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Our guide to Solana vs. Cardano. Which side would you take?

Tanja Nechet

News editor

Jul 26, 2022 at 07:24

The Cardano blockchain platform has made a new record. The network reached a milestone: 1760 days without outages. That is almost five years. 

Solana, the platform’s main competitor among the most prominent cryptocurrencies after Bitcoin and Ethereum, can’t boast such achievements. The network suffered its second outage as recently as May 2022, causing the SOL token price to fall. But in June, it even overtook Etherium in the number of new users (uh-oh, danger. Vitalik, hurry up!).

If you’re looking for what to invest in, let’s look at both crypto’s flaws and advantages.

What’s the point of Cardano?

Cardano is among the leading cryptocurrency projects that have successfully implemented proof-of-stake (PoS) mechanisms. Cardano is a public blockchainBlockchain technology is called distributed ledger technology (DLT). Data stored in it cannot be changed and is transparent due to decentralization and cryptographic hashing.In a blockchain, information is stored in blocks with a certain amount of memory (hence the name) linked to each other. Once one side is filled with information, it closes and connects to the next, forming a kind of stack. In turn, a blockchain platform or the framework is the building blocks for developing blockchain-based applications, not from scratch but through ready-to-use tools. most common types of that kind of network. In public blockchains anyone with access to a stable Internet connection can connect to the network and start checking blocks. network that runs its cryptocurrency token, ADA. ADA has a limited supply of about 45 billion, with only about 33.5 billion ADA tokens already in circulation.

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Cardano was built to handle more than 250 transactions per second (TPS) compared to 15 or less for Ethereum. According to some reports, about 0.1 ADA per transaction is charged ($0.049 per the exchange rate as of July 25).

The Cardano network has a secure, two-tiered architecture that allows transactions to be processed and smart contracts (programs on blockchain that run when the specified parameters appear, for instance, to perform a transaction) to be implemented. The proprietary validation mechanism, Ouroboros Proof of Stake, delegates authentication authority to ADA holders, who are rewarded for delegating their tokens to the authentication network. Also, all ADA holders can vote for the direction of the network’s development.

The Ouroboros Proof of Stake mechanism also reduced the proposed energy required by about 99% (as compared to Ethereum). And Cardano cannot be mined, making it an “environmentally friendly” cryptocurrency. 

What is Solana, and why use it if it’s not so stable?

Solana is a public, open-source blockchain platform designed to host decentralized applications. It has gained traction by offering faster operation and lower transaction fees; it can support up to 50,000 TPS.

Solana has recently earned popularity in the NFT and DeFi ecosystems because it is cheaper and faster than competitors. This blockchain processes 50,000 transactions per second and 400 мс block times; the average cost per transaction is $0.00025 (as of July 21). Ethereum can only process about 13 transactions per second, and transaction fees are higher.  

Unlike Cardano, which has a fixed limit on the number of tokens that will ever be available, Solana uses a deflationary monetary system in which SOL tokens used to pay transaction fees are burned and withdrawn from circulation.

So which one is better?

The scalability problem solved by Cardano and Solana has made these two cryptocurrency projects direct competitors to Ethereum.

Cardano and Solana are very close in many aspects; they are both smart contract projects and give their customers many possibilities in their respective decentralized finance (DeFi) ecosystems. Many analysts expect Cardano’s adoption to grow in 2022, and with it ADA’s price, as it acts as a useful token in the Cardano ecosystem. This altcoin is expected to perform well in 2022.

In the meantime, Solana is the best technology product with user-friendly applications and one of the fastest and cheapest blockchains, but with a quasi-decentralized network. On the other hand, Cardano is unique because of its remarkable Proof of Stake mechanism, Ouroboros, and lower transaction fees. Solana’s ecosystem of dApps and DeFi products has a good chance of overtaking Ethereum in the near term. This is especially important because Ethereum is already developing a scaling solution, but it may not arrive until 2023 (although Vitalik Buterin promised a move to Proof-of-Stake this summer).

According to CoinMarketCap data, ADA and SOL are among the best cryptocurrencies as of July 26.

Solana has become the most popular cryptocurrency of 2021 and is up more than 10,000%. According to the analyst Analytics Insight, SOL is one of the best altcoins to perform well this year and beyond.

Solana is a promising cryptocurrency to buy and invest in, and it has one of the fastest-growing ecosystems of DeFi and NFT projects. As Solana’s blockchain adoption grows, so does the intrinsic value of SOL tokens. According to many predictions, the price of Solana tokens will increase by more than 450% in 2022.

But, compared to Cardano, it is still incredibly unstable, which directly affects the coin’s price.

And, as long as the market is still bearish and behaves unpredictably, there is always a risk that the situation could turn 180 degrees. So it’s up to you, young crypto padawan, to decide how to spend your money.

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