- After multiple and lengthy delays, Cardano plans to deliver Shelley on July 29.
- Shelley alone is not going to fix all of Cardano’s issues.
- The upcoming staking rewards are subpar compared to some DeFi lending, so it’s not a sustainable advantage for Cardano in the long term.
- Cardano’s ecosystem is tiny compared to the competition, and its growth is hindered by the absence of smart-contracts.
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Like its competitors, Cardano has been active with updates in 2020. However, they may not be enough to stop the project from falling behind. Hence, ADA holders may experience another disappointment once the hype dies off.
Layer 1 Platforms Are Waking Up
The IEO craze of 2019 brought exchanges into the crypto spotlight. The reputation of a particular exchange meant more than the technological features of projects it promoted. A Binance-hosted IEO, for instance, would perform merely due to the platform’s clout.
In 2020, technology has recaptured headlines.
Layer 1 solutions represented by Ethereum and its “killers” are waking up. Ethereum 2.0 is looming, while projects like TRON are making notable progress on their base-layer solutions.
The blockchain space is still young and compared to traditional equities relatively small.
As a result, no platform has gained sufficient network effects to build a moat yet. But another battle between Layer 1 solutions is brewing. With a pipeline chock full of updates, Cardano is set to join the frontlines of the platform wars.
The Cardano Approach
Cardano is frequently criticized for its slow progress. The team’s primary point of defense is that they choose to build a platform that’s reliable and secure from the start instead of “going fast and breaking things.”
The platform’s full decentralization phase, Shelley, adding more than a year to the Cardano roadmap. However, the team has been in touch with the community, assuring that the necessary work on it was being done. Now, the long wait is soon to be over.
From spring 2020, Cardano resumed updating its transition to Shelley. At the end of March, the team announced the Byron reboot, which brought crucial functionality to the network’s nodes. The reboot was followed by the launch of Shelley Testnet in May, fueling even more optimism.
During July 2-3, Cardano conducted a virtual conference, where Charles Hoskinson reflected on the work done and the future of the network.
The most important takeaway: Shelly is scheduled to launch on July 29.
In Hoskinson’s view, lengthy protocol development is justified by supercharged growth once all the features are tested and rolled out. In reality, Cardano still may run into roadblocks, even if the rollout is flawless.
We’ve Been There Before
Although Cardano is gaining momentum, this needs to be taken with caution. Shelley was announced long before 2020, and delays burned traders.
Shelley’s release was initially scheduled for Q2-Q3, 2018. This makes up for…