Unlike most cryptocurrency ratings published online, the Wise Crypto ratings have nothing to do with the current or future price of the currency. Whether or not a crypto is over or undervalued or priced today is completely irrelevant. Our research focuses on the sustainability of each project, the security, the use case, decentralisation, environmental impact, the technology, the scalability and the developers and teams behind the projects.
Cardano (ADA) Rating = 485/1000
Technology (0 to 300) = 155
- Speed (0 to 50) = 10
Cardano has an average transaction speed of approximately five minutes. All nodes within its network can accept transactions and verify them. Cardano’s transaction speed is much slower when compared to XRP, which can process much faster transactions at 1 to 3 seconds.
Charles Hoskinson claimed they can currently handle between 50 and 250 transactions per second. Nonetheless, Cardano’s infrastructure is still in the development process; hence its community can expect significantly more transactions per second when fully developed.
- Cost (0 to 50) = 30
Cardano charges a minimum transaction cost of 0.155381 ADA and an additional 0.000043946 ADA per byte of transaction size. For example, a transaction of 200 bytes will cost 0.1641702 ADA, which is relatively low at todays prices.
- Scalability (0 to 50) = 35
Cardano features a unique consensus POS algorithm called Ouroboros. This algorithm validates transactions without high-energy costs to elect a consensus of nodes. The nodes are then used to run protocols that increase Cardano’s ability to accommodate the needs of large infrastructure providers like Facebook and Google. Cardano plan to add side chains in the future is estimated to enable Cardano to handle a staggering 5000 TPS, which is impressive and higher than IOTA’s. Cardano is also unique because it allows for future improvements without the need to fork.
- Reliability (0 to 50) = 25
Cardano uses smart contracts, which provide users with safety, scalability, and flexibility. Cardano also integrates a wide range of cryptocurrencies without using the third party to promote transparency and assure privacy and regulation. ADA uses a constant parameter that prevents attacks; a dummy transaction cost enough to be unprofitable to an attacker trying to generate thousands of them. It is far too early to tell how reliable this all is in practice though.
- Environmental Impact (0 to 50) = 45
Cardano Proof- Of-Stake (PoS) algorithm is much more energy-efficient than Proof-Of-Work (PoW) that is used by bitcoin. PoS saves more energy than PoW, which uses high electricity consumption mining rigs to crack heavy computation problems. Instead, PoS elect a node to generate blocks that represent stakes. PoS will eventually replace PoW, and Cardano has set the platform for this revolution.
- Decentralization (0 to 50) = 10
Cardano is built on a fully decentralizable blockchain network that has a multi-asset ledger and verifiable smart contracts. The DApp platform has a large-scale futuristic mission to accommodate DApps that will underpin the economic future. Cardano remains very much a work in progress however so we shall have to wait a bit longer for full decentralization.
Security (-250 to 0) = -50
- Reorg, 51% & Brute Force Attack (100 to 0) = -5
2.5 million Cardano ADA worth $233,000 was announced stolen from Bitrue Cryptocurrency exchange on July 27, 2019, by hackers who exploited a vulnerability risk in Bitrue’s Risk Control Team. Stolen funds were transferred to private wallets and multiple exchange platforms. This might show that Cardano’s most secure wallet is compromised when Cardano is listed on an external exchange.
However there are heavy questions raised about the hack being a possible inside job with the exchange attempting an exit scam. Since then though Bitrue were quick to downplay these accusations and have enlisted (paid?) a good number of high profile crypto Twitter influencers to shill the exchange as one of the best.
Due to the exchange being admittedly at fault for the hack (by mistake or by crook it matters not) we cannot punish Cardano for this hack in our ratings.
- Potential for Being Banned (-100 to 0) = -15
Cardano project faces minimal possibilities of being banned as it has abided by all the set regulations within the cryptocurrency sector. Cardano projection shows it is the future of efficient crypto POS mining practices.
- Network Vulnerabilities (-50 to 0) = -30
Cardano uses proof of stake (PoS) consensus and therefore susceptible to some network vulnerabilities including spent stake attack and fake stake attacks, among others. These vulnerabilities have affected the Cardano’s network and provide attackers with a meager amount of stake to crash any of the network nodes running in the corresponding software.
Use Case (0 to 500) = 280
- Initial Main Use Case (0 to 100) = 40
Apart from ADA, which is used as a digital currency. Cardano enables developers to build Dapps in common programming language which is scalable to millions of people with the hydra sidechain release.
Cardano was launched to provide near-instant and free transactions – allow users to send and receive funds, create smart contracts, and build decentralized applications(dApps). Currently, however, Cardano’s primary use case is as a cryptocurrency, ADA which can be used to send and receive digital funds. ADA has a market cap of $1.5 billion, and it’s the tenth-most valuable cryptocurrency (at the time of writing).
- Mainnet Live (0 to 200) = 200
Cardano went Mainnet live in 2015 claiming to be a third-generation cryptocurrency. Unlike other cryptocurrencies which “fork” the original code of a different blockchain, Cardano development team built the network’s protocol from scratch. he programming language that supports the blockchain is called “Haskell,” and it is based on an advanced form of mathematics.
- Additional Use Cases (0 to 100) = 20
The Atala framework (detailed below).
Crypto casinos are a valid, legitimate and active use case: there are currently no Cardano casinos or ADA casinos.
- Additional Working Products (0 to 100) = 20
Cardano launched an enterprise blockchain framework that aims to provide financial services to billions of people. The framework is known as Atala and provides financial solutions for companies, developers, and governments looking to implement new products.
Core Team, Partnerships & Developers (0 to 200) = 100
- Core Team & Developers (0 to 100) = 50
Cardano team consists of founders, renowned and experienced software developers from the three main developer institutions involved in Cardano project. They include Charles Hoskinson, Prof Philip Walder, Dmytro Kiadalov, Maria Rodinko, Duncan Coutts, and Richard Wild. The Cardano team have a very good reputation within the industry.
- Partnerships (0 to 100) = 50
Cardano Foundation oversees and supervises Cardano development and ecosystem, in partnership with the other two major partners, Emurgo and IOHX. IOHX takes care of research, design, and building of Cardano ecosystem, while Emurgo handles the expansion of Cardano ecosystem through commercial ventures. Emurgo are together with Ripple and NEM a part of the Blockchain for Europe partnership and any endorsement from Ripple goes a long way.
In September 2019 Cardano was announced as the official blockchain for sportswear giant New Balance to track and prevent counterfitting.
Visit the following page for an overview of all the Wise Crypto Ratings.