ChatGPT predicts 2024 will see Cardano hitting $10.
Even so, Cardano’s latest uptrend has practically reversed all of its losses from earlier in the year. This indicates an astounding 150% rise in value for ADA in 2023, with a majority of the gains happening in the last six months. This positive price performance is fueling the present expansion of its decentralized finance (DeFi) ecosystem.
Hoskinson defends Cardano
Charles Hoskinson, the founder of the Cardano blockchain recently took a firm stand against critics who questioned the protocol’s capability to handle full blocks. He addressed the network’s critics in one of his most recent posts on the X app, praising the network’s scalability and comparing its victory to that of flagship cryptocurrency Bitcoin (BTC).
Hoskinson began by recalling a period when there were worries about Cardano’s blocks being excessively full, as well as a ghost chain narrative claiming that the blockchain had no use.
He went on to highlight Cardano’s outstanding progress, noting that the network is not only capable of handling current demands but also has significant scope for optimisation and scalability. Hoskinson’s optimism is reinforced by tangible results and data that illustrate Cardano’s progress despite hardships.
Now, let us dive right into the history of the cryptocurrency that remains one of the most popular proof-of-stake (PoS) based projects.
Cardano—a PoS warrior
After Ethereum [ETH] co-founder Charles Hoskinson left the project due to disagreements, he teamed up with another wizard who used to work at Ethereum, Jeremy Wood.
The duo began working on the development of the Cardano project in 2015. The project finally got launched two years later in 2017.
The Cardano blockchain uses a proof-of-stake (PoS) consensus mechanism. Its PoS protocol is called Ouroboros, which can run both permission-less and permissioned blockchains.
Hoskinson is very appreciative of Ouroboros due to its energy efficiency.
PoS is frequently contrasted with proof-of-work (PoW) as both consensus mechanisms are behind most of the leading blockchain networks. It is critical at this juncture that we understand what both these mechanisms are and how they differ.
A consensus mechanism consists of the rules and protocols that govern how a blockchain network reaches an agreement on its state.
PoW requires the utilization of computational power by miners to solve challenging mathematical riddles and validate transactions. Instead of requiring miners to solve problems, PoS requires validators to stake some of their coins as collateral.
PoS is considered more scalable and energy-efficient than PoW. The Cardano network was one of the early adopters of the PoS mechanism.
A long series of updates
In the beginning, the Byron Era laid the groundwork for Cardano. It established the mainnet and introduced other foundational tools. A federated network, dominated by Input Output Global and Emurgo, marked the inception.
The Shelley Era witnessed a hard fork in July 2020, with Cardano transitioning from centralized Byron rules to a decentralized setup.
The community’s stake pool operators took the reins, showcasing Cardano’s commitment to decentralization.
The following Goguen Era was unveiled progressively. It brought forth features such as Smart Contracts and dApps. The Goguen Era took place in three steps: Allegra, Mary, and Alonzo eras.
The Allegra Era introduced token locking support. The Mary Era pioneered native tokens and multi-asset functionality. The Alonzo Era enabled smart contract support, solidifying Cardano as a versatile platform for diverse applications.
The subsequent Basho Era focused on scaling and optimization. Innovations included sidechains for enhanced network capacity and the introduction of parallel accounting styles, broadening use cases, and interoperability.
The latest Voltaire Era is focused on decentralized governance, empowering the Cardano community with voting rights on network evolution, technical enhancements, and funding decisions
What’s this buzz around ChatGPT?
Besides DeFi and crypto, another major development that has grabbed public attention is ChatGPT. It is an OpenAI-developed large-scale artificial intelligence (AI) language model trained on an enormous amount of data.
This allows the bot to understand and generate responses to complex queries from the user.
It is a language model whose primary purpose is to generate responses like a human. The bot can make logical inferences if presented with data from the indicators, and can even analyze multiple indicators to make an overall inference.
Although it tries to be accurate, the user must verify the information it generates, as the bot isn’t 100% accurate. It merely mimics a human.
This is an important distinction, as it forces the prerogative of the user to fact-check and verify what ChatGPT says.
Can ChatGPT help me find some answers about Cardano and ADA?
I decided to test if ChatGPT can answer some of my queries regarding the Cardano network and its native token, ADA.
At first, I asked it about the impact of the Ripple [XRP]-SEC verdict on the status of ADA (Cardano’s native token) as a security.
The court had given a ruling in July that while the institutional sale of XRP tokens constituted a sale of securities, the programmatic sale of those tokens to retail investors didn’t meet the criteria of being a security agreement.
ChatGPT said its limited knowledge until January 2022 made it unaware of a definitive verdict on the Ripple case.
It was at this point that I decided to jailbreak it using the DAN (Do Anything Now) prompt.
Conclusion
The DeFi ecosystem’s growth can be credited to recent protocols inside the Cardano ecosystem, most notably Indigo, a decentralized synthetic asset protocol with a TVL of $102.72 million.
Liqwid, a decentralized lending protocol, and Minswap, a decentralized exchange, also contributed, with TVLs of $47.86 million and $94.67 million, respectively.
These developments demonstrate the ecosystem’s efficacy in generating growth and points toward Cardano’s potential to continue its momentum.
Our AI companion ChatGPT is also very optimistic about Cardano’s fortunes in 2024 and predicts $10 is in reach. With the larger market currently on an upswing, anything is conceivable on the price charts for ADA.
