Despite being considered one of the most technologically advanced blockchains, Cardano struggles to climb the ladder. What slows its growth?
First you need to know that the average user doesn’t try to understand how the blockchain works, nor how their credit card works. He is simply looking for a tool that allows him to carry out transactions without risking losing his money.
Now, let’s set aside everything we know about Cardano and assume that it really is the best blockchain in the world.
Cardano may be the most decentralized and technologically advanced blockchain in the world, but can it dethrone networks like Ethereum? For practical reasons, the answer is no.
History has taught us that the best are not always the first. Otherwise, people wouldn’t have preferred VHS tapes to Betamax tapes. Indeed, people are not looking for the best technology, but rather a tool that they can use in a simple and practical way.
Cardano could be the best blockchain in the world, so what?
Cardano may be the best blockchain in terms of quality, but that won’t guarantee its success or adoption. Indeed, in addition to its marketing strategy that leaves something to be desired, the platform faces fierce competitors that could create insurmountable problems for it.
While the cryptocurrency market appreciates innovation and speed, the pace of development of Cardano remains very slow compared to its rivals. And by dwelling on often futile technical details, the platform risks losing a large part of its market share.
For example, when you decide to buy a light bulb, you don’t really want to know who made it and how they made it, because the most important thing to you is that the light bulb turns on. The same goes for blockchains – investors will always choose the fastest, cheapest and most convenient blockchain.
Cardano is also proud of its “innovative ideas” and contributions to the scientific community, but what does this bring to its investors? Not so much. Therefore, if a team of developers decides to take these ideas and build a crypto project with a real marketing strategy and good partners, Cardano risks losing its users.
Did Cardano pick the wrong target?
Cardano has always paid particular attention to the African continent. But is it really a good target for its products?
On the humanitarian side, Cardano has a vision that deserves applause. Indeed, Africa is home to a large population of young people who welcome new ideas and innovative technologies such as the blockchain with open arms. However, since consumers aren’t always loyal to brands, it’s possible for a new company to dethrone Cardano by seizing the right opportunities at the right time.
Another important point; almost 57% of the African population has no access to the traditional banking system and wants to find alternative solutions. Similarly, a good portion of the population (24%) lacks access to the internet, meaning that Cardano needs to work on the infrastructure first before introducing blockchain.
So, it is not Cardano’s vision that is the problem, but rather his approach. Indeed, the project team seeks to introduce an innovative technology without preparing the ground for its adoption. And of course, you can’t build a house without developing the land.
The example of the startup World Mobile
World Mobile is a startup that aims to build telecommunications networks in African countries where traditional telecommunications companies have failed. The startup has all the ingredients for success, but its path will not be without pitfalls. According to its leaders, it will take almost 10 years to create “the largest mobile network in the world” and create an affordable quality Internet in Africa.
While the startup plans to complete its project in 2030, unforeseen legal proceedings and technical issues could delay its growth. Therefore, the project is unlikely to be completed on the expected date.
On the other hand, many Africans cannot afford to buy a smartphone or access the internet. According to GSMA, an association of over 750 mobile phone companies, a conventional smartphone costs 120% more than the monthly income of the 20% of the lowest paid workers in sub-Saharan Africa.
Unless Cardano plans to build its own brand of smartphones and seriously work on the infrastructure, it will be very difficult to promote his services in Africa.
Partnerships that may not bear fruit
With most of its target customers unable to access its services, what does Cardano expect for the next 10-15 years? The Cardano community has shown exemplary patience so far, but until when? ADA, the native token of the project, is currently down 91% from its all-time high.
Although a large part of the African population cannot access the cryptocurrency market, Cardano has already entered into partnerships with several African countries. This is a good idea, as mass adoption is unlikely to come from NFTs or small DeFi transactions. Similarly, governments already have their own user bases. They will therefore be able to more easily introduce the blockchain into the daily life of citizens.
However, when we take a close look at Cardano partnerships, we realize that they are not that impressive. Indeed, most of the government partnerships announced by the project are dormant or still pending. Thus, it only takes one misstep for Cardano to cause its partner governments to back down. Another important point; the African continent is considered unstable and some of its governments are not really trustworthy.
Has Cardano brought anything to Africa?
The Ethiopian Ministry of Education, in partnership with Cardano, plans to create decentralized IDs and blockchain certifications for 5 million students and 750,000 teachers. Unfortunately, due to the civil war that prompted the country to declare a state of emergency, this goal is unlikely to be achieved any time soon.
World Mobile has also partnered with Cardano to bring “affordable internet” to millions of people in Africa. Nothing has been done so far, but this partnership still proves that Cardano means well. Sure, Rome wasn’t built in a day, but does that justify Cardano’s subsequent delays?
The China problem
If the Cardano team can debunk its criticisms and build a financial infrastructure in Africa, it will face a strong opponent: China.
Indeed, China has a strong presence in Africa and uses its economic power to gain influence over various African countries. If Cardano is to have any chance of success, it will have to bow to or oppose Chinese codes and face the consequences.
Africa is certainly a market with great potential, but it shouldn’t be Cardano’s only priority. To be successful in Africa, the project will have to make concessions and sacrifice a lot of time, resources and effort.
By focusing a little too much on Africa, Cardano is missing out on much easier-to-grab opportunities, which is slowing its growth and adoption. Meanwhile, other blockchain projects continue to develop more practical solutions and level up.
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