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<h1>Cardano Is Priming Itself</h1>

Cardano (ADA) has been in the headlines a lot and most recently this weekend as it held a big summit filled with announcements.

But that's just it... It's announcements and not anything yet active and truly being used yet. That's one of the biggest core differences between ADA and other systems like Polygon, Polkadot etc. They already have working NFTs, DeFi platforms etc while Cardano still remains in the background of possible projects.

### The New DeFi Stablecoin

One of the most recent updates from them was a new stablecoin they are working on that will be used for DeFi operations. The token well be called Djed and will be launched with their payment gateway provider Coti.

I'll be honest with you simply hearing stablecoin runs shivers down my spin as they are the most heavily targeted asset classes that the SEC has been going after as of late. Being that Cardano is 3rd on the market cap list I don't see this one slipping under the radar and instead be a focal battle ground for crypto, SEC and governments. One of which will most likely be an expensive and long drawn out process much like we have been seeing with XRP lawsuits.

### How Will Djed Hold It's Peg?

Per Djed white paper the stablecoin will hold its peg by buying up other stable coins and burning them or holding them as a backup asset. This will make it so that Djed simply holds a bunch of other stable coins to rely on it's price peg  so it doesn't really introduce anything new in itself it just piggy backs off all the others.

What's interesting is that stablecoins at the moment have three backings.

One by holding FIAT money for the peg
Two by holding other loans and short term assets to provide growth to the stablecoin
Three by riding on top of other stable coins or crypto assets
Four by holding other assets such as gold, silver etc. your commodities

Which one is best? The world may never know but having options and multiple points of contact help diversify  means less chance of the entire thing to have a single point of failure and come crumbing down.

The stable coin itself will be working as a autonomous bank so that means no one person or entity would have control of it instead it would be a system that brings in assets and keeps them on tab depending on supply and demand of the stablecoin.

### The First Large Proof Of Stake

When we think about it Cardano is the FIRST blockchain to use Proof of Stake and be in the top 5 cryptos. This was normally reserved to Proof of Work only. This is a system Ethereum will be going to as well while Bitcoin continues to be a Proof of Work system. Bitcoin however prides itself on being a store of value but it's a dinosaur compared to these other blockchains. What will be interesting is to see over the next year what happens with proof of stake as it does seem like a more decentralized and better way of doing things. What I like about Cardano over Ethereums Proof of Stake system is Ethereum I believe will require 42 Ether to be staked in order to run it on your computer. While ADA it doesn't matter as it's a delegated proof of stake system in which you are voting for others to secure the network. That means you get your fair share of new ADA no matter how little you have staked. The ADA epoch is 5 days so the lock up time of those funds isn't much longer then if you put money in a savings account and tried to transfer it to a checking account for example.

Cardano needs to get on the ball however and start rolling out some of these use cases for the token as right now there simply are just projects going on and many look long term before they will get to the active stage.

What features are you looking forward to and if you like ADA let me know why in the comments.

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