cardano is also popular for its digital identity management projects, which allow people to control their digital identities. In the real world, identity systems are prone to breaches due to centralization. What Cardano does is employ tamper-proof and easily verifiable credentials, reducing the chances of fraud while users can benefit from privacy.
Finally, Cardano mitigates for sustainability. For example, it aids agriculture so the journey of goods can be tracked through the ledger, enhancing the efficiency of the supply chain. At the same time, this feature builds trust between farmers, transporters, and retailers.
How does Cardano contribute to interoperability?
Interoperability is another important component of the Web3 ecosystem, along with decentralization. The Cardano Foundation prioritizes research to improve it, but it has already implemented the Inter-Blockchain Communication Protocol (IBC).
The project focuses on building a bridge between Cardano and the Cosmos SDK side chains, whose ecosystems include other 115 interconnected blockchains. The architecture will ensure modularity and scalability so developers can benefit from all the functionalities and blockchain advancements.
The IBM project also targets Cardano with the Ethereum Virtual Machine (EVM), so the latter’s decentralized applications could be deployed on Cardano sidechains. Both solutions can create one of the most secure and scalable decentralized environments.
Sidechains can benefit enterprises through:
- Flexibility, so they can meet specific business needs through rapid blockchain tailoring;
- Scalability, so companies can support a growing number of transactions across multiple platforms;
- Cross-platform innovation through taking advantage of different blockchain features;
- Optimized security through the Ouroboros proof-of-stake protocol;
How will Cardano integrate artificial intelligence?
AI is on everyone’s lips, and companies are trying to approach it and leverage it entirely. However, its newness makes it difficult for enterprises to stabilize AI integration without guidelines. Cardano has a plan in this direction: integrate large language models (LLM) into the layer-2 ecosystem, meaning the start of AI-powered dApps and smart contracts.
As the demand for Cardano ecosystem products increases, the growing ADA price will attract investors and developers to fund further AI projects. Cardano’s founder, Charles Hoskinson, suggested the LLM deployment will enter the exploration phase after the Midnight protocol finalizes its collaborative environment settlement.
Recently, Cardano took a small step toward AI integration by partnering with Check Point, a high-authority cybersecurity brand. The collaboration will focus on improving blockchain’s security against threats through AI-driven defense mechanisms. The expertise on threat intelligence from Check Point and the blockchain infrastructure from Cardano will reshape digital ledger security.
How does Cardano achieve trustlessness?
In decentralized ecosystems, there’s no need for third parties to provide security and safety, therefore blockchains require developing their own trust architectures. Cardano, for example, employs censorship-resistant and decentralized security protocols that make transactions non-reversible.
But there’s more to it. Cardano’s multisig transactions come from wallets where multiple accounts or private keys efficiently secure the funds. This function helps users from decentralized ecosystems swap assertions in a trustless way, at low costs and without intermediaries.
On Cardano, users have several transaction services to benefit from:
- Atomic Swap is an open-source dApp for developers to build multisig transactions;
- Trading Tent supports creating password-protected Tents (NFTs);
Finally, Cardano contributes to trustlessness through its Zero-Knowledge technology. For example, Zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) allow proofs to be verified quickly, supporting scalability solutions. On the other hand, Zk-STARKs (Zero-Knowledge Scaleable Transparent Arguments of Knowledge) ensure transparent proofs free of trusted setups.
Navigating challenges on Cardano
While Cardano continuously invests in innovation and strives to make Web3 contributions, the blockchain has yet to become strong enough. While it has an impressive market capitalization, the project lacks usage and liquidity based on DeFi technology.
At the same time, Cardano should generate more fees on the network. Currently, the rates show us that users are not willing to pay too much or too often to interact with the chain, meaning the network might experience economic hurdles.
Do you think Cardano will become a leader in the Web3 world?
Cardano is one of the most innovative blockchains on the market, with its research-driven culture placing it as a trusted project. Cardano aims to push for Web3 adoption by improving its main features ―decentralization, interoperability, artificial intelligence, and trustlessness. Recent collaborations have opened the path to broader perspectives on Cardano’s use cases, while its increasing market capitalization boosts ADA prices and encourages investors to interact with the cryptocurrency.