Cardano (ADA) is expected to have high expectations for 2023. In the new year, Ethereum (ETH) could deliver on some promises made in 2021 and 2022 that the smart contract blockchain failed to deliver.
One of Cardano's main promises is the arrival of stablecoins. These aren't new, but they're one of the top expectations of ADA investors as a stable asset could help Cardano grow significantly in the decentralized finance (Defi) space.
While maintaining a stablecoin peg for multiple Layer 1 projects is one of the biggest issues in 2022, the Ethereum killers are more optimistic than pessimistic about this launch, which is set to happen earlier this year.
The second stablecoin is called OST and will be a euro-backed asset.
Two stablecoins are expected on the Cardano network in Q1 2023: The first is a centralized stablecoin called USDA, which will be a US dollar-backed asset. To maintain parity, he will use fiat assets and still get the benefits of Cardano, such as B. the network efficiency. The second stablecoin is called OST and will be a euro-backed asset.
Another highly anticipated stable asset is Djed, a token developed in collaboration with Coti. The stablecoin will keep up with its stake to the dollar through Cardano's shrewd agreement plan. Djed will have a reserve of base currencies that he will mine and burn other stable assets and reserve currencies to smooth out fluctuations.
Hydra, Tier 2 scalability solution
In 2022, Cardano took a big step towards network scalability with the Vasil hard fork. This involved making changes to the Cardano blockchain that make it more efficient. However, previous blockchains such as Bitcoin (BTC) and Ethereum have shown that a scalable network is an ongoing concern for cryptocurrencies to be used in everyday life.
Cardano is interested in further developments in this area, with the preparation for Hydra being a solution for layer 2 scalabilities. Hydra aims to improve transaction speed through low latency and high throughput without sacrificing low transfer rates.
The Hydra layer is a protocol intended to be stacked on top of Cardano. It will allow developers to add complex and specialized protocols to the platform. Charles Hoskinson, the founder of Cardano, believes this layer can facilitate other things like fast finishing, microtransactions, and microgorging.
This is one of the most important developments for the cryptocurrency team. After all, the whitepaper was published in March 2020.
Expectations of the Cardano blockchain include oracles. This modality is crucial because it connects on-chain and off-chain data. An example of the growth of oracles is Chainlink (LINK), which is helping bring this modality to smart contracts on Ethereum and helping them reach their true potential. This can also contribute to the market acceptance of the Cardano network.
Examples of oracle implementations include atomic swaps, cross-chain liquidity pools, and pricing based on mutually agreed oracle dates. With the assistance of this critical region for the blockchain business, Cardano further qualifies as a significant Ethereum contender.
In 2022, a decentralized oracle called Charli3 was released for Cardano. This oracle differs from older oracles as it avoids problems with flexibility and scaling. The next oracles for Cardano are expected to be released in 2023.
