The outlook for Cardano (ADA) in 2023 is optimistic. In the following 12 months, the Ethereum (ETH) rival may fulfil certain promises made between 2021 and 2022 but not fulfilled by the smart contract blockchain.
The emergence of natural stablecoins is one such promise. Although not novel, it is one of the top expectations of ADA investors, as a reliable asset may facilitate Cardano’s rapid expansion in decentralized finance (DeFi).
Ethereum killer investors are more enthusiastic than negative about this launch, which is expected to take place at the start of this year, despite the fact that maintaining the peg of a stablecoin is not a simple operation and was one of the primary issues encountered in 2022 by various Layer 1 projects.
On the Cardano network, two stablecoins are anticipated for the first quarter of 2023: First is the centralized stablecoin USDA, which will be backed by the U.S. dollar. To preserve parity, it will use fiat assets while continuing to enjoy Cardano’s advantages, like as network efficiency.
Djed, a token created in collaboration with Coti, is a much-anticipated stable asset. The stablecoin’s dollar peg will be maintained through Cardano’s smart contract mechanism. Djed will mine a reserve of base currencies to maintain this peg, and it will burn other stable assets and reserve currencies to control swings.
Through the Vasil hard fork in 2022, Cardano takes a significant step in scaling its network. However, past blockchains such as Bitcoin (BTC) and Ethereum have shown that a scalable network is a persistent worry for cryptocurrencies aiming for mainstream adoption.
Cardano has shown interest in future advancements in this field. The planning for Hydra, a Layer 2 scalability solution, is evidence of this. Hydra attempts to increase transaction speed through low latency and high throughput while maintaining low transfer rates.
The family’s first member is Hydra Head. It will let developers implement sophisticated and customized protocols for Cardano. According to Charles Hoskinson, this Hydra layer may also support quick completion, microtransactions, and micro-gorging.
This must be one of the most significant advancements made by the Cryptocurrency team. The whitepaper was published in March 2020, after all.
Oracles on the Cardano blockchain complete the list of anticipated features. This protocol is very crucial since it connects on-chain and off-chain data. A good example of oracle’s growth is Chainlink (LINK), which delivers this mode to smart contracts on Ethereum, allowing them to realize their full potential, which may also aid in the market’s adoption of the ADA network.